How Did 1mg Emerge As India’s Most Reliable Online Pharmacy And Medtech Giant?

How did 1mg emerge as India’s most reliable online pharmacy and Medtech giant?

With the consumer’s changing lifestyle over the last ten years, healthcare has become increasingly important. Similar to this, as internet speeds have increased, a variety of e-commerce platforms have emerged that have improved human existence.

The IIT trio created 1mg to spread knowledge about medications and provide clients all over India with a one-stop shop for their instant medicinal needs.

An online medical technology platform called 1mg, formerly known as HealthKart Plus, allows users to access all of their medical needs and have their blood samples transported to nearby labs. The website also aids in educating people about various medications so that nobody is misled.

A pharmacy that operates over the Internet and delivers orders to customers via mail, shipping services, or an online pharmacy web portal is known as an online pharmacy, internet pharmacy, or mail-order pharmacy.

A digital consumer healthcare platform called 1mg, sometimes known as an online pharmacy, aims to make healthcare more approachable, comprehensible, and inexpensive.

Healthkart separated its generic medicine search business, HealthkartPlus, and rebranded it as 1mg before launching it in April 2015. It enables users to research medications recommended by doctors and purchase them online. Users can search for medications by diseases, classes, businesses, and brands.

Let’s look at 1MG’s Startup Story to learn more about 1MG’s funding, business plan, company profile, turnover, growth, and revenue model, as well as its founders.

News Update about 1mg

To further expand the former’s digital operations, Tata Digital, a division of Tata Sons Private Ltd., will buy a sizable interest in 1mg on June 10, 2021. Although the source has not yet provided an estimate, 1mg is now valued at $400 million overall.

According to AppTweak data, 1mg got the most downloads (184.2K) among telemedicine businesses from January 1 to February 10, 2021. To take part in the COVID-19 immunisation, it has invested in enhancing its cold chain and contacting vaccine manufacturers for cooperation (when the government allows the private sector to get in)

What is 1 mg and how does it work?

A platform for online drug delivery created by 1mg aims to make healthcare more approachable, understandable, and economical.

Customers may conveniently fulfil all of their healthcare demands on one platform thanks to the company’s online delivery of medications and health items, lab test booking, online consultations, and reliable information from healthcare professionals.

An online platform that may be evaluated for all of our health needs is provided to us by 1mg.com. Every firm is attempting to include AI in some way to streamline and improve its offerings because it is being touted as the technology of the future.

Recently, 1mg introduced the “Ask a Doctor” feature, a user-friendly chatbot that asks questions to precisely identify the potential issue and displays the medical speciality under which the condition may fall. Users can select one of these, and a doctor is assigned to them who can do a chat-based diagnosis.

1mg – The Meaning of the Logo

The fundamental unit for determining a medicine’s potency is measured in milligrammes, and this is what 1mg is all about (mg). And to top it all off, the business’s first office was at 1 MG Road.

Founder and History of 1mg

Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan created the e-pharmacy firm 1mg, which has its headquarters in Gurugram and was formerly known as HealthKartPlus, in 2013.

CEO and co-founder Prashant Tandon

The co-founder and CEO of one mg, the most reputable online pharmacy in India, is Prashant Tandon. He has worked with the business since its founding in 2013.

He earned his degree from IIT Delhi in 2001 and continued his education by attending AIIMS (All India Institute of Medical Sciences). He practised medicine for two years following the completion of his medical degree before leaving to attend Harvard Business School, where he graduated with distinction.

COO and co-founder Gaurav Agarwal

One Mg, which Gaurav Agarwal and Prashant Tandon launched in 2013, is the company’s co-founder and chief operating officer. They both previously collaborated at HealthkartPlus, a different healthcare firm. Gaurav is in charge of the organization’s technological and product functions.

Co-founder Vikas Chauhaan

Co-founder of 1 Mg and the organization’s marketing director, Vikas Chauhan. He has more than 14 years of marketing experience, both domestically and internationally, and is an IIM Ahmedabad graduate.

As a platform for consumers to access all the information about medications, HealthKartPlus was the name of the website when it was launched. Users urged the company to begin delivering medications after the platform became so well-liked and received such a positive response from the general population. So, 1 mg was begun.

Healthkart separated its generic medicine search business, HealthkartPlus, and rebranded it as 1mg before launching it in April 2015. Pharmaceuticals, labs, and doctors are the three business verticals of the organisation.

The 1mg – Mission

Through a comprehensive website and mobile app, the firm aims to make healthcare for one billion Indians inexpensive, understandable, and accessible. Customers can find more affordable alternatives to their prescription drugs and learn more about their medications thanks to 1mg.

Business Model of 1mg

Users of 1mg can access services like online Q&A, medication, preventive healthcare, and diagnostics. In addition, they provide native adverts for pharmaceutical firms on various platforms.

The company has opened pharmacies in 600 cities over the last year and added homoeopathy and Ayurveda to its product line.

The business disseminated information on medications using its app. To spread the word and let people know they are based in the city, they are using emails and push alerts. Depending on the city, the company also runs offline advertisements.

To disseminate information, they hold health fairs and run newspaper advertisements. However, a large part of their marketing is done online.

Online diagnosis and lab testing services are how 1mg generates revenue. The majority of their yearly revenues come from this. The remainder of their yearly budget is made up of subscription-based care plans, B2B healthcare solutions, and online medicine delivery.

Revenue and Growth of 1mg

According to regulatory filings, 1mg’s total revenue in FY20 was Rs. 369.3 crores, an increase of more than 77% from the company’s revenue in FY19, which was Rs. 209.1 crores.

Online drug sales haven’t always been straightforward due to regulatory difficulties that this industry faced in 2019.

With a 2.8X increase in operational revenue, Gurugram-based 1mg has seen respectable growth despite the regulatory uncertainty. It has reported total operating revenue of Rs 240.85 crore, an increase of 180%.

In the fiscal year that ended in March 2019, the company earned Rs. 39.45 crores from providing marketplace services and Rs. 68.3 crores from providing online lab tests and diagnostics. Additionally, it earned Rs 67.8 lakhs in collection fees.

The overall revenue from services increased significantly from Rs 41.8 crores in FY18 to Rs 79.5 crores in FY19, growing by 90.2%. Over one-third of 1mg‘s overall revenue during the 2019 fiscal year came from all of its services combined.

1mg – Investors and Funding

In total, $1mg has raised $204.6M in investment across 16 rounds. On April 19, 2021, they received their most recent cash from a round of debt financing. 17 investors are financing 1mg. The most recent investors include MAF Mauritius and International Finance Corporation.

Acquisitions of 1 mg

1mg has purchased 3 businesses. Dawailelo, who they most recently acquired on September 1st, 2017.

1mg – Competitors

Netmeds, Practo, Medlife, PharmEasy, Metarain Distributors Private Limited, HealthKart, CareOnGo, mChemist, and BookMEDS are among the leading rivals of 1mg.

Why is 1mg the best option for Indians looking to buy medications online?

The success of India‘s most reputable online pharmacy has been attributed to several important aspects, including:

• Customer happiness is the priority
• A large number of brands and items
• Quick and trustworthy delivery
• Reasonable costs
• An emphasis on client satisfaction

Client satisfaction: Customers turn to online pharmacies like 1mg because they prioritise client happiness, which is one of the primary factors in their trust.

This indicates that they consistently strive to give their clients the finest experience possible. All elements of the client experience—from quick and reliable delivery to reasonable prices—are considered.

A Variety of Brands and Products

Customers don’t need to spend hours going through other websites or physical stores because of the website’s large assortment of products, which makes it simple for them to get what they need. When dealing with medical difficulties, when every second matters, this helps save time and money.

Reliable & Quick Delivery

Poor delivery delays are one of the biggest issues clients have with online pharmacies. With India’s most reputable online pharmacy, which takes great pride in its quick and dependable delivery, this is not a problem. They frequently fulfil orders in less than 24 hours!

Reasonable Prices

The focus on reasonable rates at India’s most reputable online pharmacy is another important aspect of its success. Customers may now purchase the goods they require without spending a fortune, thanks to this.

1mg – Achievements and Awards

One year after they began, 1mg won the m-billionth prize for m-health in South Asia in 2014. Additionally, News Corp VCCircle named them the most promising healthcare firm. 2016 saw Gmasa recognise 1mg as the Best App in the Medical Category.

At the International Quality Awards, they also took home the prize for the finest online pharmacy in India. In the same year, they won the NDTV Unicorn Awards and received the title “New Kid on the Block.”

One of the Top 50 businesses in India according to the Smart CEO-Startup50 2017 programme was 1mg. In terms of the popularity of the app and user engagement by the year 2017, they had increased by 600%. They widened their selection of goods to include homoeopathic treatments and Ayurvedic medications.

The business raised 37 million dollars throughout 2016 and 2017 through 5 rounds of fundraising. The BML Munjal Award for “Business Excellence through Learning and Development” was given to 1mg in 2018.

They received the “Best Content in a Healthcare/Fitness App” honour at the 2018 Content Leadership Awards. At the India Mobile Congress, 1mg was also honoured with the “Best Mobile Innovation for Health award.”

Challenges with 1mg

When 1mg first began, it was known as HealthKartPlus, a website that collected medical data and offered users alternative medications. The platform quickly caught up with the users, and soon they started requesting that delivery of medications be added as well.

1mg sought to alter a situation in which knowledge of medications and lab testing was either scant or nonexistent.

To make end-to-end tracking simpler for the customer, 1mg has a system in place where they onboard vendors onto the platform if they meet specific requirements, such as computerised inventory and invoicing.

Even despite harsh government regulations that outlawed online pharmacies by requiring a prescription to make a purchase, the startup is still able to generate revenue.

Future Plans of 1 mg

As part of its aggressive expansion strategy, 1mg has chosen to broaden the scope of its platform and enter the alternative medicine (AYUSH categories) market by acquiring Homeobuy.com. A website platform called Homeobuy sells homoeopathic remedies.

With this acquisition, 1mg will rebrand the website as www.1mgAyush.com and offer customers in New Delhi access to homoeopathic and ayurvedic medications.

The AYUSH category, a powerful medical system that has developed over a long time, has also received active support and development from the Indian government.

Following Tata Digital’s acquisition of the majority shareholding in 1mg, the business declared that it is anticipating committing to 60-minute delivery in a few key cities across the nation. In a lot of places, 1mg is renowned for 4-5 hour deliveries; this will also be expanded to other sites.

The partnership between 1mg and the Tata Group

To increase their reach and make it even simpler for Indians to fill their prescriptions online, 1MG Technologies Private Ltd. (“1MG”) announced a partnership with Tata Digital Limited, a 100% subsidiary of Tata Sons Private Limited, in May 2021.

After receiving its most latest funding from Tata Digital, 1mg emerges as a unicorn.

Following an internal investment round sponsored by Tata Digital, online pharmacy 1mg has joined the unicorn club, according to sources briefed on the situation.

The business was valued at $1.25 billion after raising $41 million. Privately held businesses valued at $1 billion are known as unicorns. The e-grocer BigBasket and Mukesh Bansal’s Cultfit are the first two unicorns under the Tatas’ e-commerce business. This is the third unicorn.

Furthermore, 1mg has emerged as the year’s 21st unicorn startup. The advancement occurs at a time when finding late-stage investment has grown more challenging following a record year in 2021.

After abandoning its intentions for an IPO, 1mg rival PharmEasy is also seeking to obtain fresh funding. Along with the conventional drugstore Apollo, Reliance-owned Netmeds also contends with 1mg.

Pharmacies like 1mg and PharmEasy experimented with offline locations last year as part of an omnichannel strategy.

Walmart-backed Sastasundar was purchased by Flipkart, which eventually changed its name to Flipkart Health Plus. More than $143 million has been invested in the healthcare industry.

To establish itself as a digital health platform offering a variety of services, including online medical consultations, 1mg is progressively looking to expand its diagnostic business.

While 1mg has previously started operating a few offline outlets in Delhi-NCR as a trial, its omnichannel strategy is in line with parent company Tata Digital’s aims to give its brands both an online and offline presence.

We are excited to see what comes next for the business because this is a major step in the right direction. Since there weren’t many reliable internet pharmacies in India at the time, 1mg swiftly established itself as the most reliable brand.

Currently, 1mg is the most reputable online pharmacy in India, and they are expanding quickly! We’ll examine more closely the crucial elements that have helped 1mg become India’s top online pharmacy in this startup story corner.

You need to search no further than 1 Mg if you want a trustworthy online pharmacy. They have put in place all the necessary measures to guarantee that their clients receive what they require when they require it.

edited and proofread by nikita sharma