The online pharmacy startup, 1mg Technologies has raised additional $15M in series C financing led by HBM Healthcare Investments. The round also saw participation from existing investors Maverick, Sequoia India, Omidyar & Kae Capital.
HBM is among the global leaders in healthcare-focused investing with around USD 1.5 billion under management. The investing arm focuses on development stage, growth and buyout financings of private companies, as well as investments in public companies.HBM had made its first investment in 1mg last year in May 2016, as a part of a top-up round following the Series B financing that was led by Maverick Capital Ventures. The total amount of funding raised by 1mg is now at $37 million.
HBM had made its first investment in 1mg last year in May 2016, as a part of a top-up round following the Series B financing that was led by Maverick Capital Ventures. The total amount of funding raised by 1mg is now at $37 million.
Commenting on the fund release lead investors Dr Andreas Wicki, CEO of HBM Healthcare Investments said “As a specialised healthcare investor, we have been monitoring the interesting impact that technology is having in the space of healthcare delivery. All companies in the healthcare domain are looking for innovative platforms to partner with to connect better with their consumers – very few platforms have managed to achieve the consumer engagement at scale like 1mg has done.”
Founded in 2012 as a drug information app called HealthKartPlus, 1mg spun out from its parent company, Bright Lifecare and changed its name after raising about $5.5 million in its first round of funding. The company operates through the web and mobile app, which has had a little over nine million downloads.
Prashant Tandon, CEO & co-founder of 1mg Technologies said, “Making healthcare transparent, understandable, accessible and affordable for consumers is a very important need of the ecosystem and also a huge opportunity to build a strong and sustainable business. Healthcare in India is going through profound changes, and we aspire to be the trusted partner of consumers as they navigate this space.”
The company wants to use these additional funds in building new lines of business, largely with corporates, insurance, and pharma companies besides looking at corporate wellness offerings for their workforce, outpatients’ insurance facilitation for insurance companies, and patient support and adherence programmes with pharma companies.
1mg Technologies currently competes with players such as NetMeds, CareOnGo, Practo, etc. Earlier this year in January, Practo had raised $55 Mn in Series D funding round led by Tencent and, recently rebranded itself into a complete healthcare platform and foray into e-pharmacy too.