1 Mg Online Pharmacy: A better way to shop for health

Share on facebook
Share on twitter
Share on linkedin
Share on google
Share on whatsapp
Share on email
1 mg Logo

Introduction

1 mg is an online pharmacy and health portal company providing access to healthcare needs. You can buy medicines, health related products, consult a doctor over video, audio, chat, and book lab tests from the comfort of your home.

Gaurav Agarwal, Vikas Chauhan, and Prashant Tandon of 1 mg Online Pharmacy
Gaurav Agarwal, Vikas Chauhan, and Prashant Tandon of 1 mg Online Pharmacy
Tanmay Saksena of 1 mg Online Pharmacy
Tanmay Saksena of 1 mg Online Pharmacy

The company was founded by the team of Prashant Tandon, Gaurav Agarwal, Vikas Chauhan, and Tanmay Saksena in the year 2015. Currently,  they hold the following position in the company:

  • Prashant Tandon, CEO & Co-Founder
  • Gaurav Agarwal, CTO & Co-Founder
  • Vikas Chauhan, Co-Founder
  • Tanmay Saksena, COO

The company has a registered office in New Delhi and corporate office in Gurugram, Haryana.

What does 1 mg online pharmacy offer

What does 1 mg online pharmacy offer

1 mg offers medicines along with other healthcare services. The services that it provides are as follows:

  • E-Pharmacy: All you have to do is—order medicines, like, allopathic, ayurvedic, homeopathic, vitamins & nutrition supplements or any other health product through their portal and get it delivered at your home from the licensed pharmacies with which they have a tie-up.
  • Online Consultations: Don’t want to wait in a queue? Well, you can consult a doctor via video, audio and chat from your home! They have over 20 kind of specialists.
  • Labs Tests: You can even book lab tests online and home sample collection service. You will get the reports online.

You can order your medicine by adding each of them separately or if it’s too much work for you, or, the order is for medicines which cannot be sold without a prescription, then just upload your prescription and the order will be placed. Other than this, it also provides other healthcare related products at a discounted rates!

The orders can be made either through their website or their mobile app.

The idea behind 1 mg

The core team of 1 mg online pharmacy believed that in healthcare sector, the information around medicines and lab tests were either not available or was too complex and incomprehensible to many.

This brought the idea to create a platform which was easily accessible, transparent, authentic, and easy-to-understand information for all.

How does 1mg make money?

1mg makes money by charging a commission from the Partner Pharmacies they work with. The commission is based on the nature and value of medicines sold via the platform. In each city, 1mg has a tie-up with multiple pharmacies and all orders in that particular city are assigned to those pharmacies. The billing for the medicines sold is directly done by these pharmacy partners. 1mg simply charges them a commission for the additional business it brings to these pharmacies.

Similarly, 1mg also has tie-ups with laboratories that offer diagnostic tests. They make money by charging these laboratories a commission on the value of tests booked through their platform.

Awards and Recognition

Awards and Recognition of 1 mg online pharmacy
Awards and Recognition of 1 mg online pharmacy

2019-2020: Winner in Health & Well Being Category

2019: ‘Best Mobile Innovation for Health award’ at the India Mobile Congress

2019: ‘Best Content in a Healthcare/Fitness App’ in the India Content Leadership Awards

2018: Won BML Munjal Award for ‘Business Excellence through Learning and Development’

2017: Recognized as Top 50 venture in The Smart CEO-Startup50 India 2017 program

2017: Recognized in Mary Meeker’s Internet Trends

2017: The only company for SD#3 ‘Health & Well Being for all’

For more awards and recognitions, please visit here.

1 mg Funding and Investors

Funding and Investors of 1 mg online pharmacy
Funding and Investors of 1 mg online pharmacy
Month-YearAmount RaisedInvestors
Apr-15$6 mSequoia Capital, Intel Capital, Omidyar Network
Apr-16$16 mSequoia Capital, Maverick Capital, Omidyar Network
May-16HBM Healthcare Investments AG
Jun-17$10 mSequoia Capital, Maverick Capital, Omidyar Network, HBM Healthcare Investments AG
Jul-17$15 mSequoia Capital, Maverick Capital, Omidyar Network, Kae Capital, HBM Healthcare Investments AG
Jan-19$35.3 mOmidyar Network, HBM Healthcare Investments AG, Sequoia Capital India, Corisol Holding AG
Apr-19$10.3 mRedwood Global Healthcare Fund
Jun-19$70 mSequoia Capital, Omidyar Network, International Finance Corporation, HBM Healthcare Investments AG, Maverick Ventures
Jan-20$9.9 mBill & Melinda Gates Foundation
Data collection source: Craft

Competitors

Competitors of 1 mg online pharmacy
Competitors of 1 mg online pharmacy

Just like any other company, 1 mg online pharmacy too has its fair share of competitors. The other companies which are giving tough fight to it are: Netmeds, Practo, Medlife, PharmEasy, Metarain Distributors Private Limited, HealthKart, CareOnGo, mChemist and BookMEDS.

Challenges, Revenue, and Growth

Selling medicines online hasn’t been all easy as this space witnessed regulatory challenges back in 2019. The Delhi High Court had ordered all the state governments to ban the online sale of medicines and the central drug regulator had asked the states to enforce a court directive prohibiting online medicine.

Amidst this regulatory uncertainty, 1mg online pharmacy managed to demonstrate sizeable growth with a 2.8x jump in operating revenue. Registering 180% growth, it had posted total operating revenue of 240.85 crore.

The company collected 39.45 crores from offering marketplace services while 68.3 crores through online diagnostics and lab testing services in year ending March 2019. It also made 67.8 lakhs from collection charges.

Importantly, the overall revenue from services grew 90.2%. From 41.8 crores in FY18 to 79.5 crores in FY19. All services together accounted for a little over one-third of the total revenues generated by 1mg during fiscal in 2019.

It reported a 76.6% rise in yearly revenue, on a consolidated basis, in a period preceding Covid-19 lockdowns in the country.

The company said its total revenue rose to 369.3 crore in the financial year ended March 2020, from 209.1 crore, a year earlier, according to regulatory filings.

Liked the article? Yes. You can further read about:

  1. Case Studies here
  2. Online Marketing here
  3. Branding and Advertising here
  4. Startup Guide here

Sachin Vishwakarma

Sachin Vishwakarma

Leave a Reply

Your email address will not be published. Required fields are marked *

On Key

Related Posts

Nykaa

NYKAA: A Monopoly Over Beauty

So, NYKAA was started back in 2012 by Falguni Nayar, an ex-directing manager of Kotak Mahindra. After serving for 20 years as a venture investor

YouTube Premium

Top 5 Benefits Of YouTube Premium

YouTube Premium is the new player in the game, well not so new as YouTube rebranded their previous version called ‘Youtube Red’ into ‘Youtube Premium’

Can we help you with Marketing?

drop us a line and keep in touch