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.
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
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
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
|Apr-15||$6 m||Sequoia Capital, Intel Capital, Omidyar Network|
|Apr-16||$16 m||Sequoia Capital, Maverick Capital, Omidyar Network|
|May-16||HBM Healthcare Investments AG|
|Jun-17||$10 m||Sequoia Capital, Maverick Capital, Omidyar Network, HBM Healthcare Investments AG|
|Jul-17||$15 m||Sequoia Capital, Maverick Capital, Omidyar Network, Kae Capital, HBM Healthcare Investments AG|
|Jan-19||$35.3 m||Omidyar Network, HBM Healthcare Investments AG, Sequoia Capital India, Corisol Holding AG|
|Apr-19||$10.3 m||Redwood Global Healthcare Fund|
|Jun-19||$70 m||Sequoia Capital, Omidyar Network, International Finance Corporation, HBM Healthcare Investments AG, Maverick Ventures|
|Jan-20||$9.9 m||Bill & Melinda Gates Foundation|
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.
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