Tata 1mg posts 20% growth in FY25 turnover as it re-enters investment phase

Online pharmacy Tata 1mg reported 20% growth in its turnover for FY25 on a consolidated basis to Rs 2,392 crore, according to Tata Sons’ annual report for the fiscal year.

During the reporting period, its primary entity Tata 1mg Technologies reported revenue of Rs 375 crore with a threefold jump in profit after tax to Rs 65 crore. Meanwhile, subsidiary Tata 1mg Healthcare reported Rs 2,016 crore in turnover, reflecting 17% growth in its topline from FY24. It, however, suffered a net loss of Rs 342 crore.

Tata Digital had acquired a strategic stake in 1mg in 2021. Since then, the company has raised just $40 million, through a rights issue from Tata Digital in 2022.


ET had reported in May that the company, which competes with the likes of PharmEasy and Apollo Hospitals’ pharmacy division Apollo 24/7, is once again in an investment phase. This comes as it looks to expand its offline presence amid talk of an external funding round.

The proposed $300 million external fundraise signals a strategic pivot for the Tata Group, which had previously encouraged 1mg and its grocery delivery unit BigBasket to lean more on debt to support their expansion.

The Tata Group currently owns a 67% stake in 1mg. The founders own about 7%, while investors such as European family office Corisol Holdings, World Bank investment arm IFC and others hold the rest.

The company’s current cash burn of around Rs 180-200 crore has mainly been earmarked for its offline expansion.

The offline stores will also support 1mg’s quick medicine delivery operations. While the company is setting up its own offline stores to facilitate 30-minute deliveries in various cities, including Gurugram, Noida, Ghaziabad, Jaipur, Lucknow and Faridabad, it has also partnered with BigBasket in places where its outlets have not yet opened.

The company’s business-to-consumer segment, which includes e-pharmacy, e-diagnostics and consultation services, now contributes 70% of its revenue.