Online pharmacy 1mg to raise $17.8 mn debt from investor consortium

Gurugram-based 1mg Technologies, which operates an eponymous online pharmacy, is raising $17.8 million (Rs 133 crore) debt from MPOF Mauritius, MAF Mauritius and Swiss healthcare-focused firm HBM Healthcare Investment.

Other investors in the round include the family office KWE Beteiligungen and World Bank’s investment arm International Finance Corporation (IFC). 

KWE Beteiligungen is a subsidiary of Zug, Switzerland based venture capital firm Corisol Holding. 

The company has offered a total of 38,668 Class 6 compulsory convertible debentures (CCD) to the mentioned investors for Rs 1,33,08,70,197.16, according to regulatory filings. 

Email queries to 1mg on the development did not elicit a response at the time of publishing this report.

The company last raised funds in June 2019 when Corisol Holding, IFC and a consortium of venture capital firms from South Korea led by Redwood Global and Korea Omega Healthcare Fund along with other existing investors, poured in $70 million. 

Prior to that, it raised $10.32 million (Rs 65.37 crore) in funding led by South Korean investment firm Redwood Global Healthcare Fund. 

Founded in 2011 by Prashant Tandon, Vikas Chauhan and Gaurav Agarwal, the online pharmacy was previously known as HealthKart Plus. It allows customers to order medicines, consult doctors and purchase health products on its website and via its app. Users can also book diagnostic services and lab tests.

Like other ecommerce companies, online pharmacies also faced hiccups in business when the country went into a lockdown due to the Covid-19 pandemic in March. 

E-pharma companies saw a rise in business after ironing out the supply chain and delivery issues.