1mg technologies, the spun-off entity of healthcare startup Healthkart which allows consumers to discover substitute generic drugs, has raised 100 crores from Maverick Capital Ventures, the VC arm of US-based hedge fund Maverick Capital. Existing investors Sequoia Capital and Omidyar Network also participated in the round.
The company said in a statement that funds will be used expand the online pharmacy and diagnostics verticals as well launch digital health products such as smart prescriptions and personalised health feeds for consumers.
1Mg technologies has a database of over 100000 medicines with detailed information on their composition and side effects. Consumers can compare prices of medicines with same compositions but different brands.
The company also operates an e-pharmacy platform that allows users to connect with local pharmacies and purchase these medicines online and get them home delivered.
According to Prashant Tandon, co-founder and chief executive at 1mg, their app allows customers to access knowledge about substitutes that can often save 80-90% on healthcare bills.
Last year in April, 1mg technologies had raised $6 million from Sequoia Capital, Omidyar Network, and founder of Makemytrip, Deep Kalra.
Since then, according to Tandon, revenue of 1Mg has grown almost eight times. At that time, it was rebranded from Healthkart Plus to 1Mg technologies and separated from Healthkart.com which is an online vendor of health products.
Both entities were run by Bright Lifecare Pvt. Ltd which was backed by Sequoia, Omidyar Network, and Intel Capital.
1Mg has recently launched an e-diagnostics service which allows consumers to compare different tests in the market bringing in a much-needed transparency in lab test market as well. People can also book diagnostic test appointments as well as doctor appointments through 1Mg.
Investment in 1Mg marks the first investment in an Indian startup by Maverick Capital which is a renowned global investor in healthcare startups. California-based Collective Health and San Francisco-based Castlight Health are among popular startups in the portfolio of Maverick.
Investment into 1mg continues to signify the importance, India’s health-tech sector has gained among investors. For once, VC firms have begun to realise how health-tech (and not e-commerce, hyperlocal delivery etc.) could be the revolutionary sector India so badly needs, considering that almost the entire of India’s rural and a majority of urban population is still devoid of basic healthcare.
With $124 million funding so far, healthcare platform Practo remains among the most heavily funded startups in the segment. In addition to it, there are number of other new startups such as Credihealth, Lybrate, Care24, Zoctr, Remidio which have managed to grab the investor attention.