Online marketplace for generic medicines, 1Mg has acquired Mumbai-based Medd, an aggregator of diagnostics labs. Through this acquisition, 1mg Technologies plans to expand its diagnostic services across new cities as well as include imaging tests such as X-Ray, MRI, CT Scan etc. The company did not disclose the value of the deal.
Medd was founded last year by IIT-B alumni, Arpit Kothari and Anurag Mundhada and Carnegie Mellon graduate Era Dwivedi. It is present in Mumbai, Indore, Bhopal, Nagpur, Bengaluru and Jaipur. Arpit Kothari and Anurag Mundhada will join the 1Mg team after the acquisition.
On acquiring Medd, CEO of 1Mg Prashant Tandon said,
With this acquisition, we are accelerating our drive to provide the best healthcare to our customers. Together with Medd, we see a unique opportunity to amplify our leadership position and enter new geographies as well as the radiology segment.
1mg started off as an online market place for generic drugs. It was rebranded and spun off from healthcare startup Healthkart last year. It had raised $6 million in Series A from Sequoia Capital, Omidyar Network, and founder of Makemytrip, Deep Kalra.
There are over 6 million downloads of 1Mg’s app and 80 million annual visits on its platform. In addition to medicine e-commerce, it also offers detailed information of over 100,000 medicines on its platform.
Entry of 1Mg into e-diagnostics space
It entered into e-diagnostics segment in August last year. So far it has been offering online service of diagnostics tests based on blood sample by partnering with a chain of diagnostics labs. It claims to offer a saving of 40-60% on these lab tests through its platform.
Explaining their decision to expand into this segment, Prashant Tandon says,
Diagnostics is a huge opportunity within ecommerce since there are more than 100,000 diagnostics labs with very few scale players. Consumer experience is also not satisfactory with issues like requirements of advance bookings, lack of transparency in pricing across labs.
With the latest acquisition of Medd, it plans to include imaging tests such as X-rays, CT Scans, etc. into diagnostics vertical. It is also planning to expand its diagnostics services 30 more cities this year. At present, it is present in 23 cities contributing about 15% of revenues. The company expects this share to grow to 25% with new tests and expansion into new cities.
1Mg recently raised its Series B round funding of 100 crores from Maverick Capital Ventures with participation from previous investors. This was followed by an additional undisclosed amount of investment from HBM Healthcare Investments AG.