Tata Sons’ digital services subsidiary Tata Digital has infused debt money in online medicine startup 1mg. Tata Digital is in the final stages to acquire a controlling stake in the Gurugram-based company. As per regulatory filings, Tata Digital is picking up Rs 100 crore worth compulsorily convertible debentures or CCDs in 1mg, according to Entrackr, a platform that tracks tech companies.
1mg has allotted 29,054 CCDs at a price of Rs 34,417.87 per debenture to raise the sum. The firm has already received Rs 25 crore while the remaining Rs 75 crore will be infused at a later stage. The Entrackr report said Tata Digital’s investment has valued the eight-year-old firm at $240 million.
Tata Digital is reportedly expected to acquire over 50 per cent stake in 1mg and the companies have been in talks since last November. The acquisition is expected to help Tata strengthen its e-commerce initiatives. The deal comes at a time when e-commerce sales, especially of food, groceries and healthcare products, have soared in India as the Covid-19 pandemic has spurred a shift to online shopping.
Last month, it was reported that Tata Sons Pvt Ltd has agreed to acquire control of India’s largest online grocer BigBasket, according to a filing with the Competition Commission of India (CCI). The deal was valued at more than $1 billion.
Tata Digital has proposed to buy 64.3 per cent of an entity that runs business-to-business sales for BigBasket. It was reported that Tata may infuse additional capital into BigBasket, which may enhance its holding to about 80 per cent and may buy out Chinese e-commerce giant Alibaba's stake.