**Tata 1mg Expands B2B Offerings Amidst Rapid Growth**
Tata 1mg, a prominent diagnostics and online pharmacy platform, is intensifying its focus on business-to-business (B2B) services, which have significantly contributed to its growth in FY25. Gaurav Agarwal, co-founder of Tata 1mg, revealed that the enterprise segment now constitutes 30% of the company’s revenue and is projected to experience substantial growth by the end of the current fiscal year. “Our enterprise business is growing very fast—almost 100% year on year. We see tremendous growth opportunities in corporate programs, especially in diagnostics,” Agarwal stated.
The B2B segment of Tata 1mg includes the provision of healthcare solutions to corporate clients. The company is actively expanding its diagnostics lab centers and enhancing service availability beyond metropolitan areas as it prepares to secure $300 million in external funding. While Agarwal refrained from discussing the specifics of the fundraising timeline, it is noteworthy that Tata 1mg previously raised $40 million through a rights issue from Tata Digital in 2022, following Tata Digital’s strategic investment in the company in 2021.
Agarwal emphasized the complexities involved in delivering healthcare to corporates due to various regulatory requirements. To streamline this process, Tata 1mg is also enhancing its offline retail operations, allowing consumers who prefer in-person shopping to access the same benefits as online customers. The company added 23 retail stores in the June quarter of FY26, bringing its total to 126 across ten cities, which aligns with its omnichannel vision. Additionally, four new diagnostic labs were established in Patna, Bhubaneswar, Ranchi, and Vishakhapatnam, with plans for further investment to expand the lab network this year.
In the competitive landscape of pharmacy and diagnostics, Tata 1mg faces rivals such as Apollo, PharmEasy, and Reliance’s Netmeds. According to Tata Sons’ annual report, Tata 1mg’s consolidated revenue increased by 22% to ₹2,392 crore in FY25, up from ₹1,968 crore the previous year, while its losses narrowed to ₹276 crore from ₹313 crore.
The healthcare sector is witnessing a surge in quick medicine delivery services, with new entrants like Swiggy and Zepto joining the fray, alongside startups such as Plazza, Medstown, and Medino’s. In contrast, Tata 1mg is innovating its delivery operations to achieve medicine delivery times within 30-60 minutes in major cities. Agarwal noted that the median delivery time in Gurugram is currently 25 minutes, facilitated through a combination of online and offline retail stores, with pilot programs for sub-15-minute deliveries underway.
In summary, Tata 1mg is strategically positioning itself for growth in the B2B sector while enhancing its retail and delivery capabilities, setting the stage for a promising future in the healthcare market.
**FAQ**
**What is Tata 1mg’s focus for future growth?**
Tata 1mg is concentrating on expanding its B2B offerings, particularly in corporate healthcare solutions and diagnostics, while also enhancing its retail and delivery services.
