Salt-to-steel conglomerate Tata Group is exploring the option of buying a majority stake in e-pharmacy 1mg.
The Tata Group has begun talks for the deal with the Sequoia Capital-backed company, according to a report by The Economic Times.
"The talks have been ongoing as Tatas look to build their super-app platform. The Tata group's strategy is to pick up controlling stake but keep the management to run the operation...," a source told the publication.
Moneycontrol could not independently verify the report.
A Tata Group spokesperson declined to comment when contacted by The Economic Times. 1mg cofounder and CEO Prashant Tandon had not yet responded to a request for comment.
1mg has been in discussion to raise around $100 million, but the funding may not materialise, the report said.
E-pharmacies have gained popularity in India after the COVID-19 pandemic and consequent lockdown.
According to a report by Frost & Sullivan, online pharmacies are expected to reach 70 million households in India by 2025, and the sector will expand to over 75 companies.
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