Tata 1mg Slashes Net Loss, Expands Offline Retail for Faster Deliveries
Tata 1mg, a leading online pharmacy, has reported a significant reduction in its consolidated net loss to Rs 276 crore in FY25. The company is also expanding its reach with a brick-and-mortar retail strategy, aiming to deepen its market footprint and accelerate medicine delivery.
Tata 1mg Technologies, a subsidiary, posted a profit of Rs 65 crore, while Tata 1mg Healthcare reported a net loss of Rs 342 crore. The company's consolidated revenue grew by 22% year-on-year to Rs 2,392 crore. This growth is attributed to the company's expanding portfolio and increasing market share.
The offline pharmacy strategy, a collaboration with Tata Digital, is currently being implemented in Mumbai and Delhi. These retail outlets aim to support 30-minute medicine deliveries and are being developed independently and in partnership with BigBasket. Tata Digital has increased its stake in Tata 1mg to about 67% as of FY25. The company's annual cash burn of Rs 180-200 crore is being used to expand offline stores in cities like Gurugram, Noida, Lucknow, and Jaipur.
Tata 1mg's last reported valuation was $1.25 billion. Despite the net loss, the company's growth and expansion plans indicate a positive outlook. Tata Digital, with a standalone revenue of Rs 546.9 crore and a loss of Rs 827.5 crore in FY25, continues to support Tata 1mg's expansion and market penetration.
