Tata digital announced that it will be buying a majority stake in e-pharma startup 1mg, as it intends to build its super app. The Tata group-owned company, recently, has bought BigBasket and made an investment in Curefit. The financial details of the deal were not disclosed. The buying of a stake in 1mg will increase Tata digital’s reach as the e-pharma startup has a supply chain of over 20,000 pin codes and works with three advanced labs.
Tata Digital, a Tata Group subsidiary, will invest $75 mn in Curefit. The fitness startup co-founder Mukesh Bansal will be appointed as a President, Tata Digital and will lead the company he started. Curefit is the third major startup investment by the Tata group, having an interest in salt-to-software, as it builds its digital portfolio. Curefit was last valued at around $800 mn, before the beginning of the pandemic last year, when Singapore’s Temasek had picked up a stake in it.
Tata sons via Tata Digital have got their hands on a 64.3% stake in Alibaba-backed online grocery store, BigBasket. In March, India’s antitrust body approved the stake acquisition which came to fruition this month. The deal is said to be worth Rs 95 bn, which will buy out Alibaba’s stake in the e-grocer. Tata group is now a direct competitor to Amazon, Walmart, and Reliance. Tata Digital plans to launch its super app in 2022, with all facilities on a single platform.
Tata Digital has held talks with Just Dial to explore the option of striking a strategic alliance to venture into the e-com space. But, nothing has been finalised as of yet. The mergers and acquisitions team of Tata Sons has been putting together a list of possible partnerships that can help Tata Digital reach and scale-up in the online consumer space. The company is also said to be in talks with various other firms to finalise its ‘Super App’.
Tata Digital – Tata Group’s tech arm – is set to launch an integrated ‘Super App’ which will combine its consumer offerings on a single platform, enabling the firm to pit against rivals Reliance and Amazon. Tata Digital operates e-comm platform Tata CLiQ, online grocery store StarQuik, and online electronics platform Croma. Launching December, the app will enable customers avail various services including food, electronics, fashion, financial services etc.