Online pharmacy 1mg reports 77% revenue rise in FY20

Online pharmacy 1mg reports 77% revenue rise in FY20
Photo Credit: 123RF.com
2 Dec, 2020

Gurugram-based 1mg Technologies, which operates an eponymous online pharmacy, reported a 76.6% rise in yearly revenue, on a consolidated basis, in a period preceding Covid-19 lockdowns in the country.

The startup said its total revenue rose to Rs 369.3 crore in the financial year ended March 2020, from Rs 209.1 crore, a year earlier, according to regulatory filings.

Total loss, in the period, ballooned by 6.5% to Rs 317.8 crore.

The company’s total expenses rose to Rs 687.2 crore, from Rs 507.6 crore year-over-year.

The largest chunk of its ‘other expenses’ categories -- advertising promotional costs -- rose 149% to Rs 109.9 crore in the period. People costs at the company declined by 2% to Rs 120.3 crore.

The 1mg marketplace, earlier called HealthKart Plus, allows customers to order medicines, consult doctors and purchase health products on its website and via its app. Users can also book diagnostic services and lab tests. 

The company was founded in 2011 by Prashant Tandon, Vikas Chauhan and Gaurav Agarwal. 

Early September, the online pharmacy operator was reportedly in talks with Indian and global private equity players to raise over $100 million in a new round of funding.

The news came at a time when large players such as Amazon India and Reliance entered the e-pharmacy space, the latter through the acquisition of Netmeds. The space has also seen consolidation via PharmEasy’s acquisition of rival startup Medlife.

It last raised funds in early 2020 in a debt of $17.8 million from a consortium of investors -- MPOF Mauritius, MAF Mauritius, Swiss healthcare-focused firm HBM Healthcare Investment, family office KWE Beteiligungen, and World Bank’s investment arm International Finance Corporation (IFC).

Like peers in the ecommerce sector, online pharmacies faced hiccups in business, initially, when the country went into successive lockdowns due to the Covid-19 pandemic starting March. Eventually, e-pharma companies witnessed a rise in business after ironing out the supply chain and delivery issues.