Tata 1mg, the digital health and e-pharmacy arm of Tata Digital, reported a ₹276 crore consolidated loss in the financial year 2024–25, an improvement from its ₹313 crore loss in FY24. Despite the loss, the company’s revenue surged by over 20% to reach ₹2,392 crore, showcasing strong growth in its healthcare and diagnostic segments.
Revenue Growth Driven by Core Health-Tech Services
The revenue growth was fueled by Tata 1mg’s B2C services including e-pharmacy, lab diagnostics, and doctor consultations:
- Tata 1mg Healthcare Solutions: ₹2,016 crore revenue, ₹342 crore net loss
- Tata 1mg Technologies: ₹375 crore revenue, ₹65 crore net profit
These two divisions reflect the company’s strategy of combining high-growth digital services with operational optimization in specific verticals.
Focus on Expansion and Offline Strategy
In FY25, Tata 1mg entered an investment-heavy phase, focusing on expanding its offline presence across India, particularly in Tier-2 and Tier-3 cities. The company now spends ₹1.12 to earn every ₹1 in revenue—an improvement from ₹1.17 in FY24—signaling better operational efficiency and near-break-even unit economics.
Currently, Tata 1mg has:
- Over 500 offline stores
- Presence in cities like Gurugram, Jaipur, and Lucknow
- Growing customer base for diagnostics and express medicine delivery
Cash Burn and Fundraising Plans
Despite better unit performance, the company maintains a quarterly cash burn of ₹180–₹200 crore, supported by Tata Digital’s equity and internal reserves. Tata 1mg is also preparing to raise $300 million in external funding to further fuel its omnichannel growth strategy.
Tata Digital Group Performance
Tata Digital, which also operates BigBasket and Croma, reported a 31% reduction in total losses, down to ₹828 crore in FY25. Among all subsidiaries, Tata 1mg and Croma were top revenue contributors.
Summary
- Tata 1mg reported ₹2,392 crore in revenue, up 20% from last year
- Losses narrowed to ₹276 crore in FY25
- Unit costs improved significantly, showing better efficiency
- The company is preparing for offline expansion and a $300M funding round
