Tata 1mg is focusing aggressively on its business-to-business (B2B) vertical, which played a key role in driving the company’s growth in FY25. According to co-founder Gaurav Agarwal, the enterprise business now contributes 30% of the company’s total revenue and is growing at an impressive 100% year-on-year. “We see tremendous growth opportunities in corporate healthcare programs, especially in diagnostics,” he said in an interview with Mint.
B2B Offerings Cater to Corporate Healthcare Needs
As part of its enterprise services, Tata 1mg provides healthcare plans tailored for corporate clients. The company is actively expanding its diagnostic lab network and scaling services beyond metro cities. This expansion is part of its broader strategy to raise $300 million in external funding, although Agarwal did not disclose the current status or timeline of the fundraising round.
Retail and Diagnostics Expansion Accelerates
To complement its online services, Tata 1mg is also strengthening its offline presence. In the June quarter of FY26, the company opened 23 new retail stores, bringing the total count to 126 stores across 10 cities. “This takes us closer to our omnichannel vision,” Agarwal noted. Tata 1mg also launched four new diagnostic labs in Patna, Bhubaneswar, Ranchi, and Vishakhapatnam, with plans to invest further in its diagnostics infrastructure throughout the year.
Financial Performance Improves in FY25
As reported by Mint, the company posted a 22% rise in consolidated revenue, reaching ₹2,392 crore in FY25. This was up from ₹1,968 crore in the previous fiscal year, according to Tata Sons’ annual report. Its net loss narrowed to ₹276 crore, compared to ₹313 crore a year earlier, signaling a move toward improved financial health.
Omnichannel Delivery Model Powers Speedy Service
With the rise of quick medicine delivery, Tata 1mg is adopting a hybrid model to stay competitive. While companies like Swiggy, Zepto, and Flipkart (via its Minutes arm) have entered the medicine delivery space, Tata 1mg is leveraging its online platform and retail stores to reduce delivery time. “Our median delivery time in Gurugram is just 25 minutes,” said Agarwal. He added that the company is testing sub-15-minute deliveries in Ghaziabad, Jaipur, and Lucknow, where such models are operationally and economically viable.
Rising Competition Spurs Innovation
Tata 1mg is competing with established players like Apollo, PharmEasy (backed by Ranjan Pai), and Reliance-owned Netmeds. The company faces growing competition and evolving market dynamics. It continues to innovate through its omnichannel strategy and enterprise offerings.
Tata 1mg is deepening its diagnostics capabilities and expanding retail access. It’s also focusing on faster deliveries to strengthen its position in India’s evolving healthcare and pharmacy market.