Online pharmacy major Tata 1mg aims to expand its digital footprint nationally and turn profitable in the next two years, Prashant Tandon, co-founder, and CEO of Tata 1mg said.
“I think we are looking at a two to three-year horizon of profitability. On the pharmacy side, the gross-margins expansion comes with scale. Our business also has a very large advertising opportunity, we are the largest digital healthcare platform in terms of traffic. Around 40 million monthly users come to Tata 1mg every month, unique users for healthcare content and services. Diagnostics is a very decent margin profile business,” Tandon said in an exclusive conversation with Udayan Mukherjee, Global Business Editor, Business Today.
On the future plans of Tata 1mg, Tandon said the company services around 20,000 pin codes, and as of now, somewhere around 35 to 40 per cent of the business comes from beyond the Tier-1 cities. Without diagnostic services, Tata 1mg covers around 45 cities today. “We aim to grow that footprint pretty actively. We are setting up the infrastructure for that. So, we are constantly expanding our footprint. Pharmacy, I think is fairly decent in terms of our coverage. Diagnostics will keep on growing. Hopefully, we will be covering more than 100 cities soon,” he said.
According to Tandon, the online healthcare industry has around 10-12 million consumers who shop for medicines online. “In terms of market size, Tata 1mg will be probably around 3.5-4 per cent of the overall pie today. And, we are rapidly growing.”
Talking about the revenue generation from medicine delivery, diagnostics, and online consultations, Tandon said, the maximum number of consumers transact for the pharmacy. However, on the margins side, it is diagnostics that significantly has a strong margin profile.
Tata 1MG provides online delivery of health and wellness products, medicines, diagnostics services, and teleconsultation to customers.
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