Gaja Capital: PE Firm Gaja Capital May Lead $100 Million Round In 1MG

BENGALURU: Amid the consolidation in the e-pharmacy space, 1MG is in talks with Indian and global private equity funds for a new fund-raise of around $100 million as it prepares to fight rivals – Reliance Industries, Amazon and PharmEasy-Medlife combine. Private equity firm Gaja Capital is in an advanced stage of talks to lead the round at 1MG, while Tata Capital and Europe’s Partners Group are also looking to participate in the deal along with another ‘global private equity major’, said three sources briefed on the matter. 1MG’s existing investors, which include Sequoia Capital and World Bank investment arm IFC, are also expected to participate. “It is looking to raise north of $100 million and the talks have accelerated following the Reliance-Netmeds deal as it would require capital as a standalone player. Around $70 million of new capital has been finalised but 1MG is negotiating for a bigger cheque,” a person aware of the matter said. When contacted, 1MG co-founder and CEO Prashant Tandon, spokesperson for Gaja Capital and Tata Capital declined to comment on the matter. Since the start of the Covid-19 pandemic in March, 6 million new households tried online medicine taking the total to 9 million households, a recent Ficci-Redseer white paper said.