 "Prashant Tandon, co-founder and chief executive at 1mg")
Tata 1mg has overtaken PharmEasy to become the leader in India's e-pharmacy market based on gross merchandise value (GMV), according to a report by The Economic Times (ET).
In September 2023, Tata 1mg held a 31 per cent market share, up from 19 per cent in October 2022, while PharmEasy's share decreased to 15 per cent from around 33 per cent in the same period. The shift is attributed to PharmEasy's focus on profitability, leading to restrictions on marketing spending and cost-cutting measures. Earlier in August, it was reported that PharmEasy's management adjusted expectations to a "new reality," focusing on sustainable growth.
Other platforms like Flipkart Health Plus, Reliance-Netmeds, and Apollo have maintained their GMV market share at 15-18 per cent, according to data from third-party research firm Redseer.
Industry executives confirmed with ET that the transformation in market share dynamics has been underway since early 2023. PharmEasy's market share declined from 29 per cent in January to 20 per cent in May, while 1mg improved from around 21 per cent to 27 per cent during the same period.
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As earlier reported by Business Standard, when asked about expansion plans in July of this year, Tata 1mg co-founder Prashant Tandon stated that they were "fully focused" on India and would explore international avenues when the time was right. Tandon stated, "India is such a large market with so many opportunities and such so many pain points to solve. As a company we are fully focused on India, but I get outreach from various countries around the world that they would like to have models like Tata 1mg in their countries and it's very tempting."
At the end of the financial year on March 31, 2023, Tata 1mg reported a 160 per cent surge in operating revenue at Rs 1,627 crore from Rs 627 crore last, according to a report by Inc42. The net loss also doubled to Rs 1,254.9 crore in FY23 from Rs 526 crore in FY22. Total revenue declined to Rs 1,633.9 crore at the end of FY23 compared to Rs 644.8 crore in FY22. Total expenditure stood at Rs 2,893.6 crore in FY23, a 147 per cent jump from Rs 1,171 crore in the previous year.
