Healthcare needs are changing dramatically as people avoid visiting physical healthcare centers. They prefer quick access to healthcare services through digital solutions, resulting in a 2.5 times increase in e-pharmacy growth. Platforms like 1mg are gaining popularity by fulfilling the growing demand of people. Want to be part of this growing online healthcare market? Then, understanding the 1mg business model can help you grab profit-making opportunities.
Before investing in a medicine delivery app development, you need to understand everything about 1mg, how India's leading online pharmacy platform works, how the healthcare platform makes money, and more.
What is 1mg?
Also known as 1mg, Tata 1mg is an Indian leading healthcare platform. The generic drug delivery platform was started in 2012 as HealthkartPlus by:
- Gaurav Agarwal
- Vikas Chauhan
- Prashant Tandon
India's leading healthcare provider offers services like:
- E-pharmacy
- Diagnostics
- E-consultation
- Health content
Tata Digital acquired 55% of the 1mg stake. This helped the company with the rebranding of the platform as Tata 1mg. India's e-pharmacy market leader, Tata 1mg, has overtaken PharmEasy, helping the company to hold 31% of the market share.
In partnership with Vitonnix UK in 2024, 1mg launched products like Vitamin Sublingual Sprays. This represents that platforms continue to innovate. India's leading online healthcare platform partnered with Unicommerce to boost eCommerce efficiency in 2025.
1mg is a one-stop healthcare ecosystem. The platform serves more than 40 million users and gets 500 million monthly page views across India. If you're looking to satisfy the demand of millions of customers, investing in online medicine ordering app development is a smart choice to make. As the leading medicine delivery app development company, White Label Fox can help you build a strong digital presence.
Launch Your Online Pharmacy App Like 1mg
Turn the proven 1mg business model into your own scalable online pharmacy platform. Build a secure, compliant, and revenue-ready medicine delivery app designed for long-term growth.
1mg Business Model Explained: How India's Leading Online Pharmacy Platform Works?
Tata 1mg brings everything under a single digital platform. A proven 1mg business model is built on 3 pillars that help the company to gain top positioning in India’s online pharmacy market. These include:
- Convenience
- Trust
- Technology
Multi-service 1mg business model improves customer retention. It also creates diverse revenue streams, making the healthcare platform attractive from an investment perspective. Let's explore how India's leading healthcare platform works to meet the growing demand of customers efficiently.
How Does Tata 1mg Work?
An end-to-end India's leading online pharmacy platform, Tata 1mg, provides users with quick access to the following services:
- Medicines
- Diagnostics
- Other services
Check more on how the Tata 1mg platform works to provide a better experience to millions of users.
Quick Platform Access
Customers can visit 1 mg's official website or download the online pharmacy app from:
Google Play Store:
https://play.google.com/store/apps/details?id=com.aranoah.healthkart.plus
Apple App Store:
https://apps.apple.com/in/app/tata-1mg-healthcare-app/id554578419
After following a successful registration process, customers can sign in to India's leading online healthcare platform. The platform enables users to make an informed decision even before placing an order.
Search Healthcare Services
After successful registration & sign, users can easily search for:
- Prescription medicines
- Diagnostic lab tests
- Drugs over-the-counter
- Health supplements
- Online doctor consultations
AI-powered recommendations to users ensure frequent purchases. This improves affordability and helps you win users' trust.
Prescription Verification
For prescription-based medicines, users can use a mobile app to upload a valid doctor's prescription easily.
- 1mg verifies the prescription.
- Once approved, the medicine order moves to fulfillment.
This helps the online medicine delivery app to maintain regulatory standards while avoiding misuse.
Partner with Physical Pharmacy
Instead of owning a physical pharmacy, 1 mg-like platforms follow a partner-led model:
- Orders are routed to licensed pharmacies
- Lab test booking at a certified diagnostic center
The asset-light approach enables faster scaling across cities without heavy infrastructure investments.
Smart Order Fulfillment
Once the order is assigned:
- Medicines are quality-checked
- Sensitive medicines are handled carefully
- Optimized inventory using data analytics
Appointment slots are scheduled for diagnostics.
Insight into Delivery Status
Last-mile logistics partners who partner with 1mg deliver medicines to the customer's doorstep. With India's leading online pharmacy platform, users can:
- Track orders
- Receive delivery updates
- Contact the support team
Most of the medicine delivery orders are completed within 24 hours in metro cities.
Digital Payments
The platform enables customers to pay using multiple options, including the following:
- UPI
- Wallets
- Credit/debit cards
- Net banking
India's leading online healthcare platform enables you to offer subscription advantages and loyalty rewards, helping the company to gain more repeat customers.
Post-Delivery Support
Once delivery is completed successfully:
- Patients' prescriptions and invoices are stored digitally
- Order history helps with medicine refills
- Customer support helps you deal with queries and returns
- Digital platform enables users to access lap reports and consultation records
Data-Driven Retention
1mg uses AI to:
- Send refill reminders
- Personalized content
- Recommend preventive health tests
Data analytics and AI-based recommendations boost overall engagement.
Steady Expansion
Tata 1mg always keeps its ecosystem updated by:
- Adding new services
- Partnering with more service providers
- Integrating more wellness products
Considering the 1mg business model for starting your online medicine delivery business is a smart choice to make.
1mg Revenue Model: How India's Leading Online Healthcare Platform Makes Money?
Want to invest in an online pharmacy app development? If yes, having insight into a 1mg revenue model can help you generate huge profits. Instead of relying on a single income source, a 1mg revenue model enables the company to scale profitably. Let's break down how India's leading online healthcare platform makes money.
Online Medicine Sales: The Core Revenue Engine
Online medicine delivery remains the main source of the 1mg revenue model. Explore 1mg revenue flow right below:
- After successful registration, customers can upload prescriptions
- Orders are fulfilled through licensed partner pharmacies
- 1mg earns commission per order
Tata 1mg business model works well because the demand for pharmacies is growing steadily. A commission-based revenue model helps the company to:
- Increase reorder frequency
- Strong customer lifetime value
- Low churn once trust is built
Chronic patients contribute up to 60 to 70% of repeat pharmacy orders on digital health platforms.
Preventive Healthcare Services
The diagnostic imaging market is estimated to reach around 32 billion by 2030, expected to grow at 4% between 2025 and 2030.
Diagnostics is the highest-margin vertical for Tata 1mg, helping the company to make money through:
- Partner labs commission
- Margin on bundled preventive health packages
- Home sample collection premium pricing
A marketplace aggregator, 1mg connects users with NABL-accredited labs while managing bookings and digital reports. Early health screening complements medicine sales.
Online Doctor Consultations
Teleconsultation adds one more layer to the platform. Top monetization options include the following:
- Per-consultation fees
- Revenue sharing with doctors as well as hospitals
- Subscription-based consultation bundles
Besides direct revenue, doctors' consultations drive more profits. This creates a closed revenue loop.
Subscription Plans
The key strategy of the 1mg business model is recurring revenue. Membership & subscription offering includes the following:
- Annual health plans
- Discounted delivery
- Discounts on medicines and tests
Users who subscribe to the 1mg platform spend 3x more annually than non-subscribers. These care plans lock users into significantly increased monthly active users.
Pharmaceutical Brand Advertising
Ethical healthcare marketing helps Tata 1mg to monetize its user base. A few of the revenue sources include the following:
- Sponsored listings
- Brand promotions
- Data-backed visibility campaigns
As more users search for medicine and healthcare services, brand visibility converts at a higher rate compared to traditional digital ads.
Private Product Sales
To improve margins, Tata 1mg sells private-label health products. Private label sales include the following:
- Health devices
- Personal care essentials
- Vitamin supplements
Private labels can increase profit margin by 30% compared to other marketplace-only models.
Enterprise Healthcare Solutions
The B2B arm of 1mg serves:
- Corporates
- Insurance service providers
- Employee wellness programs
Revenue model:
- Contract-based pricing
- Bulk diagnostics and pharmacy orders
- Subscription wellness packages
This segment provides stable, long-term revenue with lower acquisition costs.
Medicine Delivery App Development: Why Develop an App Like 1mg?
The market size of healthcare services was approximately 13 trillion, which is expected to grow at 8% CAGR between 2026 and 2032. The steady growth of the market results in a 22 trillion healthcare services market by 2032.
The growing demand for healthcare services has made online pharmacy app development one of the revenue-generating opportunities globally. And India is not an exception.
Following the Tata 1mg business model helps you scale in the digital health space. An app like 1mg helps you operate smoothly and build a strong customer base in a short time.
If you're still wondering about why develop an app like 1mg, here are a few reasons to answer your question.
- Meet the Growing Demand for Online Medicines
- Provide Recurring Revenue from Repeat Users
- 1mg Business Model Helps You Scale As Your Business Grows
- You Get Lots of Money-Making Options
- Helps You Win Trust & Build Brand Loyalty
- You Can Offer Data-Driven Personalization & Preventive Care
- Get Support from Government & Digital Health Push
- Can Attract High Investor & Exit Potential
Online medicine ordering app development is a strategic business opportunity. With rising healthcare demand, this space provides immense potential for entrepreneurs like you.
A combo of tech and engaging UI/UX design used in 1mg clone app helps you generate money and deliver a wow experience.
Marketing Strategy of 1mg: How India's Leading Online Pharmacy Platform Built Trust?
Tata 1mg business model helps the company to build a strong user base. India's leading online healthcare platform spends heavily on flashy ads. The marketing success comes from its strategy that focuses on long-term user value.
The core of the 1mg marketing strategy is based on a simple idea: better health decisions = continuous business growth. Let's explore the 1mg market strategy to know how it wins the trust of millions of users.
Educate Before Promotion
Educating the targeted audience is one of the strongest pillars of the 1mg marketing approach. Besides aggressively pushing sales, 1mg invested in:
- Detailed medicine details
- Educate about drug side effects
- Ensure to provide dosage guides
- Generic alternatives and price comparisons
- Provide diseases & wellness content
Educational content improves organic traffic, especially for first-time buyers. This marketing approach helps 1mg to build its presence as a health advisor.
SEO-Driven Organic Acquisition
Search engine optimization plays a crucial role in how users discover online medicine delivery platforms.
1mg ranks highly for:
- Names related to medicines
- Health conditions
- Treatments & symptoms
- Generic drug alternatives
High-intent searches help the platform like 1mg to attract users already looking for healthcare solutions. This results in better conversion compared to paid ads.
User-centric Experience
Once users visit the platform, an online medicine delivery app like 1mg focuses on retention marketing.
Key tactics include:
- Refill reminders
- Subscription nudges
- Personalized notifications
- Health alerts
- Personalized recommendations
Not just new users, 1mg focuses on maximizing lifetime value with consistent engagement.
High Intent Performance Marketing
1mg also uses paid marketing in a highly targeted manner. Performance marketing includes the following channels:
- App install campaigns
- Retargeting ads for abandoned carts
- Google Search Ads (medicine-specific keywords)
Retargeting healthcare users = converting 2X higher compared to cold traffic. The primary focus of 1mg remains on high-intent users, helping the company to keep acquisition costs under control.
Build Credibility
Healthcare decisions need trust, and an app like 1mg leverages multiple trust signals:
- Transparent pricing
- Tata Group backing
- Prescription verification
- Licensed pharmacy partners
Tata Digital's post-acquisition helped the company accelerate its loyal customer base to a great extent.
Partnerships
1mg partnered successfully with:
- Diagnostic labs
- Hospitals
- Regional clinics
- Wellness programs for corporates
Successful partnerships helped the company to drive bulk users while lowering overall marketing costs.
Referral Programs
Word-of-mouth helps a healthcare platform like 1mg to gain more users. India's leading online pharmacy platform encourages referrals through:
- Wallet credits
- Subscription benefits
- Discount incentives
More happy users = more promotion through word-of-mouth marketing.
Regional-Focused Outreach
1mg adapts its messaging to scale across India. It helps to target:
- Tier 2 as well as Tier 3 cities
- Regional language users
- Elderly & non-tech-savvy customers
Regional-focused outreach helps the company to enter into growing markets beyond metros.
AI and Data-Driven Approach
Every promotion approach is all about data. A platform like 1mg uses data analytics and artificial intelligence to:
- Track user behavior
- Predict reorder cycles
- Improve conversion funnels
- Optimize content and offers
The 1mg marketing strategy proves that in healthcare, credibility beats hype. By prioritizing education and user experience, 1mg helps you develop a powerful brand that scales. For entrepreneurs looking to invest in medicine delivery app development, they can follow a similar strategy to 1mg.
Online Medicine Ordering App Development: Time to Launch Your App like 1mg Today!
The digital shift has made online medicine delivery apps a primary part of changing lives. With increasing demand for convenience, platforms like 1mg help to earn long-term user trust. For investors, online pharmacy app development presents a powerful opportunity to enter a fast-growing market.
Partnering with the right medicine delivery app development company = investing in an online delivery platform that grows with your business. It helps you develop a profitable venture like Tata 1mg for the future.
Are you all set to be part of a promising healthcare venture? Choose no other than White Label Fox.
Get Your Query Solved Quickly!
Looking to invest in online pharmacy app development, but have a few queries? Find your answer here quickly. But if you have any queries besides the listed ones, you can send them to [email protected]
Frequently Ask Questions
The 1mg business model is quite different from the traditional
brick-and-mortar approach. Unlike traditional pharmacies, an app
similar to 1mg facilitates users to order medicines online and get
them delivered to their place. The digital platform enables users to
access medicine details and make informed decisions.
Investors are drawn to the 1mg business model because it helps to:
- Build strong trust
- Scale architecture
- Predict demand
- Make money through different revenue channels
- Develop high customer lifetime value
- Build strong trust
- Scale architecture
- Predict demand
- Make money through different revenue channels
- Develop high customer lifetime value
The time for medicine delivery app development
differs based on your project requirements. With a ready-to-use app
like 1mg, you can start your online pharmacy business within a few
days. While complex medicine delivery solution development demands 3
to 6 months. To exactly know how long online medicine ordering app
development takes, please email your project requirements to us at
[email protected]
Yeah, definitely. Besides medicine sales, you can monetize through:
- Diagnostics
- Consultations
- Subscriptions
- Corporate wellness programs
- Advertising
- Private-label products
- Premium delivery services
The 1mg revenue model is great as it provides you with various
money-making options.
- Diagnostics
- Consultations
- Subscriptions
- Corporate wellness programs
- Advertising
- Private-label products
- Premium delivery services
Creating an app like 1mg with advanced functionalities can help you
grab massive success in the market. These features include:
- Quick registration
- Search medicine
- Upload the prescription to get it verified
- Track order
- Make payment
- Maintain digital records
- Push notifications
- Quick registration
- Search medicine
- Upload the prescription to get it verified
- Track order
- Make payment
- Maintain digital records
- Push notifications
An online pharmacy app development cost depends on various factors,
like:
- Medicine delivery app functionalities
- Tech & framework used
- UI/UX complexity
A rough calculation of the online medicine ordering app development
is around ₹8,000 to ₹18,000. For the exact quotation, you need to
share your project details at [email protected]
- Medicine delivery app functionalities
- Tech & framework used
- UI/UX complexity
Yes. The medicine delivery app enables you to start offering your
service in one city. After gaining success, you can expand to other
cities of your choice. Multi-city support enables you to launch
successfully across different areas of your choice with the medicine
ordering app.
Developing an app like 1mg = capturing the market advantages at the
earliest. Rapid growth and smartphone usage help you launch a
successful medicine delivery business in your region.
Yes, regulatory compliance is mandatory to operate an online
medicine delivery app. You must comply with local drug laws, partner
only with licensed pharmacies, ensure prescription verification,
follow data privacy regulations, and adhere to healthcare e-commerce
guidelines to operate legally and build user trust.
Deep Faldu – CTO
Author
As the Chief Technology Officer, Deep Faldu spearheads innovation at White Label Fox, ensuring seamless, scalable, and high-performance app solutions. His technical expertise, problem-solving skills, and commitment to excellence help businesses thrive in the competitive digital landscape. He continuously explores new technologies to enhance product efficiency and user experience.
