Once a unicorn, PharmEasy is now valued at just $450M
PharmEasy, one of the leading Indian online pharmacies, has witnessed a major drop in its valuation. According to Janus Henderson, an investor in the start-up, PharmEasy is now worth about $456 million. That's a whopping 92% decline from its peak valuation of $5.6 billion. The global asset firm's Global Research Fund said it values its 12.9 million shares in PharmEasy—acquired for about $9.4 million— at just over $766,000, as per its latest filing for the September-ending period.
PharmEasy's financial struggles and future plans
PharmEasy's financial woes came to light after it delayed an $843 million initial public offering (IPO) scheduled for November 2021. The company subsequently turned to debt financing, including a $300 million loan from Goldman Sachs. However, the strategy proved difficult as the company struggled with repayment and raising new equity in a declining market. Despite the challenges, PharmEasy raised over $200 million in fresh capital earlier this year and is set to file an IPO next year.
PharmEasy's rights issue and funding efforts
In 2023, PharmEasy launched a rights issue to raise capital and clear a debt. A rights issue gives companies a way to raise capital by giving shareholders an opportunity to purchase shares at a discounted price. Depending on the terms, shareholders can also lose their previous ownership structures if they don't participate in a rights issue. With this strategy, PharmEasy raised $417 million that was oversubscribed as per co-founder Dharmil Sheth's statement.
PharmEasy's market position and acquisition history
Backed by Prosus, Temasek, TPG and B Capital, PharmEasy runs one of India's largest online pharmacies. The latest valuation places PharmEasy's worth significantly below the $600 million it spent to acquire diagnostic lab chain Thyrocare in 2021. Despite its financial woes, the start-up has raised over $1 billion till date.
