PharmEasy faces second valuation markdown; looks to raise $50M-$100M: Report
US investor Janus Henderson has cut PharmEasy's valuation to $2.8 billion, the second markdown this year. The company is also looking to raise money after reaching operational profitability in April.
Monday May 15, 2023,
2 min Read
Janus Henderson, a top investor in, has slashed the healthtech firm's valuation to $2.8 billion. This is the second markdown in the valuation of the e-pharmacy this year.
Last week, US fund Neuberger Berman cut the valuation of API Holdings (parent of PharmEasy) to $4.4 billion, according to a regulatory filing with the Securities and Exchanges Commission in the US.
Janus Henderson invested in PharmEasy in September 2021, picking up a stake of 0.31%, according to market intelligence firm. The valuation cut was mentioned in a filing made last month, as per an ET report.
PharmEasy follows the likes of written down their valuations., , , , and , whose investors have also recently
In a regulatory filing in November last year, API Holdings said it intended to withdraw its draft red herring prospectus (DRHP) due to volatile market conditions.
The Mumbai-based firm is looking to raise $50 million-$100 million via convertible notes, ET reported. The firm is engaging with existing investors, Canada’s CDPQ, as well as Abu Dhabi’s ADQ, for a new round of funding.
PharmEasy recorded a positive EBITDA of around Rs 14 crore in April for the first time since inception, with a net revenue of Rs 600 crore, ET reported. PharmEasy Founder and CEO Siddharth Shah reportedly held a town hall with his staff recently and updated them on the company’s financial performance.
Shah is said to have told employees about the company’s plans to cross-sell more services on the platform in the ongoing financial year, including its diagnostic services through Thyrocare, which now contributes about 13% of its revenue as against around 3% earlier, the report said.
Based on its April numbers, PharmEasy now has a net revenue run-rate of Rs 7,200 crore.
Meanwhile, the e-pharmacy's average order value increased to Rs 1,300-Rs 1,900. The firm has also been closing down warehouses to optimise cost, the report stated.
Edited by Kanishk Singh