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.

PharmEasy faces second valuation markdown; looks to raise $50M-$100M: Report

Monday May 15, 2023,

2 min Read

Janus Henderson, a top investor in Pharmeasy, 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 Tracxn. The valuation cut was mentioned in a filing made last month, as per an ET report.

PharmEasy follows the likes of Ola, BYJU'S, Oyo, Pine Labs, and Swiggy, whose investors have also recently written down their valuations.

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.

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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