PharmEasy plans to raise Rs 3,500 Cr through right issue from current investors
The parent company of the online pharmacy PharmEasy, API Holdings Limited, plans to raise Rs 3,500 crore through the right issue from current backers despite the challenging market conditions.
In addition to Sunil Kant Munjal’s family office, Temasek, TPG Growth, Prosus Ventures, CDPQ, Eight Roads Ventures, LGT Lightstone, ADQ (Abu Dhabi’s sovereign wealth fund), Amansa, and OrbiMed have also expressed a desire to invest up to Rs 2,000 crore.
Ranjan Pai’s family office may invest Rs 1,200 crore during the round, according to Mint, which broke the news first. The term loan obtained from Goldman Sachs will be repaid with the new round of funding. PharmEasy allegedly violated the conditions of its loan covenant with Goldman Sachs in June.
This year, Pharmeasy’s backers have reduced the company’s estimated value by close to 50%. The company’s valuation was decreased by 21.4% by Neuberger Berman to $4.4 billion in February and by another $2.8 billion by Janus Henderson.
According to industry sources, the new round will value PharmEasy at around $500 million (pre-money). This essentially means that since its peak valuation of $5.6 billion in October 2021, the company’s value has decreased by 90%.
Due to the difficult market conditions, PharmEasy decided to postpone the launch of its IPO in August 2022. Even though the business has not yet submitted its annual financial report for the previous fiscal year, its scale increased 2.5X to Rs 5,729 crore during FY22. During the same time period, PharmEasy’s losses increased by 4.3X to Rs 3,992 crore.
