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Exclusive: PharmEasy raises $216 Mn led by MEMG at $710 Mn valuation

EntrackrEntrackr ยท 1y ago
Exclusive: PharmEasy raises $216 Mn led by MEMG at $710 Mn valuation
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API Holdings, the parent company of online drug dispenser PharmEasy, has raised Rs 1,804 crore ($216 million) led by Ranjan Paiโ€™s Manipal Education and Medical Group (MEMG) and existing investors. The fresh money, however, has come with a 90% haircut in valuation from the firmโ€™s peak worth. The board at API Holdings passed a special resolution to allot 18,63,74,897 cumulative convertible preference shares at an issue price of Rs 96.8 each to raise Rs 1,804 crore, its regulatory filing sourced from the Registrar of Companies (RoC) shows. MEMG family office led the round with Rs 800 crore while Prosus, Temasek, and 360 One Portfolios pumped in Rs 221 crore, Rs 183 crore, and Rs 200 crore, respectively. CDPQ Private Equity, WSSS Investments, Goldman Sachs, and Evolution Debt Capital cumulatively participated with Rs 400 crore in the new investment. The company will further convert the CCPSโ€“issued into equity shares in the ratio of (1:20), the filings added. As per TheKredibleโ€™s estimates, the company has been valued at around Rs 5,904 crore or $710 million (post-allotment). This is a nearly 90% haircut in valuation of PharmEasy which was once valued at $5.6 billion in 2021. Last month, the Competition Commission of India (CCI) cleared Ranjan Paiโ€™s investment in PharmEasy. The Mumbai-based firm has been trying to raise around Rs 3,500 crore since August last year to repay debt which it took from Goldman Sachs. PharmEasy defaulted on its loan terms with Goldman Sachs in June last year. Around the same time, the firmโ€™s valuation was reduced by around 50% by its investor Janus Henderson. Neuberger Berman also cut PharmEasyโ€™s valuation by 21.4% to $4.4 billion as of February 2023. The Dharmil Shah-led company is also among a list of startups which postponed its IPO plan after filing draft papers with market regulator SEBI. The firm filed DRHP in November 2021 and pulled back its listing plan in August 2022 citing tough market conditions. For the fiscal year ending in March 2023, PharmEasy saw a 16% growth in its revenue to Rs 6,644 crore against Rs 5,729 crore in FY22. As per startup data intelligence platform TheKredible, the company also curbed its losses to Rs 2,289.8 crore in FY23 as compared to Rs 2,731.7 crore in FY22. PharmEasyโ€™s travails have been well documented, especially post its acquisition of Thyrocare. The latest fundraising should put at rest any lingering doubts about the future of the firm. The move to expand into diagnostics has delivered very poor results for the firm, and the funding now will result in the promoters being diluted way more than they ever hoped to be. Itโ€™s a salutary lesson for many other startups, and the only silver lining is that the firm itself has survived, hopefully to get a second chance at making history.

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PharmEasy valuation slashed to $458 Mn by Janus Henderson

EntrackrEntrackr ยท 1y ago
PharmEasy valuation slashed to $458 Mn by Janus Henderson
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API Holdings, the parent company of online drug marketplace PharmEasy, has seen its valuation cut to $458 million. This is around a 92% valuation markdown from its peak of $5.6 billion in 2021. PharmEasyโ€™s investor and global asset management company Janus Henderson slashes the companyโ€™s valuation by marking down its investment value by 91.8%, the filing accessed from SEC shows. In April, PharmEasy saw a 90% haircut in its valuation when it raised Rs 1,804 crore ($216 million) led by Ranjan Paiโ€™s Manipal Education and Medical Group (MEMG) and existing investors. The Mumbai-based firm has been trying to raise around Rs 3,500 crore to repay the debt it took from Goldman Sachs. The Dharmil Shah-led firm already defaulted on its loan terms with Goldman Sachs in June 2023. Around the same time, Janus Henderson reduced PharmEasyโ€™s valuation by around 50%. Citing adverse market conditions, PharmEasy also deferred its initial public offering plan even after filing draft IPO papers. The firm filed DRHP in November 2021 and pulled back its listing plan in August 2022. Recently, Gupshupโ€™s investor Fidelity marked down the SaaS firmโ€™s valuation to $500 million. The company was valued at over $1.4 billion in its last equity funding. Swiggy, Byjus and a few other hyper-funded companies also saw valuation markdown by their investors in 2024. According to the startup data intelligence platform TheKredible, the firm posted a 16% year-on-year growth to Rs 6,643 crore revenue in FY23 while the losses for the Temasek-backed company surged 30.5% to Rs 5211 crore in the same period. The company is yet to file its annual statements for FY24.

PharmEasy raises fresh debt to clear Goldman Sachs loan after 90% valuation cut

EntrackrEntrackr ยท 2d ago
PharmEasy raises fresh debt to clear Goldman Sachs loan after 90% valuation cut
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PharmEasy raises fresh debt to clear Goldman Sachs loan after 90% valuation cut Mumbai-based healthtech unicorn PharmEasy has raised Rs 1,700 crore ($193 million) in debt funding led by 360 One, with participation from Alkram Ventures, MVS Ventures, Bennett Coleman, and other investors. The debt round is the firmโ€™s third infusion in four years, highlighting its ongoing dependence on high-cost borrowing to service earlier loans. The fresh debt infusion looks to complete repayment of its Goldman Sachs loan, which it had raised in May 2022 for Rs 2,700 crore at a high interest rate to refinance the Rs 2,200 crore Kotak Mahindra Bank loan used to acquire Thyrocare in 2021. The Goldman Sachsโ€™ loan had certain financial conditions tied to the companyโ€™s spending, which were breached in June 2023, though PharmEasy has continued to make all payments on time. The 360 One-led debt round involves the allotment of 1,700 non-convertible debentures at Rs 10 lakh each, as per the filings with the Registrar of Companies. 360 One contributed Rs 1,231 crore, while Micro Labs Limited put in Rs 210 crore. MVS Ventures invested Rs 78 crore, with Bennett Coleman and Alkram Ventures contributing Rs 50 crore and Rs 42 crore, respectively. Eight other investors, including Kyrush Investments, Medley Pharmaceuticals, and Mahalaxmi Trust, covered the remaining sum. This fundraising follows a $216 million capital raise in April 2024, which came at a 90% valuation haircut to $710 million from PharmEasyโ€™s $5.6 billion peak in 2021. That round, led by MEMG with participation from Prosus, Temasek, and others, was aimed at shoring up finances amid slowing growth and high debt obligations. Founded in 2019, PharmEasy offers pharmaceutical products, diagnostics, and teleconsultations through its web and mobile platforms. The company has now completed its third circle of debt, highlighting the ongoing challenge of balancing aggressive growth ambitions with high-cost leverage. Over the past two years, the company saw the exit of all co-founders and major changes at the leadership level, with Rahul Guha, MD and CEO of Thyrocare, taking over as MD and CEO of PharmEasy. For FY25, PharmEasy reported flat revenue of Rs 5,872 crore while cutting losses by 38% to Rs 1,572 crore from Rs 2,533 crore in FY24, signaling modest operational improvements even as debt obligations remain a critical focus.

PharmEasyโ€™s CEO Siddharth Shah steps down; Thyrocare chief Rahul Guha to take over

EntrackrEntrackr ยท 1m ago
PharmEasyโ€™s CEO Siddharth Shah steps down; Thyrocare chief Rahul Guha to take over
Medial

Siddharth Shah, cofounder and current MD and CEO of API Holdings, the parent company of PharmEasy and Thyrocare, is stepping down from his executive role. He will take on the role of Vice Chairman and Director of the company effective August 27, 2025. Rahul Guha, who currently serves as the MD and CEO of Thyrocare, will take over as the new MD and CEO of API Holdings. The announcement was made through regulatory filings by Thyrocare on Wednesday and is part of a wider leadership transition within the group. Guha will continue to lead Thyrocare alongside his new responsibilities at API. Before this appointment, Guha held the position of President of Operations at API, where he was responsible for overseeing integration and coordination across the group companies. For background, PharmEasy had acquired a majority stake (66.1%) in Thyrocare for Rs 4,546 crore in June 2021. Guhaโ€™s appointment reflects APIโ€™s focus on consolidating leadership across verticals as the company navigates a difficult funding environment and prepares for a possible public listing. API had filed draft IPO papers in 2021 but later withdrew them due to market conditions. PharmEasy has raised about $1.1 billion from investors including MEMG, Prosus, and Temasek. In April 2024, it secured $216 million at a steep 90% drop in valuation to $710 million. Earlier this year, PharmEasyโ€™s three cofounders Dharmil Sheth, Dhaval Shah, and Hardik Dedhia stepped back from the Bengaluru-based firm. They recently launched their new venture All Home. The company secured an undisclosed investment round led by Bessemer Venture Partners at a valuation of more than $120 million, with Siddharth Shah also participating as an investor.

PharmEasy's three co-founders step down, Siddharth Shah to lead

EntrackrEntrackr ยท 7m ago
PharmEasy's three co-founders step down, Siddharth Shah to lead
Medial

PharmEasy's three co-founders step down, Siddharth Shah to lead Online pharmacy company PharmEasy is undergoing a major transition as three co-foundersโ€”Dharmil Sheth, Dhaval Shah, and Hardik Dedhiaโ€”have stepped back from the Bengaluru-based firm. The fourth co-founder, Siddharth Shah, will continue to lead the company. According to a company statement, these co-founders will remain part of the group, align their shareholding for the long term, and continue as board members or observers. However, they have expressed their desire to reduce their involvement in active day-to-day executive responsibilities. In November last year, Entrackr approached the co-founders of PharmEasy for confirmation, but they firmly denied the claims. PharmEasy also said that this transition has been in the works for several quarters, adding, "We are delighted that the new team has achieved operational cash flow break-even and continues to handle all responsibilities effectively." โ€œThe three of usโ€”Dhaval, Dharmil, and Hardikโ€”are starting something new in the consumer space. Reputed VCs who backed us at PharmEasy are backing us again,โ€ the co-founders said in a joint statement. PharmEasy has raised approximately $1.1 billion to date from investors, including Ranjan Paiโ€™s MEMG, Prosus, and Temasek. In April 2024, the company secured $216 million in funding during a down round, valuing it at around $710 million (post-money). However, in September, global asset management firm Janus Henderson reduced its valuation by 91.8% to $458 million. This development coincides with PharmEasy's efforts to relaunch its initial public offering (IPO). The company initially filed draft papers for an IPO in November 2021 but later withdrew the application, citing adverse market conditions and strategic considerations. PharmEasyโ€™s revenue from operations declined by 14.8% to Rs 5,664 crore in FY24 from Rs 6,644 crore in FY23. Following cost-cutting measures, the company reduced its losses by 51.4% to Rs 2,533.5 crore in the last fiscal year.

Ranjan Paiโ€™s MEMG and 360 One get CCI nod to invest in API Holdings

EntrackrEntrackr ยท 1y ago
Ranjan Paiโ€™s MEMG and 360 One get CCI nod to invest in API Holdings
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Competition Commission of India (CCI) has approved a subscription to CCPS B of API holding by Ranjan Paiโ€™s MEMG (Manipal Education and Medical Group) and 360 One. The decision was followed by CCIโ€™s previous approval where multiple combination proposals entailed investments by marquee investors such as Goldman Sachs, Naspers, Temasek, and CDPQ in API Holdings Ltd., the parent company of PharmEasy. While the size of investment from Manipal Education and Medical Group) and 360 One are unknown, MEMG was reportedly looking to invest Rs 1,000 crore for an 18% stake in API Holdings. Pai backed PharmEasy in its early days and eventually exited from the Mumbai-based firm a few years ago. Pai will have three board seats after the investment, filing added. PharmEasy is trying to raise around Rs 3,500 crore for the past three quarters to repay debt which it took from Goldman Sach. The company defaulted on its loan covenant terms with Goldman Sachs and ever since then its valuation slashed nearly around 50% by its investor Janus Henderson. Prior to this, Neuberger Berman reduced PharmEasyโ€™s valuation by 21.4% to $4.4 billion as of February 2023. The company was valued at $5.6 billion at its peak. PharmEasy had reported improved financials in the last fiscal year as its revenue from operations grew 16% to Rs 6,644 crore in FY23. As per the startup data intelligence platform TheKredible, the cost cutting measures helped PharmEasy control its losses by 16% which stood at Rs 2289 crore in the fiscal year ending March 2023.

Exclusive: Droom India raises funds at $360 Mn valuation

EntrackrEntrackr ยท 6m ago
Exclusive: Droom India raises funds at $360 Mn valuation
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Exclusive: Droom India raises funds at $360 Mn valuation IPO-bound used car marketplace Droom is raising Rs 25 crore (approximately $2.9 million) in a fresh funding round co-led by India Accelerator (IA), and Rameshchandra Shah. The board at Droom has passed a special resolution to issue 15,62,500 preference shares at an issue price of Rs 160 each to raise Rs 25 crore or $2.9 million, its regulatory filings sourced from the Registrar of Companies (RoC) shows. India Accelerator and Shah both will invest Rs 5 crore each, Shirish Patel, CEO of Prudent Corporate Advisory (wealth management company) will invest Rs 3 crore and the remaining amount will be invested by other individual investors. The firm will use these proceeds for general corporate purposes, the filings said. As per Entrackrโ€™s estimates, the Gurugram-based firm will be valued at approximately Rs 3,097 crore or $360 million post-allotment. โ€œWe deliberately kept the valuation very low for the Indian subsidiary as a strategic move to give material upside to Indians who did not have opportunity to participate in the making of Droom in the past one decade,โ€ said Sandeep Aggarwal, Founder and CEO of Droom, in response to queries about the company's valuation. โ€œWe plan to raise a bit more capital in the near term at much higher valuation both in Singapore and Indiaโ€ฆโ€ Droom is an online marketplace for buying and selling used vehicles, including cars, motorcycles, and electric vehicles. It also offers rental services. According to startup data intelligence platform TheKredible, Droom has raised approximately $330 million from investors including 57 Stars, Seven Train Ventures, Lightbox, and Beenext. Droom reported Rs 85 crore in revenue for FY24, a 66% decline from Rs 253 crore in FY23. It managed to reduce its losses by 35% to Rs 40 crore in FY24. Droom is reportedly planning to file draft papers for a Rs 1,000 crore IPO in 2027, targeting a valuation between $1.2 billion and $1.5 billion.

Exclusive: Scaler to raise $40 Mn at reduced valuation

EntrackrEntrackr ยท 3m ago
Exclusive: Scaler to raise $40 Mn at reduced valuation
Medial

Exclusive: Scaler to raise $40 Mn at reduced valuation Upskilling platform Scaler is finalizing a $40 million fundraise, according to people familiar with the matter. This would be its first funding round in over three years, with the last one, a Series B, in February 2022. โ€œLighthouse is likely to lead a new funding round in Scaler, with some existing investors also participating. The deal is in its final stages and, barring any last-minute changes, is expected to close in a few weeks,โ€ said a source requesting anonymity due to the private nature of the discussions. Scaler has so far raised over $75 million across rounds from the likes of Lightrock India, Peak XV Partners, and Tiger Global. The firm last raised $55 million in Series B in February 2022 at a valuation of $710 million. However, sources indicated that this will be a down round, with Scaler's valuation expected to plunge to $350โ€“$370 million after the new funding. In response to Entrackrโ€™s queries, Scaler said it does not comment on market speculation, while Peak XV declined to comment. Lighthouse had not responded by the time of publication. Scaler specializes in upskilling college students and technology professionals by offering an intensive six-month computer science program. The course is delivered through live classes led by experienced tech leaders and subject matter experts. While Scaler has yet to disclose its FY25 numbers, the companyโ€™s revenue from operations grew to Rs 384.5 crore in FY24 from Rs 316.7 crore in FY23. Optimization of major expense categories helped the company reduce its overall losses by 58% to Rs 139 crore in FY24. At the beginning of FY25, Scaler laid off around 150 employees citing long-term growth and sustainability. It competes with Newton School, Masai School, and to some extent with Simplilearn. Many growth and late-stage startups are operating in a challenging funding environment, raising capital at flat or reduced valuations.

Exclusive: Proptech startup HouseEazy raises $4 Mn in Series A

EntrackrEntrackr ยท 1y ago
Exclusive: Proptech startup HouseEazy raises $4 Mn in Series A
Medial

HouseEazy, an online marketplace for pre-owned homes, has raised Rs 33.5 crore (around $4 million) in Series A led by Chiratae Ventures Fund with participation from Veena Jindal, Antler Innovation Fund, and IA Growth Opportunities Fund. The board at HouseEazy has issued a total of 3,915 shares at a face value of Rs 10 and premium of Rs 85,666 on preferential basis and by way of private placement, the companyโ€™s regulatory filings with Registrar of Companies show. Chiratae Ventures has invested Rs 29.62 crore, whereas Antler Innovation Fund invested Rs 2.86 crore. IA Growth Opportunities Fund and Veena Jindal invested Rs 76.25 lakh and Rs 29 lakh respectively. As per startup data intelligence platform TheKredible, HouseEazy has reached a valuation of Rs 156 crore post money (over $18 million). The company may raise more funds in this round and the valuation will vary accordingly. In December 2023, HouseEazy raised $1 million in a seed round led by Antler and picked up $370,000 in pre seed funding in June 2022. Founded in 2021 by Tarun Sainani and Deepak Bhatia, HouseEazy is building a full-stack, data driven technology platform to provide the best prices and instant liquidity to sellers and title-checked, refurbished, ready-to-move-in homes to buyers. The Noida-based company says that it uses a proprietary machine-learning algorithm with over 1.25 million data points to provide real-time price offers, eliminating the need for multiple meetings & negotiations for sellers. In December, HouseEazy claimed that it reached an ARR of Rs 250 crore (GMV) while maintaining profitability. The firm expects to hit Rs 1,000 crore ARR by March 2025 from the NCR market alone. For the fiscal year ending March 2023 (FY23), HouseEazy registered Rs 2.78 crore in operating revenue with Rs 44 lakh in loss.

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