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Goldman may convert part-debt into equity in PharmEasy
Economic Times
·
1y ago
Medial
Goldman Sachs is reportedly considering converting a portion of the debt it extended to online pharmacy PharmEasy into equity. This move follows PharmEasy's upcoming rights issue of about $424 million (Rs 3,500 crore), which is due to launch on September 4. Goldman, which had provided a $300 million loan to PharmEasy, is said to be in discussions to convert around $38-40 million of debt into equity. The rights issue is anticipated to value PharmEasy at $500-600 million, significantly lower than its peak valuation of $5.6 billion in 2021.
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PharmEasy Raises INR 1,804 Cr At A 90% Valuation Cut
Inc42
·
1y ago
Medial
PharmEasy has raised INR 1,804 Cr ($216.2 Mn) in a down round led by the family office of Manipal Group chairman Ranjan Pai. The funds were raised through a rights issue at a 90% valuation cut compared to the startup's peak valuation in October 2021. The company plans to convert the cumulative convertible preference shares (CCPS) into equity shares. This funding comes after the Competition Commission of India approved investment proposals from several investors for API Holdings, PharmEasy's parent company. The funds will be used to clear a significant portion of the company's outstanding debt to Goldman Sachs.
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CCI clears Ranjan Pai’s investment in PharmEasy
Economic Times
·
1y ago
Medial
The Competition Commission of India (CCI) has approved Ranjan Pai's investment in online pharmacy PharmEasy. Pai's investment is part of a Rs 3,500-crore funding round through a rights issue. Additionally, an investment from 360 One in PharmEasy has also been cleared. This investment positions Pai as one of the largest investors in the Mumbai-based firm. PharmEasy has been addressing debt taken from Goldman Sachs through the rights issue. Pai's strategic direction is expected to guide PharmEasy's growth in the face of competition from rivals like 1mg, Flipkart Health Plus, Apollo, and Netmeds.
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Exclusive: PharmEasy raises $216 Mn led by MEMG at $710 Mn valuation
Entrackr
·
1y ago
Medial
API Holdings, the parent company of online drug dispenser PharmEasy, has raised Rs 1,804 crore ($216 million) led by Ranjan Pai’s Manipal Education and Medical Group (MEMG) and existing investors. The fresh money, however, has come with a 90% haircut in valuation from the firm’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 CCPS–issued into equity shares in the ratio of (1:20), the filings added. As per TheKredible’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 Pai’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 firm’s valuation was reduced by around 50% by its investor Janus Henderson. Neuberger Berman also cut PharmEasy’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. PharmEasy’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. It’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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Naspers, Temasek get CCI approval to purchase stakes in PharmEasy
Livemint
·
1y ago
Medial
The Competition Commission of India (CCI) has approved the proposals of various entities, including Naspers and Temasek, to purchase stakes in PharmEasy. The approved entities include Naspers Ventures, Temasek Holdings, CDPQ Private Equity Asia, DBS Group Holdings, and Goldman Sachs India Alternative Investment Trust. The proposed deals involve the acquisition of additional shares through a rights issue and subscription of compulsorily convertible preference shares (CCPS) of API Holdings, the parent company of PharmEasy.
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Convertible Notes: A More Flexible Approach To Early-Stage Fundraising?
Inc42
·
11m ago
Medial
Convertible notes allow investors to convert debt into equity at a later date. This provides startups with quick capital and better rights upon conversion, while also allowing investors to bypass the complexities of early-stage investments. Issuing convertible notes is typically faster for startups as simpler documentation reduces legal fees and speeds up the fundraising process.
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Ranjan Pai’s MEMG and 360 One get CCI nod to invest in API Holdings
Entrackr
·
1y ago
Medial
Competition Commission of India (CCI) has approved a subscription to CCPS B of API holding by Ranjan Pai’s MEMG (Manipal Education and Medical Group) and 360 One. The decision was followed by CCI’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 PharmEasy’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.
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Carlyle Aviation to write off $40 mn of SpiceJet's lease arrears
VCCircle
·
10m ago
Medial
Private equity firm Carlyle Group's aviation investment and servicing unit will write off $40.2 million of Indian budget carrier SpiceJet's lease arrears and convert $30 million of the arrears into equity. This move comes after SpiceJet's recent announcement that it would convert dues to Carlyle Aviation into equity and debentures, as it struggles to fully restore operations and compete with rivals IndiGo and Air India. Carlyle Aviation's stake in SpiceJet will significantly increase as a result of the conversion.
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Voda Idea to seek to convert dues into equity after moratorium ends: JP Morgan
Livemint
·
1y ago
Medial
Vodafone Idea plans to ask the Indian government to convert the annual installment for spectrum payments due in FY26/FY27 into equity. The telecom company has recently raised ₹18,000 crore in a follow-on public offer and believes it will have enough cash to repay government dues starting in FY28. Vodafone Idea currently owes the government $24.5 billion for spectrum purchases and adjusted gross revenues. It proposes converting a portion of this debt into equity in order to ease its cash crunch. The government is already the largest shareholder in Vodafone Idea with a 24.27% stake, which could increase to 35% if the conversion is approved.
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After Vodafone Idea relief, Airtel reportedly seeks equity swap for ₹41,000 crore dues - After Vodafone Idea relief, Airtel reportedly seeks equity swap for ₹41,000 crore dues BusinessToday
Business Today
·
2m ago
Medial
Bharti Airtel has requested India's Department of Telecommunications to convert ₹41,000 crore of its adjusted gross revenue (AGR) dues into equity, similar to Vodafone Idea's recent move, potentially giving the government a 2–4% stake. Airtel is focusing on AGR dues, while its total outstanding dues to the government stand at over ₹95,000 crore. The move follows the government's decision to convert Vodafone Idea's spectrum dues into equity. Airtel continues to manage its spectrum and financial commitments.
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Manipal group's Ranjan Pai likely to invest $250-300 million in Byju's subsidiary Aakash Institute
Economic Times
·
1y ago
Medial
Manipal Education and Medical Group chairman, Ranjan Pai, is planning to invest $250-300 million in Aakash Institute, a subsidiary of edtech company Byju's, to clear the outstanding debt of Byju's to US-based Davidson Kempner. In May, Byju's had entered into a structured credit deal with Davidson Kempner for $240.6 million, which led to a dispute. Pai's investment would increase his stake in Aakash, and he may bring in other private equity firms to invest as well. This investment is part of Pai's growing presence in new-age companies, including FirstCry and Bluestone.
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