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PharmEasy valuation slashed to $458 Mn by Janus Henderson

EntrackrEntrackr · 10m ago
PharmEasy valuation slashed to $458 Mn by Janus Henderson
Medial

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. PharmEasy’s investor and global asset management company Janus Henderson slashes the company’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 Pai’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 PharmEasy’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, Gupshup’s investor Fidelity marked down the SaaS firm’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.

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

EntrackrEntrackr · 1y ago
Exclusive: PharmEasy raises $216 Mn led by MEMG at $710 Mn valuation
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.

Ranjan Pai’s MEMG and 360 One get CCI nod to invest in API Holdings

EntrackrEntrackr · 1y ago
Ranjan Pai’s MEMG and 360 One get CCI nod to invest in API Holdings
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.

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

EntrackrEntrackr · 5m 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-founders—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—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." “The three of us—Dhaval, Dharmil, and Hardik—are starting something new in the consumer space. Reputed VCs who backed us at PharmEasy are backing us again,” the co-founders said in a joint statement. PharmEasy has raised approximately $1.1 billion to date from investors, including Ranjan Pai’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. PharmEasy’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.

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