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PharmEasy Raises INR 1,804 Cr At A 90% Valuation Cut

Inc42 · 1y ago

PharmEasy Raises INR 1,804 Cr At A 90% Valuation Cut

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.

Related News

India’s Pharmeasy seeks funding at 90% valuation cut

TechCrunch · 2y ago

India’s Pharmeasy seeks funding at 90% valuation cut

PharmEasy, valued at $5.6 billion, plans to raise a new round of funding via rights issue at a 90% valuation cut, according to a report. Read the full article on the source below to know more-

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

Entrackr

Entrackr · 1y ago

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

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.

PharmEasy valuation slashed to $458 Mn by Janus Henderson

Entrackr

Entrackr · 10m ago

PharmEasy valuation slashed to $458 Mn by Janus Henderson

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.

BYJU’S FY16-FY22: Incurred total losses of INR 13,000 Cr, splurged INR 8,000 Cr on ads

Inc42 · 1y ago

BYJU’S FY16-FY22: Incurred total losses of INR 13,000 Cr, splurged INR 8,000 Cr on ads

Indian edtech company BYJU'S has reported accumulated losses of INR 13,229 crore ($1.6 billion) between FY16 and FY22. The company's total expenditure during this period was INR 26,100 crore ($3.1 billion). Advertising costs accounted for a significant portion of the expenses, totaling INR 8,029 crore ($1 billion). BYJU'S has recently faced various challenges, including financial struggles and legal battles, prompting the company to launch a rights issue to raise $200 million from existing shareholders at a 99% valuation cut.

PharmEasy valuation crash may not hit Thyrocare founder Velumani’s stake

Economic Times

Economic Times · 2y ago

PharmEasy valuation crash may not hit Thyrocare founder Velumani’s stake

PharmEasy is faced with a steep cut in its valuation, with the new funding round pegging its shares at Rs 5 each compared to the Rs 50 per share that it secured in 2021. The huge fall in value has triggered questions about the fate of Velumani’s purchase of a 5% stake in the firm in 2021 when it was valued at $4 billion.

Infra.Market’s FY23 sales cross INR 11,000 Cr mark but profit slips

Inc42 · 1y ago

Infra.Market’s FY23 sales cross INR 11,000 Cr mark but profit slips

Mumbai-based construction solutions provider Infra.Market reported a surge in sales, crossing the INR 11,000 Cr mark in FY23. The startup recorded an operating revenue of INR 11,846.5 Cr, a substantial increase of 90% from the previous fiscal year. However, its net profit declined by 17% due to higher depreciation and amortization expenses. Despite this, Infra.Market's cash and cash equivalents grew by 138.5% to reach INR 251.1 Cr by the end of FY23. The startup has made significant acquisitions and has raised over $600 Mn so far, with a valuation of $2.5 Bn.

Fintech Startup Rupeek Raises INR 51 Cr In A Down Round

Inc42 · 1y ago

Fintech Startup Rupeek Raises INR 51 Cr In A Down Round

Gold loan provider Rupeek has secured INR 51 crore in a down round of funding from 360 One Large Value Fund (formerly IIFL Wealth Management) and BlackSoil. The funding round valued Rupeek at INR 1,785 crore ($213 million), a significant drop of 64.5% from its $600 million valuation in 2022. The funds will be used for growth, expansion, and general corporate purposes. Despite the challenging funding environment, Rupeek has narrowed its net loss and continues to serve customers across more than 40 cities in India.

Nazara Shares Slump 8.3% Intraday Post Board’s Nod To Raise INR 900 Cr

Inc42 · 10m ago

Nazara Shares Slump 8.3% Intraday Post Board’s Nod To Raise INR 900 Cr

Shares of a company experienced a slump, trading down 5.6% at INR 1028, following a decision to opt for a stock dilution to raise INR 900 Cr through preferential equity. This decline came at a time when the Sensex reached a peak of 0.98% after the Federal Reserve's announcement of a 50 bps rate cut, the first in four years.

Gurugram-based eyewear platform EyeMyEye raises $2.5M in a pre-Series A round: Report

IndianStartupNews

IndianStartupNews · 1y ago

Gurugram-based eyewear platform EyeMyEye raises $2.5M in a pre-Series A round: Report

Gurugram-based eyewear platform EyeMyEye has raised INR 20.8 crore (approximately $2.5 million) in a pre-Series A funding round. The funds will be used to expand the company's presence in the eyewear market and strengthen its operations. The round saw participation from investors including RBA Finance & Investments and Ashish Ramesh Kacholia. Following the funding, EyeMyEye's valuation has reached around INR 162 crore ($20 million). The startup has experienced significant growth since its inception and faces competition from established players like Lenskart and ClearDekho. EyeMyEye has raised a total of INR 90 crore ($11 million) to date.

Goldman may convert part-debt into equity in PharmEasy

Economic Times

Economic Times · 1y ago

Goldman may convert part-debt into equity in PharmEasy

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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