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

Entrackr · 4h

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.