PharmEasy, the Indian online pharmacy, is currently valued at approximately $456 million, based on disclosures from its investor Janus Henderson. This represents a substantial 92% decrease from its peak valuation of $5.6 billion.
According to the latest filings for the period ending September, the British American global asset management firm’s Global Research Fund values its holding of 12.9 million shares in PharmEasy at $766,043. The fund initially invested $9.4 million to acquire these shares.
Despite PharmEasy securing over $200 million in new capital earlier this year and gearing up for an initial public offering next year, the valuation remains persistently low, as reported by StartupSuperb.
In 2023, PharmEasy initiated a rights issue in response to a funding shortage and the need to repay debt. A rights issue allows firms to raise funds by providing shareholders the chance to purchase shares at a lower price. If shareholders choose not to participate, they may lose portions of their existing ownership.
PharmEasy successfully raised $417 million through an oversubscribed rights issue, according to co-founder Dharmil Sheth. A regulatory filing in April 2024 revealed that the startup had secured around $216 million.
Backed by major investors such as Prosus, Temasek, TPG, and B Capital, PharmEasy operates one of India’s largest online pharmacies. The current valuation significantly undervalues PharmEasy compared to the $600 million it spent to acquire the diagnostic lab chain Thyrocare in 2021. To date, PharmEasy has raised over $1 billion.
The financial struggles for the startup began after it postponed its planned $843 million IPO initially set for November 2021. The company subsequently resorted to debt financing, including a challenging $300 million loan from Goldman Sachs, which became problematic as repayments and the acquisition of new equity became increasingly difficult in a declining market.
