PharmEasy Co-Founders Depart, Siddharth Shah Takes the Helm

PharmEasy Undergoes Leadership Transition

PharmEasy, an online pharmacy company, is experiencing a significant change as three of its co-founders—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—have stepped down from the Bengaluru-based organisation. Siddharth Shah, the fourth co-founder, will remain at the helm of the company.

As stated in a company announcement, the departing co-founders will still be part of the group, aligning their shareholding for long-term interest and continuing their roles as board members or observers. Nevertheless, they have indicated a wish to lessen their involvement in everyday executive duties.

Last November, Startup Superb sought confirmation from PharmEasy’s co-founders regarding the developments, but they categorically rejected the claims.

PharmEasy stated that the leadership transition has been in progress for several quarters, expressing satisfaction that the new team has achieved operational cash flow break-even and is managing all responsibilities efficiently.

The co-founders remarked in a joint statement that the three of them—Dhaval, Dharmil, and Hardik—are embarking on a new journey in the consumer sector, with reputable venture capitalists who previously supported them at PharmEasy backing their new venture.

Moneycontrol was the first to report this development.

Funding and Valuation Insights

PharmEasy has successfully raised around $1.1 billion from a range of investors, including Ranjan Pai’s MEMG, Prosus, and Temasek. In April 2024, the firm closed a funding round of $216 million during a down round, subsequently valuing it at approximately $710 million (post-money). However, in September, global asset management firm Janus Henderson drastically cut its valuation by 91.8% to $458 million.

IPO Relaunch and Financial Performance

This leadership transition coincides with PharmEasy’s plans to relaunch its initial public offering (IPO). The company first filed draft documents for an IPO in November 2021 but later withdrew the application due to unfavourable market conditions and strategic considerations.

In terms of financial performance, PharmEasy reported a 14.8% decrease in revenue from operations, totalling Rs 5,664 crore in FY24, down from Rs 6,644 crore in FY23. Following the implementation of cost-cutting measures, the company’s losses were reduced by 51.4% to Rs 2,533.5 crore in the last fiscal year.