PharmEasy’s $5.6 billion value shrinks to $456 million, investor data shows

Indian online pharmacy PharmEasy’s valuation now stands at about $456 million, according to disclosures from its investor Janus Henderson, a 92% drop from its peak valuation of $5.6 billion.

The British American global asset firm’s Global Research Fund values its holding of 12.9 million shares in PharmEasy at $766,043, according to its latest filing for the period ending September. The fund had originally spent $9.4 million to acquire these shares.

The persistent low valuation comes despite PharmEasy securing more than $200 million in fresh capital earlier this year and preparing to file for an initial public offering next year, TechCrunch earlier reported.

This follows PharmEasy launching a rights issue in 2023 amid funding crunch and obligation to pay off a debt. A rights issue allow companies to raise capital by giving shareholders the opportunity to purchase shares at a discount. Depending on the terms, shareholders can also be wiped out of their previous ownership structures if they don’t participate in a rights issue.

PharmEasy raised $417 million through the rights issue that was oversubscribed, according to PharmEasy co-founder Dharmil Sheth. A regulatory filing in April 2024 showed the startup had secured about $216 million.

The startup, backed by Prosus, Temasek, TPG and B Capital, operates one of the largest online pharmacy in India. The current valuation places PharmEasy’s worth well below some $600 million it paid to acquire diagnostic lab chain Thyrocare in 2021. Pharmeasy has raised over $1 billion to date.

The startup’s financial challenges emerged after it deferred an $843 million IPO planned for November 2021. It then turned to debt financing, including a $300 million loan from Goldman Sachs that proved problematic as the company struggled with repayment and raising new equity in a deteriorating market.

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