Navigating the Financial Rollercoaster: PharmEasy’s Remarkable Valuation Shift
In a surprising turn of events, Indian online pharmacy giant PharmEasy has seen its valuation plummet to about $456 million, a stark 92% decrease from its previous peak of $5.6 billion. This revelation comes from recent disclosures by its investor, Janus Henderson, a British-American global asset firm.
- Janus Henderson’s Global Research Fund values its 12.9 million shares in PharmEasy at $766,043.
- The fund originally invested $9.4 million for these shares.
This persistent low valuation lingers despite PharmEasy securing over $200 million in fresh capital earlier this year and preparing for an IPO next year, as reported by TechCrunch.
“The rights issue allowed us to raise $417 million, and it was oversubscribed,” shared PharmEasy co-founder Dharmil Sheth.
{Dharmil Sheth, Co-founder of PharmEasy}
In 2023, amidst a funding crunch and debt obligations, PharmEasy launched a rights issue—an opportunity for existing shareholders to purchase additional shares at a discount. However, failing to participate could dilute their ownership stakes significantly.
PharmEasy’s financial hurdles became evident after deferring an $843 million IPO originally planned for November 2021. Subsequently, the company turned to debt financing, including a challenging $300 million loan from Goldman Sachs.
With backing from major players like Prosus, Temasek, TPG, and B Capital, PharmEasy operates one of India’s largest online pharmacies. Yet, its current valuation is notably lower than the $600 million it paid for acquiring diagnostic lab chain Thyrocare in 2021.
Having raised over $1 billion to date, PharmEasy’s story is a testament to the complexities of navigating financial markets and strategic pivots in an ever-evolving economic landscape.
