PharmEasy, once a high-flying online pharmacy with a peak valuation of $5.6 billion, is now estimated to be worth just $456 million, marking a sharp decline.
This significant drop followed a filing by investor Janus Henderson, revealing a substantial devaluation of its shares. Janus Henderson’s 12.9 million shares in PharmEasy were marked down to $766,043, a sharp fall from their initial purchase price of $9.4 million.
PharmEasy’s Concerning Financials
The downturn is reflected in PharmEasy’s financials. Its parent company, API Holdings, posted a staggering loss of Rs 2,533 crore for the fiscal year 2024 (FY24), a 15% drop in revenue to Rs 5,664 crore compared to Rs 6,644 crore in FY23. While revenue suffered, the company managed to reduce its losses by over half, largely due to significant cuts in goodwill impairment charges.
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Despite having raised over $1 billion in funding to date, PharmEasy has faced mounting financial pressures. These difficulties were exacerbated when the company postponed an $843 million IPO that was initially scheduled for November 2021.
A $300 Million Loan
To weather the storm, PharmEasy turned to debt financing, securing a $300 million loan from Goldman Sachs, which later became difficult to repay. In 2023, the company issued a rights offering to raise capital, successfully raising around $417 million.
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A more recent filing from April 2024 indicates that PharmEasy also raised approximately $216 million, with support from the Manipal Education and Medical Group, along with existing investors.
