Indian online pharmacy startup PharmEasy has informed its existing investors that it plans to raise a new round of funding through a share placement at a 90% drop in valuation from its previous valuation, a person familiar with the matter said.
PharmEasy, one of India’s largest pharmaceutical companies, is racing to raise fresh capital to pay its lender Goldman Sachs, the person said.Indian newspaper The Economic Times debuts report development of.
PharmEasy’s parent company, API Holdings, was valued at more than $5 billion in its latest funding round in the second half of 2021.
The company, which provides a range of services, including tools and information on health, consulting, diagnostic and radiology testing, and treatment delivery, had filed for an $843 million IPO in November 2021 but later delayed the plans.
Citing internal documents, the newspaper reported that the start-up planned to raise fresh funds through a rights issue that would see its shares priced down to INR 5 from the previous INR 50.
Under the proposed terms, PharmEasy’s valuation would plummet to about $500 million to $600 million if the funding round materializes. The startup has raised more than $1.1 billion in total through equity and debt. It will also become the first major Indian unicorn to raise a down round.
PharmEasy has been seeking a new round of funding for several quarters, but has struggled to find takers even at a $2 billion valuation, TechCrunch reported earlier. The company did not respond.
The company’s backers include TPG, Prosus, Temasek, B Capital, Bessemer Venture Partners, Eight Roads Ventures, Steadview Capital and JM Financial.
money control report Separately, healthcare group Manipal plans to invest around $121.6 million in PharmEasy for an 18 percent stake in the Indian startup.