Valuation Crunch: Pharmeasy in talks to raise funds at 90% lower valuation

Online health tech startup Pharmeasy, which recently faced a 50% valuation cut by investor Janus Henderson, is reportedly looking to raise Rs 2400 crore from investors at a 90% lower valuation.

According to an ET report, the company would raise funds via rights issue to repay its debts which it took from Goldman Sachs.

The report further added that API Holdings, which operates PharmEasy and Thyrocare, plans to issue new shares at a significant 90% discount. The current stock price stands at Rs 50 per share, but the upcoming rights issue will price each share at just Rs 5.

According to MoneyControl, the Manipal Group is looking to invest Rs 1,800 crore for an 18% stake in the company, with expectations to bring its Chairman, Ranjan Pai, into API Holdings' board of directors. Manipal Group, a major stakeholder in Manipal Hospital, aims to strengthen its position in the healthcare sector with this investment.

TPG and Temasek, current shareholders of PharmEasy, will lead the rights issue, which is expected to set API Holdings' valuation between $500 million and $600 million. 

Founded by Dharmil Sheth and Dhaval Shah in 2015. In April 2021, In 2021, PharmEasy acquired a 66% stake in Thyrocare, a laboratory testing startup. The healthtech startup bought this stake for Rs 4,546 crore. This purchase was made possible by a loan that PharmEasy took from Kotak Mahindra Bank.

To repay this loan, PharmEasy borrowed Rs 2,280 crore ($285 million) from Goldman Sachs in August 2021. This five-year loan had an annual interest rate of 17% to 18%.

PharmEasy had plans to repay Rs 2,000 crore of its debt from the funds it expected to get from a planned Rs 6,250 crore Initial Public Offering (IPO). But, the company's plan to go public was delayed by two years to 2025.

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