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Pharmeasy co-founders step down to start new startup, Siddharth Shah to lead

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ISN Team
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Pharmeasy

PharmEasy, an online pharmacy company, is going through a significant leadership change as three of its co-founders step back from day-to-day operations. 

Dharmil Sheth, Dhaval Shah, and Hardik Dedhia have moved away from their management roles, while Siddharth Shah, the fourth co-founder, will continue to steer the company.

Leadership transition

In a statement, the three departing co-founders said they will stay involved with PharmEasy through board memberships or by serving as observers, but they will no longer manage daily activities.

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The company acknowledged that this shift has been planned for several quarters. The three co-founders plan to start a new venture in the consumer space, backed by some of the same venture capital firms that supported them at PharmEasy.

Siddharth Shah will now take charge as the chief executive and guide PharmEasy through its next phase of growth and challenges.

Fundraising and changing valuations

PharmEasy has raised around $1.1 billion from investors such as Ranjan Pai’s MEMG, Prosus and Temasek. In April 2024, it secured $216 million in a down round that valued the company at about $710 million on a post-money basis.

More recently, global asset management firm Janus Henderson reduced PharmEasy’s valuation by 91.8% to about $458 million. Despite these setbacks, the company says it has reached operational cash flow break-even and managed to cut its losses.

Financial performance

PharmEasy’s revenue from operations dropped by 14.8% in the last fiscal year, going from Rs 6,644 crore in FY23 to Rs 5,664 crore in FY24. 

However, the company brought its losses down by more than half to Rs 2,533.5 crore during the same period. These figures highlight the financial pressures the business is facing, along with a need for strategic adjustments to maintain its position in the health-tech market.

Reviving IPO plans

The leadership transition comes at a time when PharmEasy is working to restart its plans for an initial public offering. The company first filed draft papers for an IPO in November 2021 but withdrew them later, citing tough market conditions.

With its new leadership structure under Siddharth Shah, PharmEasy aims to stabilize operations, boost market confidence and prepare for a renewed public listing in the future.

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