Cash-strapped Pharmeasy to raise Rs 3,500Cr via rights issue to repay loan to Goldman Sachs: Report

Mumbai-based omnichannel pharmacy chain, PharmEasy, is reportedly gearing up to raise Rs 3,500 crore in funding through a rights issue in the upcoming week. 

According to a Mint report, the move is aimed at repaying a significant portion of its outstanding loans to the global investment banking giant Goldman Sachs.

The report further added prominent investment firms such as Temasek, TPG Growth, Prosus Ventures, CDPQ, Eight Roads Ventures, LGT Lightstone, ADQ, Amansa, OrbiMed, and Sunil Kant Munjal’s family office have committed to invest up to Rs 2,000 crore. Furthermore, Ranjan Pai’s family office is speculated to invest Rs 1,200 crore in this round.

The development comes almost three months after the healthtech startup breached the loan covenant terms as it failed to raise Rs 1,000 crore equity.

PharmEasy's valuation journey has been a roller-coaster ride. Earlier this year, its valuation was slashed by almost 50% by its investors. Neuberger Berman marked down the company’s valuation by 21.4% to $4.4 billion in February, followed by Janus Henderson, which further adjusted the valuation to a mere $2.8 billion.

In August 2022, amidst turbulent market conditions, PharmEasy had to put its IPO plans on hold. Despite these setbacks, the company's scale witnessed a 2.5X growth, reaching Rs 5,729 crore during FY22. However, the losses also surged, amounting to Rs 3,992 crore during the same fiscal year.

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