PharmEasy Aims For $9 Billion Valuation Via Public Offering
- ByAyushi Ray | August 17, 2021
PharmEasy aims for $9 billion valuation via public offering. This online drugstore had previously bought diagnostic chain Thyrocare in June. API Holdings Ltd, the parent of PharmEasy, will raise the entire amount by selling new shares, the people said on condition of anonymity. They said none of its existing shareholders, including its founders and investors, will sell their shares in the IPO. Prosus Ventures, TPG Growth, CDPQ and Temasek are among PharmEasy’s top investors. The decision not to cash out their stakes during the IPO indicates confidence among PharmEasy’s investors about the growth potential of the company and the online pharmacy market. The growth potential has already drawn India’s largest conglomerates, including the Tata group and Reliance Industries Ltd, into the online pharmacy business.
“The entire proceeds of the listing will be used to pursue growth opportunities, the company plans to make more acquisitions in the near future and has been on the lookout for suitable targets that match its long term objectives.” As informed by a close source. PharmEasy, founded by Dharmil Sheth and Dhaval Shah in 2015, has seen its valuation jump threefold in less than four months. In April, it raised about $350 million from Prosus Ventures (formerly Naspers) and TPG Growth at a valuation of $1.5 billion, becoming the first Indian e-pharmacy unicorn. On June 26, API Holdings bought a controlling stake in Thyrocare Technologies for ₹4,546 crore. Mint reported in June that PharmEasy hired Morgan Stanley and Kotak Mahindra Capital as advisers for its IPO. In May, PharmEasy completed the acquisition of smaller rival Medlife to become India’s largest online pharmacy and healthcare aggregator. It currently delivers medicines in more than 1,000 cities in the country and offers diagnostic test services across all major cities and towns.
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