CCI Greenlights Ranjan Pai’s Stake Acquisition in PharmEasy

• ByStartupStory     |    March 27, 2024

Competition Commission of India (CCI) has given its nod to the proposal for stake acquisition in PharmEasy, a leading player in India’s e-commerce healthcare marketplace. The proposal involves various entities, including MEMG Family Office LLP led by Ranjan Pai and 360 ONE Group.

According to a filing with the CCI, the proposed transactions entail the subscription of class B compulsorily convertible preference shares of API Holdings Ltd, the parent company of PharmEasy, by the acquirers MEMG LLP and 360 ONE Group. Notably, 360 One is a Sebi-registered alternative investment fund managed by its investment manager, AML.

MEMG Family Office LLP, which belongs to the Pai family group, provides consulting and advisory services to clients in India. The move by MEMG LLP and 360 ONE Group underscores their confidence in the growth prospects of API Holdings and its subsidiaries.

API Holdings has been making significant strides in the healthcare sector, boasting a portfolio that includes PharmEasy, Docon, Thyrocare, and Retailio. The company reported a cumulative EBITDA of Rs 60 crore in the April to September period of 2023. Remarkably, it achieved profitability as per its goal set in November 2022, with positive EBITDA recorded for all six months of FY24.

Dharmil Sheth, Co-founder of API Holdings, shared the company’s journey towards profitability, highlighting a strong vision, teamwork, and relentless execution. Sheth emphasized, “We decided in November 2022 that we should be profitable in April 2023. Not move ‘towards’ profitability/not ‘try to be profitable’ – Just be ‘profitable’.”

The approval from CCI comes at a crucial juncture for PharmEasy and API Holdings as they continue to strengthen their position in the healthcare sector. PharmEasy, along with edtech firm BYJU’s, has been highlighted as significant assets in Prosus’s India portfolio. Despite initial challenges, both companies have demonstrated resilience and potential, with PharmEasy emerging as a key player in the e-commerce healthcare segment.

With the clearance from CCI, Ranjan Pai’s MEMG LLP and 360 ONE Group are poised to contribute to the growth trajectory of PharmEasy and API Holdings, further solidifying their presence in the Indian healthcare landscape.

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