Online pharmacy startup PharmEasy plans to raise $200 million at a lower valuation
- ByStartupStory | July 21, 2022
PharmEasy, an Indian startup providing pharmaceutical and medical services, is in talks with investors to raise $200 million, but at a valuation that might be as much as 15% or 25% less than the $5.1 billion it received last year. The latest investment round might lower PharmEasy’s valuation to $3.8 billion, and the sources said that a 2022 initial public offering (IPO) goal date has been postponed.
One source claimed that PharmEasy, backed by well-known investors like Prosus, TPG, and Temasek, is in talks to secure the additional funding at a valuation as much as 15% below last year’s, signalling mounting stress in India’s startup environment. According to a second source, the business, which provides online medical delivery and diagnostic test services, has instructed its bankers to consider making a cut of even 25% if it’s necessary to seal the sale.
According to the sources, the unstable domestic and international stock markets and growing investor scepticism about what they perceive to be absurdly high valuations have shaken up the Indian startup scene and made it challenging for PharmEasy to raise capital at the same or a higher valuation. They declined to give their names because the fund-raising discussions were personal.
About PharmEasy
PharmEasy was founded in 2015 and provides a smartphone application that links people with pharmacies that facilitate deliveries. Additionally, it permits the collection of samples at home for diagnostic testing in close-by labs. Temasek Holdings, Bessemer Venture Partners, Orios Venture Partners, and Eight Road Partners, among others, have all invested in the business. It has also received support from Nandan Nilekani.
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