PharmEasy and Pine Labs’ Valuation Cut by Investor Neuberger Berman
- ByStartupStory | May 13, 2023
Neuberger Berman, a US investment firm, has lowered the value of its holdings in Api Holdings Limited, the parent company of PharmEasy, and fintech firm Pine Labs. This move follows a trend of investors writing down the valuations of startups such as Ola, BYJU’S, Oyo, and Swiggy.
Neuberger Berman has filed a regulatory document with the Securities and Exchange Commission in the US indicating that it reduced the valuations of Pine Labs and PharmEasy as of February 28, 2023. Pine Labs’ value was lowered from $5 billion to $3.1 billion, while PharmEasy’s value dropped from $5.6 billion to $4.4 billion, a decrease of nearly 21%.
After securing a $150 million funding round from Alpha Wave Global, Pine Labs was valued at over $5 billion. Meanwhile, PharmEasy raised $350 million in a pre-IPO fundraise and was valued at $5.6 billion in its latest round.
API Holdings had announced its intention to withdraw its draft red herring prospectus (DRHP) citing unstable market conditions in a regulatory filing made in November of the previous year. Meanwhile, Invesco upheld the valuation of Pine Labs despite devaluing its stake in Swiggy recently.
PharmEasy, backed by Temasek, has been facing challenges in raising funds despite a 40% reduction in its workforce, as per a report by DealStreetAsia. Nonetheless, as per a Mint report based on information from two insiders, PharmEasy has been improving its situation and achieved positive cash flow in April.
Prominent investors such as SoftBank, Blackrock, Invesco, and Vanguard have reduced valuations of Indian startups in recent times. According to filings with the Ministry of Corporate Affairs’ RoC, API Holdings Ltd, the parent firm of Pharmeasy, reported a net loss of Rs 3,992 crore in FY22, a significant increase from Rs 641 crore in FY21.
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