PharmEasy’s valuation hits ₹3,800 crore after further decline

New Delhi (The Uttam Hindu): Health-tech company PharmEasy has experienced a significant drop in its valuation, now standing at around Rs 3,780 crore (approximately $456 million), down from its peak valuation of Rs 46,000 crore (around $5.6 billion). A filing from one of its investors, Janus Henderson, revealed that the company’s 12.9 million shares are now valued at Rs 6.3 crore (about $766,043), a sharp decline from the original investment of Rs 77 crore (approximately $9.4 million). This 92 per cent decline in PharmEasy's valuation underscores the financial difficulties the company has been facing. For FY24, its parent company, API Holdings, reported losses of Rs 2,533 crore, with revenue falling nearly 15 per cent to Rs 5,664 crore from Rs 6,644 crore in FY23. Despite these setbacks, the company reduced its losses by over 50 per cent in FY24, primarily due to a 79 per cent reduction in goodwill impairment charges.

PharmEasy, which was once valued at Rs 46,000 crore (approximately $5.6 billion), saw its valuation fall to around Rs 4,100 crore to Rs 4,900 crore ($500-$600 million) last year, after raising around Rs 9,000 crore (about $1.1 billion) in funding to date. The company has faced several challenges, including defaulting on a Rs 3,500 crore loan from Goldman Sachs in June last year and delaying its IPO filing in August 2022. In April 2023, PharmEasy underwent a 90 per cent reduction in its valuation after securing Rs 1,800 crore (approximately $216 million) in funding, led by Manipal Education and Medical Group (MEMG) and other investors. With its current valuation and ongoing financial struggles, PharmEasy's future remains uncertain as it continues to face significant losses, declining revenues, and a reduced presence in the market.