PharmEasy clocks Rs 2,533 crore in losses in FY24, revenue dips nearly 15 pc

New Delhi(The Uttam Hindu): Health-tech company PharmEasy has clocked Rs 2,533 crore in losses last fiscal (FY24), as it revenue declined almost 15 per cent at Rs 5,664 crore. The revenue from operations decreased 14.8 per cent to Rs 5,664 crore compared to Rs 6,644 crore in FY23, as per the financials of API Holdings, the parent company of PharmEasy. The company, which substantially cut its workforce last year amid deep valuation cuts, managed to reduce losses by over 50 per cent in FY24, owing to 79 per cent reduction in goodwill impairment charges.

The goodwill impairment is an accounting charge that companies record when goodwill's carrying value on financial statements exceeds its fair value. On a unit level, PharmEasy spent Rs 1.28 to earn a rupee in FY24, according to its financials. Once valued at $5 billion, PharmEasy saw its valuation nosedive to about $500-$600 million last year. It had raised around $1.1 billion t date. The cost of materials went down 14.8 per cent to Rs 4,880.3 crore in FY24 and the finance cost went up 9.4 per cent to Rs 727.9 crore. PharmEasy incurred Rs 699.3 crore on employee benefits last fiscal, which included ESOP cost worth Rs 221.8 crore.

Last year, the online pharmacy startup PharmEasy went into deep crisis amid sharp valuation cut as it sought new funding. The healthtech company also defaulted on a Rs 3,500 crore loan from Goldman Sachs in June last year, and even postponed its listing plan in August 2022 after filing IPO papers in November 2021. In April this year, it had a 90 per cent haircut in its valuation after it secured around $216 million funding led by Manipal Education and Medical Group (MEMG) and existing investors.