PharmEasy Valued at $5.6 Billion in pre-IPO Round

Online pharmacy retailer PharmEasy closed its recent round of funding by accumulating about $350 million. This is a pre-IPO round of funding before the company files its Draft Red Herring Prospectus with SEBI. In its primary round of funding, the company raised nearly $204 million from multiple investors that include –

1. Amansa Capital of Singapore
2. ApaH Capital, hedge fund backed by Blackstone
3. Janus Henderson from the USA
4. OrbiMed
5. Steadview Capital
6. ADQ, i.e., Abu Dhabi’s Sovereign Wealth Fund
7. Neuberger Berman
8. Sanne Group

A Secondary Share Sales Also Took Place

Besides this funding, various sources have confirmed that API Holdings, which is the parent company of PharmEasy, has secured $130 to $140 million via secondary share sales. Additionally, nearly 20 senior employees of the firm have brought shares of about $5 million in this secondary share sale.

With this share sale, a number of early and angel investors have sold their stake in PharmEasy, while IIFL’s tech fund has picked up shares. Along with these, the company founders took part in this secondary share sale and acquired shares of about $40 million.

Even though various sources close to this matter confirmed these secondary share sales, no official statement is available yet. Furthermore, PharmEasy has not mentioned anything in its regulatory filings as well.

Third Major Round of Financing

This recent round of financing is the third biggest one that this company has concluded, taking its total funding amount to $1 billion, including its secondary share sales for this calendar year.

Even excluding the latest fundraising amount, PharmEasy has accumulated about $650 million since April 2021. It helped the company to move into the unicorn start-up bracket with a $1.5 billion valuation.

Moving ahead, in June 2021, when PharmEasy concluded the acquisition of Thyrocare, it had a valuation of $4 billion. Now, after this pre-IPO funding, this valuation jumped to $5.6 billion.

Major Restructuring in Place

Before the IPO, and post this latest round of funding, the company is restricting its shareholding ratios. Founders of PharmEasy will receive new stock options for wealth creation. Also, they will receive 9,987 stock options under Employee Stock Ownership Plan or ESOP.

Additionally, the company has also appointed five independent directors to its current board.

Bottom Line

With this pre-IPO funding out of the way, PharmEasy is now focusing on preparing to launch its IPO. If you are planning to invest in this upcoming public issue, stay subscribed to the Angel One Blogs for the latest news and updates.

Frequently Asked Questions

1. What is the tentative issue size of this PharmEasy IPO?

According to reports, this public issue of PharmEasy is likely to be worth about Rs. 3700 crores.

2. What was the size of PharmEasy’s acquisition of Thyrocare?

The acquisition of Thyrocare by PharmEasy had a valuation of about $611 million.

3. What is the price band of PharmEasy’s IPO?

There is no news available as of yet on the price band of PharmEasy’s IPO.