PharmEasy IPO

PharmEasy is a healthcare platform for consumers that offer online medicines, diagnostic tests, and consultations with doctors. Dharmil Sheth and Dr Dhaval Shah founded this company back in 2015. The parent company API Holdings Limited undertakes this firm's business. PharmEasy’s supply chain capabilities, technology, and proper understanding and knowledge of the dynamic interplay among the various sub-segments of India's healthcare market make the firm stand out.

The PharmEasy platform provides consumers with digital tools and information on illness and wellness. Further, it offers teleconsultation services and delivers diagnostic tests and treatment protocols, including products and devices. This, in turn, enables API Holdings to reach a broad base of shareholders across this nation. In addition, the company is now set to float a public issue to list its shares on the bourses and awaiting SEBI’s approval.

Objectives of PharmEasy IPO

PharmEasy aims to raise Rs. 6,250 crores through an initial public offering (IPO). Further objectives of this initial public offering are stated below:

• Repayment or prepayment of existing borrowings will be made using Rs. 1,929 crores.

• Rs. 1,259 crores will be used to fund the initiatives for organic growth.

• Further, Rs. 1,500 crores will be used to aid inorganic growth. This growth is projected to be obtained through various strategic initiatives and acquisitions.

• The leftover amount will be used as support for general corporate purposes.

Why Should I Invest in PharmEasy IPO?

• PharmEasy provides a value proposition to all stakeholders. The company services 87,194 pharmacies, 3,261 wholesalers, 4,617 clinics and prescribing doctors and 926 hospitals. The online marketplace comprises 25 million registered users.
• This firm provides teleconsultation services to consumers who use its marketplace to fulfil their prescription needs. API Holding Limited uses this marketplace as a channel to offer diagnostic tests and chronic disease management services.
• PharmEasy is the largest digital brand in India to sell healthcare services and pharma products. The company licensed the brand “PharmEasy” to Axelia to operate the company’s marketplace in India. They also offer franchisor services such as marketing, fulfilment, and digital enablement for offline pharmacies owned and operated by franchisees.
• The company uses modern technologies, including LAMP, J2EE, MEAN stacks, and new-age programming constructs. The firm has also developed several custom algorithms with the help of data science models, AI/ML techniques, and specialised workflows to support its business.
• PharmEasy acquires and processes huge amounts of healthcare-related data daily. This data helps the company assist the stakeholders in making better decisions. Further, the data also assists in optimising their strategies to meet market demand and understanding supply trends.
• The M&A team of this company works to evaluate opportunities for mergers and acquisitions in the fragmented healthcare market of this nation. To consolidate the fragmented market and expand into new areas, this team has sought to acquire businesses that have complementary or synergistic strengths. This consolidation has further increased value for the stakeholders of PharmEasy across the healthcare ecosystem.
• PharmEasy considers its supply chain an asset and focuses on delivering real-time visibility into the company’s healthcare partners' demand patterns and granular supply. The firm also provides a live and dynamic view of its logistics network along with delivery timeframes for incoming orders. Utilising data from various segments of the physical supply chain, the company predicts delivery times.
• The PharmEasy marketplace performance during the COVID-19 pandemic demonstrated the resilience of its business model. The demand surge during the COVID-19 pandemic nearly doubled the active customer base to almost three million users within a few months. Among the other achievements of this firm, PharmEasy has also expanded its network of pharmacies to 18,587 areas or pin codes.

The parent company of PharmEasy, API Holdings, is seeking regulatory approval to float an initial public offering (IPO). It hopes to raise Rs. 6,250 crores through a fresh issue of shares. The company also plans to sell shares held by existing investors through a separate offer for sale. The retail investor category will be allotted 10% of the IPO's shares, while qualified institutional buyers will be allotted 75%. Other non-institutional investors will be allotted 15% of the IPO's shares.