Another Indian unicorn PharmEasy in deep crisis amid sharp valuation cut

New Delhi, July 5: The next big Indian unicorn that has reached troubled waters is online pharmacy startup PharmEasy which, according to multiple reports, is in deep crisis amid sharp valuation cut as it seeks new funding.

According to a TechCrunch report citing sources, PharmEasy which was once valued at $5 billion, plans to raise nearly $300 million at “a 90 per cent markdown from the previous valuation”.

PharmEasy will see its valuation nosedive to about $500-$600 million.

The report claimed that PharmEasy is raising fresh funds to pay its lender Goldman Sachs from which it borrowed nearly $285 million last year as it took a majority stake in diagnostics solution provider Thyrocare for over $600 million.

Money Control reported on Wednesday that Manipal Group has expressed interest in investing approximately Rs 1,000 crore for an 18 per cent stake in API Holdings, the owner of online pharmacy PharmEasy and promoter of Thyrocare.

“Furthermore, existing investors of API Holdings are expected to contribute approximately Rs 1,500 crore in a funding round led by Manipal Group,” said the report.

PharmEasy, which has substantially reduced its workforce in recent months, was yet to comment on the reports.

Leading startup news portal Inc42 earlier claimed that PharmEasy “has reduced its workforce by over 500 employees through resignations or layoffs since last year”.

“Former employees, some of whom have recently quit the company, allege that despite having five co-founders, PharmEasy has serious leadership gaps, adding to the chaos,” the report added.

In June 2021, API Holdings acquired automated accredited diagnostic laboratory Thyrocare Technologies. The company signed definitive documents to acquire 66.1 per cent stake in Thyrocare Technologies Ltd (Thyrocare) from Dr A. Velumani and affiliates at a price of Rs 1,300 per share aggregating to Rs 4,546 crore.