Online medical store PharmEasy has reportedly raised $350 million ahead of its initial public offering (IPO). The company is said to be underway to file its draft red herring prospectus (DRHP) soon to flag off the public issue.
According to the Ministry of Corporate Affairs (MCA) filings, the company closed nearly $204 million in primary funding from Singapore’s Amansa Capital, Blackstone-backed hedge fund ApaH Capital, US hedge fund Janus Henderson, OrbiMed, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, hedge fund Neuberger Berman and London’s Sanne Group, it added citing documents.
The company has raised another $130-140 million in a secondary issue, which offered exits to the company’s early backers. The report added that nearly 20 senior employees had bought shares worth $5 million as a part of the secondary share sale. The company is now valued at $5.6 billion.
PharmEasy’s founders — Dharmil Sheth, Dhaval Shah, Harsh Parekh, Hardik Dedhia, and Siddharth Shah — have also picked up shares worth $40 million in this funding round, as per sources. PharmEasy’s valuation crossed $4 billion after acquiring a majority stake in Thyrocare Technologies in June.
PharmEasy valued Thyrocare at 13.9x of FY21 earnings, 40x of EBITDA and 60x of profit. The online pharmacy has managed to pull a second big deal in less than a year after merging with smaller rival Medlife.
Pharmeasy delivers medicines and healthcare products in 1,000+ cities in India, covering 22,000+ pin codes.
It offers diagnostic test services across Mumbai, including Thane, Navi Mumbai, Kalyan & Dombivali, Delhi with Noida, Gurgaon, Faridabad & Ghaziabad, Chennai, Pune, Ahmedabad, and Gandhi Nagar, Surat, Vadodara, Lucknow, Kolkata, Hyderabad, Bengaluru, and Jaipur.
The Indian retail pharmacy segment is estimated to be worth $18 billion and is expected to touch $50 billion by 2025, data from the Department of Industrial Policy and Promotion revealed.