PharmEasy's Valuation Plummets to $456 Million: New Insights

New Delhi, Dec 26 (NationPress) The health-tech firm PharmEasy has experienced a significant decline in its valuation, now estimated at around $456 million, a stark contrast to its all-time high of $5.6 billion.

According to a filing from one of its investors, Janus Henderson, it has assessed its investment in the startup, comprising 12.9 million shares, at $766,043, as reported by TechCrunch.

The asset management company’s Global Research Fund had initially invested $9.4 million.

This new valuation reflects an astounding 92 percent drop from PharmEasy’s peak valuation.

For the fiscal year 2024, the online pharmacy reported losses of Rs 2,533 crore, with revenue falling nearly 15 percent to Rs 5,664 crore.

Revenue from operations saw a 14.8 percent decline, amounting to Rs 5,664 crore compared to Rs 6,644 crore in FY23, based on the financial statements of API Holdings, PharmEasy’s parent company. Following substantial workforce reductions last year amid severe valuation cuts, the company managed to decrease its losses by over 50 percent in FY24, mainly due to a 79 percent reduction in goodwill impairment charges.

Once valued at $5.6 billion, PharmEasy’s valuation plummeted to approximately $500-$600 million last year, despite raising around $1.1 billion to date. The online pharmacy faced a critical situation as it sought new funding amid significant valuation reductions.

Reports indicate that the health-tech company defaulted on a Rs 3,500 crore loan from Goldman Sachs in June of last year and even postponed its listing plans in August 2022 after submitting IPO documents in November 2021.

In April of this year, it experienced a 90 percent haircut in its valuation following a funding round of about $216 million led by Manipal Education and Medical Group (MEMG) alongside existing investors.