PharmEasy’s Valuation Slashed to $458 Mn by Janus Henderson

API Holdings, the parent company of the online drug marketplace PharmEasy, has witnessed a significant valuation cut, with global asset management firm Janus Henderson reducing its valuation to $458 million. This reflects a drastic markdown of around 92% from its peak valuation of $5.6 billion in 2021, as per a filing accessed from the U.S. Securities and Exchange Commission (SEC).

PharmEasy, headquartered in Mumbai, had already experienced a 90% valuation haircut in April 2023 when it raised INR 1,804 crore ($216 million) in funding led by Ranjan Pai’s Manipal Education and Medical Group (MEMG) and other existing investors. The valuation reduction comes amidst PharmEasy’s efforts to raise approximately INR 3,500 crore to repay its debt to Goldman Sachs, following a default on loan terms in June 2023.

The valuation markdown by Janus Henderson, which began with a 50% reduction in mid-2023, was further revised down by 91.8%. PharmEasy’s initial public offering (IPO) plans have also been deferred, citing adverse market conditions. The company had filed its Draft Red Herring Prospectus (DRHP) in November 2021 but withdrew the listing plan in August 2022.

The valuation cuts reflect a broader trend among tech-driven startups facing investor markdowns in 2024. Firms such as Gupshup, Swiggy, and Byjus have also seen their valuations reduced. Gupshup, for example, was recently valued at $500 million by Fidelity, down from over $1.4 billion in its last funding round.

Despite the challenging environment, PharmEasy reported a 16% year-on-year revenue growth to INR 6,643 crore in FY23. However, losses for the Temasek-backed company surged by 30.5% to INR 5,211 crore during the same period. The company is yet to file its annual financial statements for FY24.

Source: Entrackr