In a surprising turn of events, Indian e-pharmacy major PharmEasy's valuation has dropped substantially according to new estimates provided by one of its key investors. London-based global asset management firm Janus Henderson, in a recent filing, has pegged PharmEasy's valuation at just $458 million – a massive 92% decrease from its all-time high of $5.6 billion achieved in 2021.
This is quite unexpected given that PharmEasy had successfully raised $417 million through a rights issue earlier this year which saw oversubscription from existing shareholders. However, Janus Henderson's filing clearly suggests that investor sentiment has drastically changed in the past year. The current valuation is even lower than the amount PharmEasy spent in acquiring diagnostic chain Thyrocare in 2021.
Founded in 2015, PharmEasy has so far raised close to $1 billion from marquee backers like Temasek, TPG and Prosus. It offers an integrated online platform for drugs, medical devices, lab tests and doctor consultations. While the company had ambitious IPO plans last year, it has since postponed those and relied more on debt funding. A $300 million loan from Goldman Sachs also increased PharmEasy's financial pressures.
The declining fortunes of various high-growth startups globally amid the market turmoil is reflected in PharmEasy's case as well. Another Indian news aggregator Dailyhunt's valuation has also been written down by its investor 360 One. It will be crucial to see how PharmEasy manages its balance sheet and regains investor confidence in the present challenging economic climate.
