PharmEasy postpones its IPO

22 Aug 2022 , 02:20 PM

PharmEasy has withdrawn its DRHP. People in the know have said that e-pharmacy startup PharmEasy has opted to delay its IPO till next year. The company will till then focus on  reducing cash burn. It has set the objective of achieving Ebitda breakeven in a year. Earnings before interest, taxes, depreciation, and amortization (Ebitda) has emerged as a key priority for investors and technology entrepreneurs as a result of a global funding slowdown.

The Mumbai-based company is also setting up a private equity financing round through a rights issue. Shares will be issued at Rs100 per share in this rights issue. The company had intended to raise Rs6250 crore from its IPO, before it withdrew its DRHP.  Like many startups, PharmEasy is finding it difficult to achieve profitability and positive cash flow from operations. Becoming EBITDA break-even will be the first step in achieving the challenging goal of sustainable profitablility. PharmEasy is also a unicorn. This means that it has been valued at more than $1 billion by private investors who have invested in it till now. 

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