PharmEasy could raise $250 million, but at half the valuation

13 Sep 2022 , 09:54 AM

A $250 million investment in API Holdings (the parent company of PharmEasy) is being considered by General Atlantic (GA), the Canada Pension Plan Investment Board (CPPIB), and the Abu Dhabi Investment Authority (ADIA), as per latest news reports.

The value of India’s largest online pharmacy, which has risen rapidly thanks to VC funding and 11 acquisitions to date, has decreased and may now be worth as little as $2.5-2.75 billion, which is less than half of its pre-IPO valuation of $5.4 billion in October 2021. It was pulled from the IPO around three weeks ago.

A convertible instrument will be used by current investors TPG Growth, Prosus Ventures, Temasek, and ADQ to contribute roughly $70-80 million to the most recent round, although the valuation and pricing will be decided by a new group of investors.

The fundraiser is being advised by Bank of America and Morgan Stanley. Negotiations are still ongoing on the valuation and the final investment amount. However, the new investors’ investment is anticipated to range between $200 million and $300 million.

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