PharmEasy to raise Rs 750 crore through convertible notes

6 Oct 2022 , 06:58 AM

PharmEasy, the online pharmacy, has begun its rights offering to fund up to Rs750 crore through convertible notes. Convertible notes are debt instruments that can be later converted into equity. Startups like PharmEasy, that have still not achieved the path to profitability, are finding it difficult to raise funding. Therefore, instruments such as convertible notes are being used for raising funding. Recently, the company shelved its plan to float its IPO. It feared that given the current market sentiments, its IPO may not receive fair valuation.

The issue will be completed by the middle of October.

According to information from Tofler, the company’s founders, and previous backers Prosus Ventures and Temasek have subscribed to the issuance for shares valued at roughly Rs200 crore. Almost Rs100 crore and Rs90 crore in convertibles, respectively, have been purchased by Prosus Ventures and Temasek.

The parent company of PharmEasy, API Holdings, based in Mumbai, was most recently valued at $5.6 billion during a pre-IPO transaction.

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