PharmEasy seeks funding via rights issue at 90% valuation cut report says

Indian online pharmacy startup PharmEasy has informed its existing investors that it plans to raise a new round of funding via rights issue at a 90% markdown from the previous valuation, Indian newspaper Economic Times reported Wednesday.

PharmEasy, which earlier deferred a plan to go public, needs the new cash to pay its lender Goldman Sachs, the newspaper reported. PharmEasy was valued at $5.6 billion in its most recent funding round in the second half of 2021.

The startup plans to raise new financing through a rights issue that would value the price of its share at 5 Indian rupees, down from 50 earlier, the paper reported. At the proposed terms, if the round goes through, PharmEasy will see its valuation plummet to about $500 million to $600 million. The startup has altogether raised over $1.1 billion against equity and in debt.

PharmEasy has been looking to raise a new round for several quarters, but has struggled to find a taker at even $2 billion valuation, TechCrunch reported earlier. The company did not respond.

The firm counts TPG, Prosus, Temasek, B Capital, Bessemer Venture Partners, Eight Roads Ventures, Steadview Capital and JM Financial among its backers.

PharmEasy seeks funding via rights issue at 90% valuation cut, report says by Manish Singh originally published on TechCrunch


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