Tuesday, May 17, 2022

pharmeasy: Goldman Sachs likely to invest Rs 2,700 crore in PharmEasy parent

Informed people said Goldman Sachs is in talks to invest around $350 million (Rs 2,700 crore) in online pharmacy PharmEasy’s parent API holdings.

The people said the debt will carry an interest rate of 14-15% and will also have a pre-agreed equity upside, or premium to the rate, based on a potential increase in the company’s valuation. The money will primarily be used to refinance the debt taken by the company for the acquisition of Nidan Series.

Last year.

Goldman Sachs declined to comment, while an email sent to API Holdings remained unanswered at press time Tuesday.

People said the company could raise another $200 million after closing the deal with the US financial services company.

India’s largest online pharmacy, PharmEasy had planned to raise Rs 6,250 crore through an initial public offering of shares and use Rs 1,929 crore of it to pay off debt. A portion of the loan payment is due by August 2022. The IPO plans were put on hold due to weak market conditions.

PharmEasy was valued at $5.6 billion when a group of global funds invested $350 million in a pre-IPO round in October last year. New investors in PharmEasy include Singapore-based Amansa Capital, hedge fund Apa Capital, OrbiMed, Steadview Capital and Abu Dhabi-based sovereign wealth fund ADQ.

PharmEasy became a unicorn in April 2021, when Prosus Ventures, TPG and others led a $350 million Series-E round of funding at a $1.5 billion valuation. After acquiring a 66% stake in Thyrocare in June 2021, the valuation reached $4 billion.

Prosus Ventures (formerly Naspers Ventures) is the largest shareholder in the startup with a 12% stake. Singapore-based Temasek holds an 11% stake in the company, while TPG Growth holds 6.6% and Evermade Holdings holds 6%. 43 investors own about 70% of the company.

Originally published at Pen 18

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