Online drugstore PharmEasy, which bought diagnostic chain Thyrocare in June, plans to raise $ 1 billion with a $ 9 billion valuation later this year, said two people who are directly aware of the company’s plans.
API Holdings Ltd, the parent company of PharmEasy, will raise the entire amount by selling new shares, the people said on condition of anonymity.
They said none of the existing shareholders, including their founders and investors, would sell their shares in the IPO.
Show full picture
Prosus Ventures, TPG Growth, CDPQ and Temasek are among PharmEasy’s top investors.
The decision not to pay out their shares during the IPO shows the confidence that PharmEasy’s investors have in the growth potential of the company and the online pharmacy market.
India’s largest conglomerates, including the Tata Group and Reliance Industries Ltd., have already incorporated the growth potential into the online pharmacy business.
“All of the listing proceeds will be used to pursue growth opportunities,” said one of the two above mentioned maturity goals. “
PharmEasy, founded in 2015 by Dharmil Sheth and Dhaval Shah, tripled its rating in less than four months.
In April, the company raised approximately $ 350 million from Prosus Ventures (formerly Naspers) and TPG Growth for a valuation of $ 1.5 billion, making it India’s first e-pharmacy unicorn.
On June 26th, API Holdings bought a controlling stake in Thyrocare Technologies for ₹4,546 million euros.
Mint reported in June that PharmEasy had hired Morgan Stanley and Kotak Mahindra Capital to advise on its IPO.
In May, PharmEasy completed the acquisition of smaller competitor Medlife to become India’s largest online pharmacy and health aggregator. It currently delivers drugs to more than 1,000 cities in the country and provides diagnostic testing services in all major cities and towns.
According to a report by consultant EY, the e-pharma space will grow to $ 18.1 billion by 2023 at an average annual growth rate of 18.1%.
The growth will be driven by an increase in the targeted acute care market due to more efficient last mile delivery through working with local pharmacies and hyperlocal delivery companies, the report said.
Several large corporations have entered the online pharmacy segment through acquisitions and organic gaming.
Last August, Mukesh Ambani-led Reliance Industries acquired a majority stake in Chennai-based online pharmacy Netmeds (Vitalic Health Pvt. Ltd) for ₹620 million euros.
In June, Tata Digital Ltd, a unit of Tata Sons Pvt. Ltd, a majority stake in digital health company and e-pharmacy 1MG Technologies Pvt. Ltd. In August last year, US online retail giant Amazon launched its online pharmacy in India.
Subscribe to something Mint newsletter
* Please enter a valid email address
* Thank you for subscribing to our newsletter.
Never miss a story again! Stay connected and informed with Mint. Download our app now !!