IPO-Bound PharmEasy’s Loss Widened To INR 641.3 Cr, Revenue Soared To INR 2,360 Cr

Online epharmacy platform PharmEasy has filed its draft red herring prospectus (DRHP) for raising INR 6,250 Cr through the public market. Unlike others, the startup will be raising the entire offer amount through fresh issue of shares as its existing investors will not sell its existing shares. 

However, just like other Indian startups going for its public offering, PharmEasy has also reported a significant rise in its loss in the last financial year ended in March’21. 

API Holdings, the parent company of PharmEasy, during the first quarter of the ongoing financial year (April-June) posted a loss of INR 313.8 Cr. 

The startup’s total income or revenue soared to INR 1,207.2 Cr in three months of April, May and June of 2021. PharmEasy’s total expenses rose to INR 1,527 Cr during the same period. 

The DRHP further revealed that the purchase of stock-in-trade and other expenses contributed to the major chunk of the startup’s expenses in the first quarter of FY22. While the purchase of stock-in-trade was INR 1,234.6 Cr, other expenses stood at INR 215.5 Cr in the same quarter.

PharmEasy posted a loss of INR 641.3 Cr in FY21, a 91% increase from INR 335.2 Cr it posted in FY20. 

The company’s revenue soared from INR 737.4 Cr in FY20 to INR 2,360 Cr in FY21, a 220% jump.

Likewise, the company’s expenses widened to INR 2,980.9 Cr in FY21, a 147.8% rise from INR 1,084.4 Cr in FY20. The company spent INR 2,266.8 Cr in FY21 for purchasing stock-in-trade, against INR 699.1 Cr in FY20.

The employee benefits expense soared to INR 270.2 Cr in FY21 compared to INR 137.1 Cr in FY20.

The startup has a sanctioned debt worth INR 2,629.6 Cr, and as of September 15, it has an outstanding debt of INR 2,494.7 Cr.

Founded in 2015 by Dharmil Sheth and Dr Dhaval Shah, PharmEasy merged with its investor entity, Ascent Health, to form API Holdings in 2019. It brought in three new cofounders – Siddharth Shah, Hardik Dedhia, and Harsh Parekh, also known as Ghatkopar Gujju gang. 

To date PharmEasy raised close to around $1 Bn in total funding across 10 rounds. The healthtech unicorn counts Tiger Global, Prosus Ventures, IIFL Finance, Temasek Holdings, and B Capital, as its investors. In October, it had scooped up $350 Mn in a primary as well as secondary round.

Earlier this year, PharmEasy acquired 66.1% stake in major diagnostic chain Thyrocare for INR 4,546 Cr. In September, it had acquired a majority stake in healthcare supply chain startup Aknamed for INR 307 Cr.