A majority of the affected employees belonged to product technology, quality analytics and support verticals
The aggrieved employees were given multiple reasons for the layoffs, including restructuring, macroeconomic headwinds and the ongoing Russia-Ukraine war
PharmEasy is plagued with multiple issues such as mounting losses, a funding crunch and a shelved IPO plans
Months after its first round of layoffs, epharmacy startup PharmEasy has undertaken another round of retrenchment. Inc42 could not independently verify the actual number of employees impacted by the decision.
A majority of the affected employees belonged to product technology, quality analytics and support verticals. Alongside, employees from the overarching technology and design teams were also impacted.
The aggrieved employees were given multiple reasons for the layoffs, including restructuring, macroeconomic headwinds and the ongoing Russia-Ukraine war.
Employees at the firm were shown the exit door between November 29 and December 1. Sources told Inc42 that the layoffs took place while the office was shut and the employees were working from home.
Meanwhile, Business Standard has reported that the startup is planning to fire hundreds of employees as part of its cost-savings and consolidation drive.
“The company is facing a funding crunch due to which it is laying off its staff… It was trying to raise funding from Goldman Sachs, but that deal didn’t materialise,” a person familiar with the development told the economic daily.
The epharmacy firm could not be reached for a comment.
Problems Galore For PharmEasy
This is not the first time that the startup has laid off its employees. Earlier in June, Inc42 exclusively reported that API Holdings, the parent company of PharmEasy, laid off around 40 full-time employees at its electronic medical record subsidiary Docon Technologies.
The move to fire employees has come at the time when the startup is struggling to raise money. In September, it was reported that PharmEasy was in talks with multiple investors to raise $200 Mn-$300 Mn at a valuation of $3.8 Bn, a 30% cut from its last reported $5.6 Bn valuation.
One month later, reports again surfaced that the startup was looking to raise up to INR 750 Cr through convertible notes. Finally, after much ado, it secured an undisclosed amount of debt funding from Temasek-backed EvolutionX Debt Capital.
The startup has also been marred by a shelved INR 6,250 Cr initial public offering (IPO). It withdrew its draft red herring prospectus (DRHP) filed with market watchdog Securities and Exchange Board of India (SEBI) in August due to the market volatility and negative investor sentiment.
The move to defer IPO plans was also attributed to mounting losses reported by PharmEasy. The company posted a loss of INR 4,043 Cr in FY22, up from a loss of INR 1,552 Cr in FY21.
With the funding winter only expected to intensify in the coming months, it remains to be seen how the startup adapts to the new normal.