[Update] PharmEasy Raises INR 1,700 Cr Debt By Pledging 61% Stake In Thyrocare

Update | September 24, 22:00 PM

Online pharmacy PharmEasy’s parent company API Holdings Limited has raised INR 1,700 Cr ($193 Mn) via redeemable non-convertible debentures (NCDs) to redeem existing debt obligations. 

To secure these financial obligations, API Holdings’ subsidiary and Thyrocare’s parent entity Docon Technologies pledged 3.23 Cr shares of Thyrocare to Catalyst Trusteeship Limited, the debenture trustee, as the collateral for the debt taken by API Holdings. These pledged shares represent 60.99% of Thyrocare’s total share capital.

According to Thyrocare’s filings, API Holdings had previously issued NCDs with a redemption value of INR 1,820 Cr, of which INR 1,545.4 Cr remained outstanding. The new issuance allowed the company to clear this liability in full.

Original | September 16, 14:03 PM

API Holdings, the parent company of PharmEasy, is planning to raise INR 1,700 Cr (about $193 Mn) via redeemable non-convertible debentures (NCDs) by pledging the shares of its listed diagnostic company Thyrocare. 

According to an exchange filing, API Holdings will use the fresh funds to clear the earlier debt which it raised via NCDs. The PharmEasy parent had earlier issued NCDs with total outstanding redemption value of INR 1,820 Cr, of which the current outstanding is INR 1,545.4 Cr.

The previous NCDs were issued by pledging the entire 71.06% stake held by Docon Technologies Pvt Ltd in Thyrocare. Docon is a promoter of Thyrocare, while API Holdings is its ultimate holding company. 

Following the release of the previously pledged shares, Docon will pledge up to 61% shares for API Holdings’ fresh fundraise via issuance of NCDs.

This comes at a time when PharmEasy continues to struggle with profitability and has seen many leadership changes in recent times. 

In August, PharmEasy founder Siddharth Shah stepped down as the CEO and was succeeded by Thyrocare MD and CEO Rahul Guha. Shah continues to be director and vice chairman at API Holdings. 

PharmEasy’s other cofounders – Dharmil Sheth, Dhaval Shah and Hardik Dedhia – stepped down from their executive roles prior to that in January this year to launch architectural and interior design startup All Home.  

Following the exit of Shah from CEO’s role, PharmEasy is effectively now controlled by Ranjan Pai’s Family Office, Prosus, TPG, Temasek and other investors. The onus on making the startup profitable is on the new leadership.

API Holdings managed to reduce its loss by 40% to INR 1,516.8 Cr in FY25 from INR 2,531 Cr in the previous fiscal year. However, its operating revenue was almost flat at INR 5,872.1 Cr as  against INR 5,664.2 in FY24. 

Meanwhile, Thyrocare, which was acquired by API Holdings in INR 4,546 Cr deal in 2021, has also seen leadership changes in recent times. In Q1 FY26, its CFO Alok Kumar Jagnani stepped down from his role and was promoted as the group CFO at API Holdings. Vikram Gupta stepped into Jagnani’s shoes. 

On the financial front, Thyrocare’s consolidated net profit rose 30.6% to INR 90.8 Cr in FY25 from INR 69.5 Cr in the previous year. Operating revenue rose 20.2% to INR 687.4 Cr from INR 571.9 Cr in FY24.