US-based investor Janus Henderson marks down PharmEasy’s valuation by half to $2.8 bn 

US-based investor Janus Henderson has marked down the valuation of online pharmacy unicorn PharmEasy’s parent company API Holdings by half to around $2.8 billion. Janus Henderson reduced the valuation of its holding in the firm by half which translates into an approximate valuation of $2.8 billion as of December 31, 2022, The Economic Times reported citing US Securities and Exchange Commission (US SEC) filings.  

The development comes after Neuberger Berman, a New York-based investment management firm, slashed PharmEasy’s valuation by 21 per cent to $4.4 billion as of February 28. PharmEasy was valued at $5.6 billion in its last funding round worth $350 million in October 2021. This funding round was led by Janus Henderson, Singapore’s Amansa Capital, and Blackstone-backed hedge fund ApaH Capital among others.  

With this, PharmEasy has joined internet-based companies like edtech firm BYJU’s, fintech Pine Labs, ride-hailing firm Ola, food and grocery delivery firm Swiggy, and others. These firms have witnessed a series of valuation markdowns by investors on the back of layoffs, cost-cutting measures by various companies and uncertain economic environment.  

Meanwhile, the company logged its first EBITDA profit of around Rs 14 crore and net revenue of Rs 600 crore in April this year since its inception. The company has a Rs 7,200 crore net revenue run rate based on its April numbers. PharmEasy also told its board that it was aiming to become cash-positive by September 2023.  

“They were at around minus Rs 80 crore of EBITDA during the same month last year. The company, which has been under pressure to cut costs, has been aggressively consolidating operating costs as well as streamlining its acquisitions which led to April numbers,” a person aware of the matter told the publication.  

On the back of PharmEasy’s first profit, API Holdings is in talks with its existing investor Canada-based pension fund Caisse de depot et placement du Quebec (CDPQ) and Abu Dhabi’s ADQ for a new round of fund raising. This round of fund raising is estimated to be worth around $50 million to $100 million and may happen via convertible notes.  

Also read: US-based Neuberger Berman marks down valuations of PharmEasy & Pine Labs

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