PharmEasy Raises $ 350 Million in Series E; enter the unicorn club

Online pharmacy company PharmEasy, owned by API Holdings, has raised $ 350 million in its Series E led by Prosus Ventures and TPG Growth. Existing investors, including Temasek, CDPQ, LGT Lightrock, Eight Roads and Think Investments, also entered the round.

According to the company, it closed a combination of primary and secondary financing of $ 323 million with an additional $ 27 million to be raised soon.

PharmEasy had been in talks with major investors for six months. Although the company has not disclosed its valuation, sources familiar with the development estimate it to be around $ 1.5 billion. In February, the second largest pension fund in Canada, the CDPQ CCI received not to acquire a 2% stake in the parent company of PharmEasy.

EntrackrPharmEasy sources said that PharmEasy is close to reaching $ 1 billion in the deal.

PharmEasy has also filed documents with the MCA which indicate that Prosus, Temasek, EightRoad Ventures, F Prime and five people collectively invested Rs 1,260 crore or $ 170 million in this cycle. Prosus invested Rs 1,120 crore in total while Temasek infused Rs 35.71 crore.

EightRoad Ventures and F Prime invested Rs 19.04 crore and Rs 4.76 crore, respectively.

Besides institutional investors, PharmEasy has raised Rs 80 crore from individuals such as Siddharth Bhaskar Shah, Hardik Kishor Dedhia, Dhaval Rajesh Shah, Dharmil Nirupam Sheth and Harsh Shailesh Parekh. The investment amount of TPG Growth and other investors mentioned in the press release could not be determined.

PharmEasy will use the fresh recipes to deepen its market engagement with more than 100,000 pharmacies and over 20 million patients and to expand the range of services.

PharmEasy essentially offers discovery, last mile delivery and connectivity tools to over 60,000 pharmacies and 4,000 physicians in 16,000 PINs across India. It also provides working capital credit to pharmacists.

Over the past year, the online pharmacy space has seen great consolidations. In August, Reliance acquired NetMeds in a $ 88.5 million transaction followed by the merger of PharmEasy and Medlife. Currently, the Medlife promoters hold a 19.95% stake in the merged entity while the remainder is being commissioned by PharmEasy and its backers. According to media reports, Tata Group is also in the process of acquiring a controlling stake in 1mg.