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We have updated our terms and conditions and privacy policy Click "Continue" to accept and continue with ET Retail ACCEPT THE UPDATED PRIVACY & COOKIE POLICY Dear user, ET Retail privacy and cookie policy has been updated to align with the new data regulations in European Union. Please review and accept these changes below to continue using the website. You can see our privacy policy & our cookie policy. We use cookies to ensure the best experience for you on our website. If you choose to ignore this message, we'll assume that you are happy to receive all cookies on ET Retail. * Analytics * Necessary * Newsletter NameProviderExpiryTypePurpose Google AnalyticsGoogle1 YearHTTPSTo track visitors to the site, their origin & behaviour.iBeat AnalyticsIbeat1 YearHTTPSTo track article's statisticsGrowthRx AnalyticsGrowthRx1 YearHTTPSTo track visitors to the site and their behaviour NameProviderExpiryTypePurpose optoutTimes Internet1 YearHTTPSStores the user's cookie consent state for the current domainPHPSESSIDTimes Internet1 dayHTTPSStores user's preferencesaccessCodeTimes Internet2.5 HoursHTTPSTo serve content relevant to a regionpfuuidTimes Internet1 YearHTTPSUniquely identify each userOSTIDTimes Internet1 YearHTTPSOauth secure tokenOSSOIDTimes Internet1 YearHTTPSOauth user identifierOSTPID Times Internet1 YearHTTPSused to sync accross portalsfpidTimes Internet1 YearHTTPSBrowser Fingerprinting to uniquely identify client browsers NamePurpose Daily NewsletterReceive daily list of important newsPromo MailersReceive information about events, industry, etc. I've read & accepted the terms and conditions NEWS SITES * Auto News * Health News * Telecom News * Energy News * CIO News * Real Estate News * Brand Equity * CFO News * IT Security News * BFSI News * Government News * Hospitality News * HR News * Legal News * ET TravelWorld News * Infra News * B2B News * CIOSEA News * HRSEA News * HRME News Upcoming Event: CFO Meet & discussion on Revised Companies Act Sign in/Sign up * Follow us: * * * * * Featured > Retail inflation jumps to 17-month high of 6.95% in March * * News * Apparel & Fashion * E-commerce * Food & Entertainment * CDIT * Health & Beauty * Home & Decor * Books and Stationery * Industry TPG-backed FirstCry nears $700 million IPO filing10 hrs ago Amazon warns Future Retail against holding meeting to approve deal with Reliance1 day ago * CBI books textiles major S Kumars in Rs 1,245 crore loan fraud * BigBasket gets Rs 1,000 crore investment * After Zomato, Ola pilots 10-min food delivery; Swiggy may explore faster deliveries too * Retail inflation jumps to 17-month high of 6.95% in March * Zilingo is said to suspend CEO Ankiti Bose amid investigation * Future Enterprises defaults on Rs 9.10 cr interest payment for NCDs * Rising prices of essentials, fuel spare no one, strain household budgets across country * As global brands take flight, Indian retailers book tickets for Russia * IndustrySpeak * Interviews * Re-Tales * Jobs & Career * Feature * Innovations * Trends * Startups * Data & Analytics * Social Analytics * Reports * Retail TV * Podcast * Brand Solutions * ETRETAIL SUPPLY CHAIN & PACKAGING SUMMIT 2022 Rehauling Supply Chain & Packaging Industry in a D.. * ETRETAIL BUSINESS LEADERSHIP SUMMIT Exploring Retail's Futuristic Approach and Connect.. * FORTER : ENHANCE CUSTOMER EXPERIENCE, MAXIMISE REVENUE, AND ELIMINATE FRAUD * ETRETAIL E-COMMERCE SUMMIT How Pandemic Accelerated Online Retailing * RETAILTECH SUMMIT '22 Bridging The Gap Between Aspirational Technologies.. * ETRETAIL BUSINESS LEADERSHIP SUMMIT ETRetail.com Business Leadership Summit * MICROSOFT DYNAMICS * Apparel & Fashion * E-commerce * Fraud Detection * Food & Entertainment * CDIT * Health & Beauty * Home & Decor * Books and Stationery * More x * Retail News * Latest Retail News * Health & Beauty * Pharmacy EXCLUSIVE TRADER'S BODY SEEKS BAN ON ONLINE MEDICINE SALES CAIT's national president B C Bhartia and secretary general Praveen Khandelwal said that the DC Act and Rules regulates the import, manufacture, sale and distribution of drugs in the country, and has strict provisions in view of public health and safety. * PTI * April 08, 2022, 08:06 IST * * * * * * * * New Delhi: Traders' body CAIT on Thursday asked the government to prohibit online marketplaces from selling drugs in the country, a day after e-retailer Flipkart announced its entry into the medicine vertical. In a statement issued on Thursday, the Confederation of All India Traders (CAIT) said it has written to commerce minister Piyush Goyal and health minister Mansukh Mandaviya drawing their urgent attention to prohibit e-pharmacies from selling drugs in India so that the provisions of Drugs and Cosmetics Act and Rules (DC Act and Rules) are fully complied with. CAIT's national president B C Bhartia and secretary general Praveen Khandelwal said that the DC Act and Rules regulates the import, manufacture, sale and distribution of drugs in the country, and has strict provisions in view of public health and safety. On April 6, Walmart group firm Flipkart announced its foray into the healthcare segment by launching new app Flipkart Health Plus to leverage its reach and serve more than 20,000 pin code areas across the country. Flipkart Health Plus platform plans to onboard over 500 independent sellers with a network of registered pharmacists for validation of medical prescriptions and accurate dispensation of medicines. CAIT said that no person is permitted to import, manufacture, sell or distribute drugs without a valid licence or sell misbranded, adulterated or spurious drugs, or sell drugs without an original prescription. Bhartia and Khandelwal also urged the government to ban e-pharmacies to prevent them from hiding behind intermediary provisions under Indian laws with an intention to avoid any liability, in case adulterated, spurious or counterfeit drugs reach the consumer. The trade body called for a ban on marketplace intermediaries to put an end to deep discounting and predatory pricing, which hurts offline retailers. CAIT also urged the government to impose a minimum penalty of Rs 1 lakh which may extend to Rs 10 lakh so that violators like Pharmeasy, Netmeds, Flipkart, Amazon Pharmacy, Tata1Mg etc. are suitably penalised. "To prevent intermediaries from getting into creative agreements and operate marketplace e-pharmacy platforms, we have also requested the government to ensure that no person should be allowed to establish a web portal to act as an intermediary between the e-pharmacy entity and consumer," it said. The industry body asked the government to ensure that drugs are disbursed only from a registered retail pharmacy and only by a registered pharmacist. FLIPKART LAUNCHES SEPARATE APP FOR HEALTHCARE BIZ TO TAKE ON 1MG, PHARMEASY, OTHERS To start with, the platform will have over 500 independent sellers who have a network of registered pharmacists for validation of medical prescriptions and accurate dispensation of medicines. See More Details Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy e-pharmacy flipkart cait amazon pharmacy pharmeasy online medicine sales Read on App Read on App PEOPLE WHO READ THIS ALSO READ * How shops use psychology to influence your buying decisions * As global brands take flight, Indian retailers book tickets for Russia * New rules in the works to curb seller bias in etail search results * BigBasket gets Rs 1,000 crore investment Recommended by Colombia SPONSORED STORIES SUBSCRIBE TO OUR NEWSLETTER 275000+ Industry Leaders read it everyday I have read Privacy Policy and Terms & Conditions and agree to receive newsletters and other communications on this email ID. Most Read * This Week * This Month * FLIPKART RAISES IPO VALUATION TARGET TO $60-70 BILLION, EYES 2023 LISTING The main reason for waiting for the IPO is due to Flipkart's internal plan to boost valuations further by focussing on two of its relatively new businesses -- online healthcare services and travel bookings, two of the sources with direct knowledge said. * COFFEE DAY DEFAULTS RS 480 CRORE ON LOAN REPAYMENT, SECURITIES * TATA PACKS POWER BRANDS IN MEGA APP TO RIVAL AMAZON, AMBANI * BIGBASKET GETS RS 1,000 CRORE INVESTMENT * DIRECT SELLING INDUSTRY GROWS 7.7% TO RS 18,067 CR IN FY21: REPORT The Annual Survey 2020-21 revealed that employment in the direct selling industry has also increased. The total number of active direct sellers in FY21 grew 6.32 per cent to 7.9 million against 7.4 million in FY2019-20. "In terms of the gender ratio of Direct Sellers, the industry currently comprises 53 per cent of male and 47 per cent of female active Direct Sellers," as per the report. * FLIPKART RAISES IPO VALUATION TARGET TO $60-70 BILLION, EYES 2023 LISTING * RIL-ACRE'S OFFER FOR SINTEX INDUSTRIES GETS OVER 90% SUPPORT FROM LENDERS * COFFEE DAY DEFAULTS RS 480 CRORE ON LOAN REPAYMENT, SECURITIES MOST READ IN HEALTH & BEAUTY * This Week * This Month * TRADER'S BODY SEEKS BAN ON ONLINE MEDICINE SALES * INDIA AMONG TOP PRIORITY MARKETS; TO GROW IN DOUBLE DIGITS: ORIFLAME * EUROPEAN COSMETICS MAKERS FACE SUPPLY CRISIS AMID SCARCITY OF UKRAINE RESOURCES * FLIPKART LAUNCHES SEPARATE APP FOR HEALTHCARE BIZ TO TAKE ON 1MG, PHARMEASY, OTHERS * TRADER'S BODY SEEKS BAN ON ONLINE MEDICINE SALES * NYKAA WOULD HAVE GROWN FASTER IN EARLY DAYS WITH A TECH-SAVVY COFOUNDER, SAYS CEO FALGUNI NAYAR * ONLINE BEAUTY BRAND PLUM RAISES $35 MILLION IN FUNDING LED BY A91 PARTNERS RETAIL TV * DUBAI'S FUTURISTIC ECOMMERCE ECOSYSTEM * 25:01 DIGITIZATION ROLE IN RETAIL INDUSTRY: IN CONVERSATION WITH DEEPAK SURI FROM MAERSK * 01:04:56 ETRETAIL SCS 2022: DEEP DIVE INTO DEMAND, SUPPLY, FORECASTING STRATEGIES TO INCREASE SUPPLY CHAIN VALUE * 01:08:41 ETRETAIL SCS 2022: HOW WILL THE GROWING LAST-MILE DELIVERY TRANSFORM THE INDIAN E-COMMERCE ECOSYSTEM? View More EXCLUSIVE FLIPKART LAUNCHES SEPARATE APP FOR HEALTHCARE BIZ TO TAKE ON 1MG, PHARMEASY, OTHERS To start with, the platform will have over 500 independent sellers who have a network of registered pharmacists for validation of medical prescriptions and accurate dispensation of medicines. * ETtech Click Here to Read This Story * * * * * * * * Bengaluru: Flipkart has launched a separate app for its healthcare business, Flipkart Health+. It will operate with the marketplace model, in which third-party sellers will offer medicines and healthcare products on the platform. To start with, the platform will have over 500 independent sellers who have a network of registered pharmacists for validation of medical prescriptions and accurate dispensation of medicines, the company said in a statement on Wednesday. According to Flipkart Health+, it has put in place various quality checks and verification protocols to offer genuine medicines. Going forward, the company plans to onboard third-party healthcare service providers who will offer other value-added healthcare services such as teleconsultation and e-diagnostics to customers. This is one of the reasons why Flipkart has chosen to create a separate app for its healthcare business. The development comes as the company continues to scale many of its new businesses, including epharmacy, travel and social commerce platform Shopsy, and double down on its grocery business. ET reported on March 31 that Flipkart had pumped in $143 million into its healthcare unit last month. The company also appointed former Apollo Health executive Prashant Jhaveri as CEO of its healthcare business in March. The pandemic has triggered consolidation in the Indian healthcare industry and seen the entry of large players such as Reliance Industries and the Tata Group, which picked up Netmeds and 1mg, respectively. Flipkart will be competing with these players and others such as PharmEasy and Amazon India, which has expanded its epharmacy business beyond Bengaluru to Delhi-NCR. “Since the Covid-19 pandemic, Indians have witnessed a tremendous shift in favouring wellness and preventative healthcare and there is an increased focus on health and wellness like never before,” said Jhaveri. “Through Flipkart Health+, we aim to solve the critical gap of accessibility to genuine medicines and healthcare products and services across the country, especially the remotest parts.” Flipkart launched its healthcare business in November 2021 and acquired SastaSundar in the same month for an undisclosed amount. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy flipkart health+ walmart pharmeasy online pharmacy Flipkart medicines flipkart ecommerce e-pharmacy e-commerce 1mg Read on App Read on App EXCLUSIVE FLIPKART APPOINTS PRASHANT JHAVERI AS CEO OF HEALTHCARE BUSINESS Jhaveri previously worked with Apollo Health and Lifestyle Limited as its chief business officer and was responsible for growth and partnership. He also served as CEO of MediBuddy and CBO for the Medi Assist Group in previous stints. * ETtech Click Here to Read This Story * * * * * * * * Flipkart Health+ CEO Prashant JhaveriBengaluru: Ecommerce major Flipkart’s healthcare business Flipkart Health+ said it has appointed Prashant Jhaveri as its chief executive officer. Jhaveri previously worked with Apollo Health and Lifestyle Limited as its chief business officer and was responsible for growth and partnership. He also served as CEO of MediBuddy and CBO for the Medi Assist Group in previous stints. His appointment comes as Flipkart is scaling up many of its new businesses this year. The company is estimated to have spent $400-500 million on mergers and acquisitions (M&As) over the past 12-18 months, having acquired travel platform Cleartrip and invested in Ninjacart. The pandemic has triggered consolidation in the Indian healthcare industry and seen the entry of large players such as Reliance (Netmeds) and Tata (1mg). Flipkart launched its healthcare business in November 2021 and acquired SastaSundar in the same month for an undisclosed sum. “There is an immense opportunity to take healthcare to the deepest parts of India through the right technology solutions and consumer value propositions,” said Jhaveri. “With Flipkart Health+, I look forward to working with a talented team as we work towards solving accessibility and affordability of quality healthcare products and services for millions of customers in India.” “As Flipkart Health+ begins its journey, we are pleased to welcome Prashant on board,” said Ajay Veer Yadav, senior vice president and head of Flipkart Health+. “His vast experience in the healthcare sector will be a great asset in the journey to build Flipkart Health+ as India’s premier tech-enabled healthcare platform.” Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy jhaveri flipkart health+ sastasundar Prashant Jhaveri appointment prashant jhaveri medibuddy healthcare flipkart apollo health Read on App Read on App EXCLUSIVE PHARMEASY PARENT API HOLDINGS GETS SEBI NOD FOR RS 6,250 CRORE IPO The company will use Rs 1,929 crore from the IPO proceeds to repay or prepay borrowings and Rs 1,259 crore to fund organic growth initiatives, besides allocating Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives. * Shubham Raj * ETMarkets.com Click Here to Read This Story * * * * * * * * NEW DELHI: API Holdings, the parent company of online pharmacy PharmEasy, received approval from markets regulator Sebi to raise Rs 6,250 crore through an initial public offering (IPO). The issue will only be a primary share sale of shares of Rs 6,250 crore. The company will use Rs 1,929 crore from the IPO proceeds to repay or prepay borrowings and Rs 1,259 crore to fund organic growth initiatives, besides allocating Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives. Additionally, the company, in consultation with the bankers to the issue, may consider a private placement aggregating up to Rs 1,250 crore. If such placement is completed, the fresh issue size will be reduced. The Mumbai-headquartered company is an integrated, end-to-end business that aims to provide solutions for healthcare needs of consumers providing digital tools and information on illness and wellness, offering teleconsultation, offering diagnostics and radiology tests, and delivering treatment protocols including products and devices. It recently acquired a majority stake in Thyrocare Technologies. According to a RedSeer Report, stated in its DRHP, API Holdings is India’s largest digital healthcare platform based on gross merchant value (GMV) of products and services sold for the year ended March 31, 2021. Kotak Mahindra Capital Company, Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets India and JM Financial are the book running lead managers to the issue. Along With API Holdings, Sebi also gave nod to CMR Green Technologies and Wellness Forever Medicare to float their IPO. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy API Holdings Pharmeasy IPO pharmeasy Sebi nod Sebi IPO API Holding IPO Wellness Forever Medicare IPO thyrocare technologies CMR Green Technologies IPO Read on App Read on App EXCLUSIVE PHARMEASY MAY HAVE TO REWORK IPO VALUATION AS THE MOOD SOURS Unlike Delhivery and Oyo Hotels & Homes, its IPO is fully through primary share sale and doesn’t have an OFS (offer for sale) component. It filed the draft IPO papers in November to raise Rs 6,250 crore by issuing only new shares. * Digbijay Mishra * ETtech Click Here to Read This Story * * * * * * * * As new-age companies feel the pressure of broader market rout, online pharmacy PharmEasy may have to readjust its valuation it was aiming for through a public offering, according to industry sources. In what could be an indication of the same, in the grey market, its shares are currently being traded anywhere between Rs 70 and Rs 80, significantly lower than over Rs 100 earlier this year, according to people aware of the matter. PharmEasy parent API Holdings is yet to get final clearance from Sebi on its IPO and is also reconsidering its IPO launch time. Unlike Delhivery and Oyo Hotels & Homes, its IPO is fully through primary share sale and doesn’t have an OFS (offer for sale) component. It filed the draft IPO papers in November to raise Rs 6,250 crore by issuing only new shares. PharmEasy was last valued at $5.4 billion and was aiming at an IPO valuation of around $7-8 billion. “It (grey market pricing) signals the current nervousness on tech IPOs and valuations. Before Paytm IPO, PharmEasy's secondary shares were available at Rs 120-130 as well,” one of the people directly aware of the grey market pricing of the company said. Another person aware of PharmEasy’s plans also said the grey market pricing has been fluctuating and does not indicate the full picture of a company’s valuation. ET reported on February 10 that Oyo is considering to cut its IPO size and is likely to reconsider its valuation in the proposed IPO. It had planned for a valuation in the range of $9-12 billion but it might settle at around $7 billion. No final decision has been taken on pricing of its IPO as it awaits the final nod from Sebi. “They (PharmEasy) continue to be in talks with marquee investors for anchor slots. Now, at what price it happens remains to be seen but there is of course a correction in tech stock,” another person aware of PharmEasy’s plans said. When contacted, PharmEasy cofounder and CEO Siddharth Shah declined to comment on the matter. All said, PharmEasy is yet to get Sebi’s nod for its proposed IPO. “They (PharmEasy) will only finalise pricing after the nod,” one of the sources said, adding that the firm is expecting the clearance this month. Even then, the issue launch is likely to be moved to next financial year. It was planning to list on Indian bourses within this financial year. A recent report from Bernstein Research showed PharmEasy has the lion's share in online pharmacy GMV (gross merchandise value) with a 50% share compared to Tata-owned 1mg having 16% share and Reliance Industries' Netmeds with 15% share. " Market leadership in both epharmacy and diagnostics augurs well for the future. The evolving market structure with entry of horizontals like Reliance, Tata and Flipkart is a concern but we are positive about API Holdings retaining dominant market share," the Bernstein report noted. Epharmacy GMV for PharmEasy is estimated to be $1 billion by FY25 , which would be a 25% market share based on the estimates of the overall epharmacy market to be $4 billion in the same time frame. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy pharmeasy pharmeasy ipo oyo hotels ipo initial public offering delhivery Read on App Read on App EXCLUSIVE MEDPLUS HEALTH SHARES MAKE A STRONG DEBUT, LIST AT OVER 30% PREMIUM OVER IPO PRICE The Rs 1,398.30 crore IPO of Medplus Health Services was open for subscription between December 13-15. The company sold its shares in the range of Rs 780-796 per share. * Pawan Nahar * ETMarkets.com Click Here to Read This Story * * * * * * * * New Delhi: Pharmacy retailer Medplus Health Services made a strong debut on the bourses as the scrip was listed at Rs 1,040 on NSE, a premium of 30.65 per cent, over its issue price of Rs 796. On BSE, the counter listed at Rs 1,015. A day ahead of its debut on the bourses, the scrip was exchanging hands at a premium of about Rs 100 per share in the grey market, signaling at strong debut on Dalal street. The Rs 1,398.30 crore IPO of Medplus Health Services was open for subscription between December 13-15. The company sold its shares in the range of Rs 780-796 per share. It received a strong response as it was subscribed about 53 times. The quota for institutional bidders got bids for 112 times, whereas the HNI portion was subscribed a little more than 85 times. Retail allocation fetched more than 5 times bids. Incorporated in 2006, Medplus Health Services is India's second largest pharmacy retailer in terms of the number of stores and revenue, offering pharmaceutical and wellness products. The company has over 20 per cent share in organized pharmacy retail with a network of 2,165 stores, majorly in the states of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy Medplus Share Price Medplus Health Services share price Medplus Health Services ipo listing price Medplus Health Services ipo Medplus Health Services ipo Read on App Read on App EXCLUSIVE TATA-OWNED 1MG, PHARMEASY GO OFFLINE FOR OMNICHANNEL PRESENCE Tata-owned 1mg is set to open its first physical store in Gurugram next month while rival PharmEasy has started to expand across the offline channel through franchise stores. * Digbijay Mishra * ETtech Click Here to Read This Story * * * * * * * * Bengaluru: Two of India’s biggest online pharmacies are going offline, as they look to have an omni-channel presence to widen their user base. Tata-owned 1mg is set to open its first physical store in Gurugram next month while rival PharmEasy has started to expand across the offline channel through franchise stores, people briefed on the matter said. The two companies have taken different approaches in going offline, and it would be interesting to see how this pans out, they said. This will put both 1mg and PharmEasy, which are known for their online presence, in direct competition with established offline brands like Apollo Pharmacy and Medplus. “1mg will open around a dozen stores in the next three to four months. They will see how it goes operationally but they want to scale it across India significantly with about 500 stores in the next three year or so, if all goes as per plan,” a person aware of the matter said. PharmEasy is offering its name and branding to pharmacy retailers to set up these stores for which the company will get a commission on the sales. PharmEasy will also tap into its distribution network to supply products to these stores, people briefed on the matter said. “They (PharmEasy) have started it in non-metros and have plans to scale it widely. The initial feedback has been encouraging and it is being tested more across these markets. But they don’t want to set up their own stores but do it through a franchise model,” one of the people said. PharmEasy cofounder Siddharth Shah and 1mg cofounder Prashant Tandon declined to comment for this story. The franchise-store model from PharmEasy ties in with its broader strategy to bring in new users and offer them the full-stack health services, both online and offline. The company acquired diagnostic chain Thyrocare Technologies for Rs 4,546 crore in June and has been making other acquisitions like Aknamed, a cloud-based hospital supply chain management startup. Its parent, API Holdings, filed for a Rs 6,250 crore IPO with the Securities and Exchange Board of India earlier this month. “It will work on the take-rate model on all sales and they (retailers) get to buy from PharmEasy for assured supply. If it works, it will be scaled massively and could be big for the company in the long run,” a second person aware of the matter said. It is also planning to offer a click-and-pick model in the long term where consumers can pick medicines from the nearby stores after ordering it online through the PharmEasy platform. For 1mg, too, its expansion in the offline channel is in line with parent Tata Digital’s plans to have an omnichannel presence of its online businesses. Last week, online grocer BigBasket, which is also owned by the Tatas, said it had set up its own physical stores named Fresho for fresh supplies and that it will open 200 such stores by financial year 2023. In an interview with ET in July, PharmEasy cofounder Shah had said the company wanted to offer key elements of healthcare—information, consultation, test and treatment—to all customers in India and that the Thyrocare acquisition was part of that plan. Etailers like Flipkart and Amazon India are also experimenting with various models and partnerships to tap into new users through an offline presence as well as serve their existing users with faster deliveries. In online pharmacy and the broader e-healthcare business, PharmEasy and 1mg compete with Reliance Industries’ Netmeds, Amazon India and recent entrant Flipkart, which acquired a majority stake in Kolkata-based online pharmacy SastaSundar. PharmEasy, in its draft IPO papers, said it would use Rs 1,259 crore from the proceeds to fund organic growth initiatives, besides allocating Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives. It plans to use Rs 1,929 crore to repay or prepay borrowings. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy Tata retailers reliance netmeds pharmeasy ipo pharmeasy online pharmacy Flipkart e-pharmacy Amazon 1mg Read on App Read on App EXCLUSIVE PHARMEASY FILES FOR RS 6,250 CRORE IPO, EXISTING SHAREHOLDERS WILL NOT SELL SHARES Amongst a slew of tech IPO’s such as Zomato, Nykaa, PayTM, Policy Bazaar and Delhivery, this IPO stands out as the only one with no secondary sale of shares by any existing shareholder. * Sunainaa Chadha * TIMESOFINDIA.COM Click Here to Read This Story * * * * * * * * Digital healthcare platform PharmEasy's parent company API Holding filed for an initial public offering (IPO) of up to Rs 6,250 crore on Tuesday. The issue does not have any offer for sale (OFS) component, which means none of PharmEasy’s existing shareholders would sell their stake in the company as of now. Prosus Ventures, TPG Growth, CDPQ and Temasek are among PharmEasy’s top investors. Their decision to not to cash out during the IPO indicates confidence among PharmEasy’s investors about the growth potential of the company. PharmEasy's IPO filing comes on a day when fashion e-commerce startup Nykaa listed at 79 per cent premium over its issue price on stock exchanges, while fintech platform Paytm closes subscription prior to its debut. PharmEasy also considering a pre-IPO fundraise via private placement to the tune of Rs 1,250 crore. Once the pre-IPO round is complete, it will reduce the raised amount from the IPO issue size and the minimum issue size would constitute at least 10 per cent of the post-issue paid-up equity share capital of the company. The company has already raised $350 million (Rs 2,635.22 crore) in a fresh equity financing round from a bunch of new investors in October, valuing the firm at $5.6 billion (Rs 42,197.79 crore). The primary funding worth $205 million was secured from new investors, including Singapore-based Amansa Capital, Hong Kong-based hedge fund ApaH Capital, US hedge fund Janus Henderson, OrbiMed, Steadview Capital, Abu Dhabi-based sovereign wealth fund ADQ, New York-based hedge fund Neuberger Berman and London’s Sanne Group. In April, it raised $350 million from Prosus Ventures (formerly Naspers) and TPG Growth at a valuation of $1.5 billion, becoming the first Indian e-pharmacy unicorn. To date, PharmEasy has raised over $1.2 billion in equity and debt funding. In a bid to diversify its operations, the firm had acquired Thyrocare Technologies, India's largest diagnostic test provider by volumes, in June 2021 for $600 million. In May 2021 it completed the acquisition of smaller rival Medlife to become the country's largest online pharmacy and healthcare aggregator. In September 2021, the company acquired a majority of Bengaluru based tech focused, healthcare supply chain startup Akna Medical for an undisclosed sum. The proceeds from the fresh issue will be used for prepayment or repayment of outstanding debt to the tune of Rs 1,929 crore. It will use Rs 1,259 crore for funding organic growth initiatives while another Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives. Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Private Ltd, BoFA Securities India Limited, Citigroup Global Markets India Private Ltd, JM Financial Ltd are bankers to the public issue. Founded in 2015 by Sheth and Shah, PharmEasy merged with its investor entity, Ascent Health, to form API Holdings in 2019. The five founders of API Holdings, Siddharth, Hardik, Harsh, Dharmil and Dhaval are childhood friends, commonly referred to as the 'Ghatkopar Gang', as they all grew up in the suburb of Ghatkopar in Mumbai. According to a RedSeer Report, API Holdings is India’s largest digital healthcare platform based on gross merchant value (GMV) of products and services sold for the year ended March 31, 2021. It is an integrated, end-to-end business that aims to provide solutions for healthcare needs of consumers providing digital tools and information on illness and wellness, offering teleconsultation, offering diagnostics and radiology tests, and delivering treatment protocols including products and devices. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy Pharmeasy IPO pharmeasy online pharmacy nykaa ipo Read on App Read on App EXCLUSIVE PHARMEASY TO FILE DRHP FOR RS 6,000-7,000 CRORE IPO BY NEXT WEEK The DRHP would be a minimum of Rs 6,000 crore and PharmEasy could potentially increase it by another 20% as per market regulations, people familiar with the matter said. * Digbijay Mishra * ETtech Click Here to Read This Story * * * * * * * * Bengaluru: Online pharmacy PharmEasy is set to file its draft red herring prospectus in the next seven-ten days for its initial public offering (IPO) in what would be a fully primary share sale to raise over Rs 6,000 crore, people aware of the matter said. PharmEasy’s parent API Holdings’ IPO is expected to be anywhere between Rs 6,000-7,000 crore, people briefed on the matter said. With this, PharmEasy will join top-tier startups tapping the public markets this year. While Paytm, Nykaa and Policybazaar’s IPO are happening around Diwali, PharmEasy is likely to be a publicly traded firm before the current financial year ends. Delhivery is also in the final stages of filing its draft papers for an IPO in India. “They (PharmEasy) are looking to raise anywhere between Rs 6,000-6,500 crore. The DRHP would be a minimum of Rs 6,000 crore and they could potentially increase it by another 20% as per market regulations,” a person aware of the plans said. “It is a fully primary share sale,” the person added. The company was aiming to file the draft IPO papers by October but it took time to close its pre-IPO round. “That’s why it has spilled into early November now,” a source added. The company recently closed a nearly $350 million pre-IPO round as reported by ET earlier this month. Following the pre-IPO round, the company was valued at around $5.6 billion. “PharmEasy will list at a higher valuation than the pre-IPO round but that’s not finalised yet. They want to price it in a way so there is room for more growth (in valuation) after the listing,” a person aware of the company’s thinking said. PharmEasy spokespeople weren’t immediately available for a comment. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Health & Beauty Pharmacy pharmeasy ipo pharmeasy online pharmacy IPO api holdings Read on App Read on App EXCLUSIVE PHARMEASY CLOSES $350 MILLION IN PRE-IPO ROUND, VALUATION JUMPS TO $5.6 BILLION The company has raised around $204 million (more than Rs 1,505 crore) in primary funding from Singapore’s Amansa Capital,Blackstone-backed hedge fund ApaH Capital, US hedge fund Janus Henderson, OrbiMed, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, hedge fund Neuberger Berman and London’s Sanne Group, the documents showed. * Digbijay Mishra * ETtech Click Here to Read This Story * * * * * * * * Online pharmacy PharmEasy has closed a funding round worth nearly $350 million ahead of filing its draft red herring prospectus (DRHP) before an Initial Public Offering (IPO), according to regulatory documents sourced by ET and people briefed on the matter. The company has raised around $204 million (more than Rs 1,505 crore) in primary funding from Singapore’s Amansa Capital,Blackstone-backed hedge fund ApaH Capital, US hedge fund Janus Henderson, OrbiMed, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, hedge fund Neuberger Berman and London’s Sanne Group, the documents showed. Sources told ET that PharmEasy parent API Holdings has also closed a $130-$140 millionsecondary share sale. About 20 senior employees have bought shares worth $5 million as part of the secondary sale, indicating bullishness over the IPO. Early investors and angel investors have sold their stakes in the firm, while IIFL’s tech fund has also picked up shares, the sources added. PharmEasy founders, too, have bought shares worth around $40 million in the secondary sale, people briefed on the matter said. The above-mentioned investors have also picked up secondary shares besides their primary investment, the people added. In a secondary share sale, existing investors sell their shares to new investors and the money does not flow into the company coffers. Details of the secondary share sale were, however, not available in the regulatory filings. This is the third major financing round that the company has closed, taking the total to $1 billion including secondary funding in the calendar year so far, amid record amounts of capital being pumped into startups leading the digital economy. Excluding the latest fundraise, it has mopped up about $650 million since April, when the e-pharmacy entered the unicorn club at a valuation of $1.5 billion. According to an IVCA-Preqin report, venture capital investment in startups was at a record high of $26 billion as of October 7. Following the pre-IPO round, API Holdings' post-money valuation has jumped to $5.6 billion, sources added. PharmEasy was valued at $4 billion after it acquired diagnostics chain Thyrocare for over $600 million in June. ET reported exclusively on October 4 and September 14 that several of the above-mentioned investors were in the final stages of backing the company and that it planned to close a secondary share sale before going public. ET also reported that PharmEasy was planning to file its DRHP this month. “They (PharmEasy) are aiming to file DRHP this month still or around Diwali since the funding round has now closed,” a person aware of the company’s thinking said. PharmEasy’s founders, Siddharth Shah, Dhaval Shah, Dhramil Sheth, Harsh Parekh and Hardik Dedhia, have also been given new stock options ahead of the IPO, a growing practice among startups, in a significant wealth creation opportunity for founders before a public market debut. Each founder has been given 9,987 stock options under its employee stock ownership plan (Esop), the documents showed. Siddharth Shah, also its chief executive, was not immediately available for comment on Sunday. Leading startups across the world have also undertaken similar exercises to reward founders. ET reported last month that Paytm founder Vijay Shekhar Sharma was granted a significant amount of new stock options as the fintech firm races to make its Dalal Street debut before Diwali. According to the filings, Amansa Capital has put almost Rs 370 crore in the round, while Sanne Group has invested over Rs 443 crore. Steadview Capital has chipped in Rs 110 crore. Janus Henderson-managed funds have invested close to Rs 100 crore, while ADQ has put around Rs 74 crore, the filings showed. New York-based Neuberger Berman and others have invested the rest of the money. PharmEasy has also added five new independent directors to its 12-strong board and received board approval to convert itself into a public company from a private entity. In September, the Mumbai-based company acquired cloud-based hospital supply chain management startup Aknamed in a $180-$190 million deal, positioning itself as a broader digital healthcare platform. 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