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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

 * 
 * 
 * 
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 * 
 * 
 * 
 * 

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

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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.



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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.”


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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

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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.


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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

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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.


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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

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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.


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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

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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.


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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

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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.


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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

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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.


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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

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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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