PharmEasy's parent company, API Holdings, plans to collect Rs 1,700 crore through Non-Convertible Debentures (NCDs) to settle outstanding debts.
In a significant move, API Holdings, the parent company of PharmEasy, has successfully raised Rs 1,700 crore through a debt round led by 360 One, which contributed a substantial Rs 1,231 crore. Other participants included Micro Labs Limited, MVS Ventures, Bennett Coleman, Alkram Ventures, and several other investors such as Kyrush Investments, Medley Pharmaceuticals, and Mahalaxmi Trust. Collectively, these institutions contributed Rs 210 crore, Rs 78 crore, Rs 50 crore, and Rs 42 crore respectively.
The fresh infusion aims to repay a Goldman Sachs facility of Rs 2,700 crore, which was raised in May 2022. Notably, the Goldman Sachs loan was used to refinance a Rs 2,200 crore Kotak Mahindra Bank loan taken for acquiring Thyrocare in 2021.
Despite breaching restrictive covenants on spending earlier this year, PharmEasy continued to meet its repayment schedules for the Goldman Sachs loan. The company's ability to raise debt and repay obligations demonstrates its financial resilience.
In other news, Thyrocare, acquired by PharmEasy in 2021, reported stronger growth. Its FY25 consolidated net profit rose 30.6% to Rs 90.8 crore, and its revenue was Rs 687.4 crore, up 20.2% year-on-year.
Meanwhile, Siddharth Shah, a co-founder and previously the CEO of PharmEasy, stepped down from his position in August. Thyrocare's MD and CEO Rahul Guha assumed the role of PharmEasy's CEO following Siddharth Shah's departure.
API Holdings is now effectively steered by institutional investors, including Ranjan Pai's family office, Prosus, TPG, and Temasek. The earlier NCDs were secured by pledging the entire 71.06% stake held by Docon Technologies, a PharmEasy group entity, in Thyrocare. Following the repayment, Docon will release those shares and pledge up to 61% for the new issuance.
Interestingly, other co-founders, Dharmil Sheth, Dhaval Shah, and Hardik Dedhia, exited their executive roles earlier this year to launch a new venture in architecture and design.
The funds raised will be used to repay earlier debt obligations, marking a significant step forward for PharmEasy as it continues to navigate the competitive healthcare industry.
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