![](https://techlivetrends.com/wp-content/uploads/2023/07/GettyImages-1221998970.jpg)
PharmEasy, once valued at over $5 billion, seeks new funding at a 90% valuation cut
![](https://techcrunch.com/wp-content/uploads/2022/01/GettyImages-1221998970.jpg?w=599)
Indian online pharmacy startup PharmEasy has informed its existing investors that it plans to raise a new round of funding via rights issue at a 90% markdown from the previous valuation, a person familiar with the matter said.
PharmEasy, one of India’s largest pharmacy firms, is racing to raise the new capital to pay its lender Goldman Sachs, the person said. Indian newspaper Economic Times first reported the development.
API Holdings, the parent firm of PharmEasy, was valued at over $5 billion in its most recent funding round in the second half of 2021.
The firm, which offers a range of services including tools and information on wellness, consultations, diagnostic and radiology tests and treatment deliveries, had filed for a $843 million IPO in November 2021, but later deferred the plan.
The startup plans to raise new financing through a rights issue that would value the price of its share at 5 Indian rupees, down from 50 earlier, the paper reported, citing internal documents.
At the proposed terms, if the round materializes, PharmEasy will see its valuation plummet to about $500 million to $600 million. The startup has altogether raised over $1.1 billion against equity and in debt. It will also become the first major Indian unicorn to raise a down round.
PharmEasy has been looking to raise a new round for several quarters, but has struggled to find a taker at even $2 billion valuation, TechCrunch reported earlier. The company did not respond.
The firm counts TPG, Prosus, Temasek, B Capital, Bessemer Venture Partners, Eight Roads Ventures, Steadview Capital and JM Financial among its backers.
Moneycontrol reported separately that healthcare group Manipal is looking to invest about $121.6 million in PharmEasy for a 18% stake in the Indian startup.