By Mr. Abhay Ray 
Introduction to PharmEasy
PharmEasy is an e-commerce platform for the purchase of medicines, diagnostics and other healthcare-related equipment. Whenever one uploads a prescription on PharmEasy, it is then sent to a drugstore in their vicinity. The company uses a mobile app and web technology to offer the best quality healthcare products and essentials to its customers at affordable rates.
Incorporation – The Company was founded in 2015 by Dharmil Sheth and Dhaval Shah in Mumbai.
PharmEasy Mission &Vision
- PharmEasy mission is to provide affordable, accessible, and high-quality healthcare services to people in India. They envision a world where everyone has access to the healthcare they need, regardless of where they live or their socioeconomic status.
- PharmEasy vision is to become the go-to platform for all healthcare needs, from online consultations with doctors and healthcare professionals to deliver of medicines and healthcare products right to users’ doorsteps.
Founder Details of PharmEasy
PharmEasy Founder of Dharmil Sheth and Dhaval Shah in Mumbai with the initial seed funding provided by their parents.
- Dharmil Sheth, as a co-founder of PharmEasy, Sheth brought to life his vision of a more efficient and user-friendly way for people to access their medications. His journey into the realm of healthcare began with a desire to improve community well-being. Dharmil Sheth academic background laid a solid foundation for his entrepreneurial pursuits. He completed his undergraduate studies in Electronics Engineering from K.J. Somaiya College of Engineering and pursued an MBA from the Institute of Management Technology in Ghaziabad.
Dharmil’s career began with an internship at MakeMyTrip in 2012, where he worked on marketing and workflow optimization for holiday products. He also gained early business development experience at Techno Gravity Solutions, setting the stage for his future ventures. Dharmil is also the Co-founder of API Holdings & the founder and president of Ekagrata. He also founded 2014, 91streets, a marketing platform for retailers.
- Dhaval Shah is a co-founder of the company PharmEasy, one of India’s most trusted medicines delivery app, and he is a licensed medical practitioner. He brings his expertise in medicine and healthcare to the company, helping to ensure that users receive accurate medical advice and quality healthcare services. He holds an MBBS degree from Rajiv Gandhi Government Medical College, as well as an MBA degree from XLRI Jamshedpur.
Prior to launching PharmEasy, Dhaval worked with McKinsey & Company for 2 years as a consultant. This work experience played a major role in broadening his horizons, which led to the birth of PharmEasy with friend & co-founder Dharmil Sheth. Recently, the co-founders were listed in Forbes 30 under 30’s list of 2017 for being the brainchild of PharmEasy which has emerged as a leader in the online pharmacy space in less than two years since its launch.
Funding Rounds of PharmEasy
PharmEasy has received $1.7 billion in funding to date in over 14 rounds.
| Date of funding | Round Name | Funding Amount | Investors |
| April 29, 2024 | Venture Round | $216 million |
MEMG Family office, Existing Investors |
| Nov 7, 2022 | Debt Financing | – | EvolutionX Debt Capital |
| November 1, 2021 | Private Equity Fun | – | Vestin Wolf Capital Management |
| Oct 20, 2021 | Venture Round | – | Trifecta Capital Advisors |
| October 18, 2021 | Pre-IPO Round | $354 million | Amansa Capital, Fundamentum, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, and more |
| July 7, 2021 | Series F | $500 million | Arokiaswamy Velumani |
| June 17, 2021 | Secondary Market | $20 million | B Capital |
| April 7, 2021 | Series E | $390 million | Prosus Ventures, TPG Growth and others |
| November 27, 2019 | Series D | $220 million | Temasek Holdings and others |
| September 26, 2018 | Series C | $50 million |
Eight Roads Ventures India & others |
| September 11, 2018 | Debt Financing | $5.44 million | InnoVen Capital & more |
| February 28, 2018 | Series C | $27.23 million |
Eight Roads Ventures India, F-Prime Capital, and others |
| April 25, 2017 | Series B | $2 Million | Bessemer Venture Partners |
| March 30, 2017 | Series B | $16 Million | Bessemer Venture Partners |
PharmEasy – Acquisitions
The last company that PharmEasy acquired is a Bangalore-based healthcare supply chain management company, Aknamed. The latter has approved the selling of Rs. 975,937 Cr. equity shares at Rs. 3,155.94 Cr.to API Holdings to raise around Rs. 308 Cr. (around $42 million) from the parent company of PharmEasy, according to the regulatory filings. PharmEasy has previously acquired 66.1% stakes in Thyrocare, Mumbai-based Indian diagnostics, and preventive care laboratories, in a Rs. 4,546 Cr. deal on June 26, 2021. Docon Technologies Pvt Ltd, a subsidiary of the parent company of PharmEasy, API Holdings, has been the acquirer.
PharmEasy has acquired 3 companies
| Acquiree Name | Date | Deal Value |
| Aknamed | September 14, 2021 | $144 million |
| Thyrocare Technologies | June 26, 2021 | $605.70 million |
| Medlife | May 25, 2021 | $250 million |
PharmEasy – Growth and Revenue
| PharmEasy Financials | 2022 | 2023 |
| Operating Revenue | INR 5729 Crore | INR 6644 Crore |
| Total Expenses | INR 8491 Crore | INR 8974 Crore |
| Profit/Loss | Loss of INR 2731.7 Crore | Loss of INR 2289.8 Crore |
PharmEasy Reports 15% Dip in Revenue in FY24, marking a 14.7 per cent decline on a year-on-year (YoY) basis in the financial year 2024 (FY24), PharmEasy, an online pharmacy startup operated by API Holdings, has posted a consolidated revenue from operations of Rs. 5,664 crores in FY24 as compared to Rs. 6,643 crores in FY23.
Competitors of PharmEasy
- Apollopharmacy.in
- 1mg.com
- Netmeds.com
- Lybrate.com
- Myupchar.com
Conclusion
PharmEasy’s immediate focus should be on securing the proposed funding round and stabilizing its financials. By addressing leadership concerns, optimizing operational efficiency, and enhancing customer experience, the company can rebuild investor confidence and position itself for future growth.
PharmEasy’s ability to successfully raise funds at a reduced valuation will be a pivotal moment for the company. It may lead to organizational changes, including investor control and potential dilution of existing shareholders’ stakes. However, the infusion of capital, coupled with renewed strategic initiatives, can pave the way for a turnaround and renewed growth trajectory.
PharmEasy’s journey reflects the highs and lows of the online pharmacy industry, with the current valuation crunch serving as a wake-up call for the company. As investors and stakeholders closely watch its next moves, the fate of PharmEasy will undoubtedly shape the future of India’s online pharmacy sector.
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