PharmEasy
-22.72 % 1 MAbout PharmEasy
A Comprehensive Overview of Price & Journey
Understanding PharmEasy Inception and Growth
Overview
PharmEasy, one of India’s leading digital healthcare platforms, was founded in 2015. It faced many challenges throughout its journey, like IPO delay and restructuring its financial structure. It is collaborating with Swiggy for rapid medicine deliveries to fulfill all the demands. It expanded by acquiring players in the healthcare sector like Thyrocare, Retailio, and Aknamed. They also have a large no. of trusted doctors across India, which provides detailed consultation to their customers online. It provides online consultations, medicines, healthcare products, medical tests, and services from registered and leading laboratories and companies working in the domain.
The company operates a consumer healthcare app called PharmEasy that enables the home delivery of pharmaceutical products to its customers.
API Holdings is the parent company of Pharmeasy, Incorporated on March 31, 2019, the company is India’s largest digital healthcare platform (based on GMV of products and services sold for the year ended March 31, 2021), according to the RedSeer Report.
API Holdings operates an integrated, end-to-end business that aims to provide solutions for the healthcare needs of consumers across the following critical stages:
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It helps in providing digital tools and information on illness and wellness.
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It provides teleconsultation.
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It offers diagnostics and radiology tests,
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It provides delivery of treatment protocols, including products and devices.
Business Model
Company earns its revenue from the sale of its products and services.
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Sale of products:
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Distribution to Retailer: The company secures products from pharmaceutical companies, manufacturers, and wholesalers and sells them to retailers, which include products like OTC, surgical, and private label products.
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Distribution to Chemist: Retailio, a pharmaceutical marketplace that connects pharmacies, hospitals, and clinics with suppliers and distributors. The company sells its products to local chemists through Retailio.
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Distribution to Hospitals: The company sells its products through Aknamed, a healthcare supply chain company specializing in procurement and distribution for hospitals.
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Sale of services:
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Diagnostic services: Thyrocare, a leading diagnostic chain it offers more than 900+ diagnostic tests, which was acquired by the company in 2021. Through this, the company wants to provide a premium experience to the customer.
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Other services: It also provides technology services, software services for doctors and pharmacies.
Company focuses on the following to become profitable:
Focus on quality: It provides better quality medicine, which gains customer interest.
Focus on high value profitable customers: The company focuses on high-value profitable customers who order in bulk quantities and it helps the company to grow faster and become profitable.
Maximizing capacity utilization: The company aims to maximize its capacity utilization by integrating the supply chain across the country.
Margin enhancement: Company sells its own private label brands on high margin to become profitable. Higher margin leads to high profitability.
Cost Optimization:
Workforce Rationalization:By optimizing the supply chain, The company optimizes its employee expenses.
Expense Rationalization: It focuses on reducing its expenses on Marketing and acquiring lifetime revenue customers, which can make it profitable.
Cash Conservation:
Working Capital Optimization: The company focused on working capital optimization by optimization of inventory management and improved collections for receivables, particularly within the chemist and hospital business.
Changes in subsidiaries, associates, and joint ventures
Details of change in subsidiaries and joint ventures of the Company during the financial year are detailed below:
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Acquisition of Think Health Diagnostics Private Limited
During the financial year under review, Thyrocare Technologies Limited, a step-down subsidiary of the Company had acquired a 100% stake in Think Health Diagnostics Private Limited (“Think Health”) by way of purchase of equity shares from all the existing shareholders of Think Health..
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Acquisition of equity shares of Care Easy Health Tech Private Limited
The Company acquired 20% of the share capital of Care Easy Health Tech Private Limited (“Care Easy”). Pursuant to the aforesaid acquisition, the holding of the Company in Care Easy increased from 80% to 100%.
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Joint Venture in the name of Thyrocare Laboratories (Tanzania) Limited
During the financial year under review, Thyrocare Technologies Limited, a subsidiary of the Company entered into a subscription agreement for incorporating a joint venture company in Tanzania, the first overseas venture of the Group.
Dividend Details
The company has not recommended any dividend for the financial year under review.
IPO Details
The company planned to raise around $843 million when it filed its DRHP (Draft Red Herring Prospectus) in November 2021 with SEBI (Securities and Exchange Board of India). It planned to use the IPO money for Debt Repayment of around 1929 crores, Growth and expansion, and Acquisitions.
DRHP was withdrawn by the company in August 2022 due to the highly volatile market, global economic concerns, and inflationary pressures. In October 2023, ₹2,500 crore was converted from debt into equity to reduce cash outflow.
In April 2024, the Company raised INR 3,500 crore through a Rights Issue. PharmEasy may think of filing its DRHP once it stabilizes its profitability and market conditions improve. Investors are closely watching developments, particularly any updates related to the Pharm Easy share price once it lists publicly.
About PharmEasy
IPO Details, Price movement
Financial Snapshot PharmEasy Unlisted Shares
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The Revenue from Operations for the FY24 was Rs. 5664.28 Crores, which is less than the year FY23, which was Rs. 6643.93 Crores.
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The main revenue comes from Sales of goods, which relates to the trading and distribution of pharmaceutical and cosmetic goods. In FY24 the revenue from the sale of goods was Rs. 5007.71 Crores, and in FY23 was Rs. 5925.34 Crores.
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Another source of revenue is Sales of services and Sale of services primarily relate to diagnostic services. Revenue generated by this segment in FY24 was Rs. 652.3 Crores, and in FY23 the revenue was Rs. 701.27 Crores, showing that revenue from services is lower than the previous year.
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Pharmeasy has issued CCPS B, which is the right issue at 1:17 @ 96.80. Shareholders will get 1 CCPS against 17 Equity Shares.
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Finance cost: Finance cost increased by 9.4% from INR 665 crores in FY23 to INR 727 crores in FY24. Company needs to manage its finance cost so that it can earn a profit accordingly.
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Employee benefits expense: Employee benefit expenses reduced by around 45.5% from INR 1283 crores in FY23 to INR 699 crores in FY24.
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Depreciation and amortization expense: Depreciation and amortization expenses reduced by around 11.3% from INR 243 crores in FY23 to INR 216 crores in FY24.
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Other expenses: Other expenses reduced by around 42.8% from INR 982 crores in FY23 to INR 562 crores in FY24.
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Total Expenses for the FY24 were also lower and stood at Rs. 7254.8 Crores in comparison to the previous year FY23 that is Rs. 8974.01 Crores.
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The Profit/(Loss) Before Tax generated by the company was (Rs. 2521.97) Crores and for FY23 was (Rs. 5196.52) Crores, showing the loss becomes half in comparison to the previous year, despite a decrease in revenue of only 17.28% from the previous year.
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The Profit/(Loss) After Tax for the FY24 was (Rs. 2533.51) Crores and for FY23 was (Rs. 5202.561) Crores.
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The Company spent Rs. 61.13 Crores on Operating activities, Rs. 1260.95 Crores on Investing activities, and there is a cash inflow of Rs. 1456.83 Crores in Financing activities, as there is issue of compulsorily convertible preference shares of Rs. 2000.08 Crores.
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There is a slight increase in Total Assets for the company for the FY24 was Rs. 8389.66 Crores compared to the previous FY23, which was Rs. 8256.41 Crores.
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The company issued 6,240,435,432 equity shares of Re.1/- each in FY24.
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The Marquee Investors for the company are Naspers Ventures BV, Macritchie Investments Pte Ltd, and TPG Growth VSF Markets Pvt Ltd.
Board of Directors
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Mr. Hardik Dedhia and Dr. Dhaval Shah.
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Dr. Ranjan Pai, Mr. Shyam Powar and Mr. Dovaldas Buzinskas.
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Mr. Dharmil Sheth and Mr. Harsh Parekh
SHAREHOLDING PATTERN:
|
SHAREHOLDER |
HOLDING (%) |
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Naspers Ventures B.V. |
13.03% |
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MacRitchie Investments Pte. Ltd |
11.74% |
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TPG Growth V SF Markets Pte. Ltd |
7.20% |
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Evermed Holdings Pte Ltd. |
6.35% |
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Prasid Uno Family Trust |
4.39% |
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Others |
57.29% |
Conclusion
The Company is generating losses, but what is good about the business is that it has already reduced its losses by 50% compared to the previous year, and there is a lot of potential in the business, as today the demand for the door-to-door services has increased.
The Company successfully raised funds through the issuance of compulsorily convertible preference shares and equity shares provided a positive cash inflow for the company and indicated strategic financial stabilization despite ongoing losses.
The Financials snapshots show that in the coming year,s the business has the potential to grow and also generate higher profits and give a return to its shareholders, and according to us, the company has just started that path
SHOW MORE...Fundamentals
Financials
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | - | 5728.82 | 6643.94 | 5664.29 |
| Other Income | - | 52.18 | 55.83 | 94.66 |
| COGS | - | 85.46 | 156.92 | 164.51 |
| Gross Profit | - | 5695.54 | 6542.85 | 5594.43 |
| Total Expense | - | 8247.35 | 8573.32 | 699.36 |
| EBIDTA | - | -2551.81 | -2030.80 | -1279.91 |
| D&A | - | 158.79 | 243.44 | 215.95 |
| EBIT | - | -2710.59 | -2274.24 | -1495.86 |
| Interest Expense | - | - | - | - |
| PBT | - | -3983.95 | -5196.22 | -2522.85 |
| TAX | - | 21.73 | 15.21 | 11.54 |
| PAT | - | -4005.67 | -5196.22 | -2522.85 |
| Diluted EPS | - | -7.28 | -8.51 | -4.07 |
| Basic EPS | - | -7.28 | -8.51 | -4.07 |
| Total income | 0.00 | 5,781.00 | 6,699.77 | 5,758.95 |
ASSETS
| CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Cash and Cash Equivalents | - | 154.40 | 193.65 | 327.99 |
| Trade Payables | - | 860.85 | 905.03 | 706.21 |
| Inventory | - | 761.24 | 688.16 | 555.56 |
| Other Current Assets | - | 725.72 | 748.02 | 1886.49 |
| Total Current Assets | 0.00 | 2,502.21 | 2,534.86 | 3,476.25 |
| NON CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Plant Property and Equipment | - | 361.38 | 337.90 | 286.24 |
| Long Term Investment | - | - | - | - |
| Other Non Current Assets | - | 8534.74 | 5383.65 | 4627.17 |
| TOTOAL NON CURRENT ASSSETS | 0.00 | 8,896.12 | 5,721.55 | 4,913.41 |
| Total Assets | 0.00 | 11,398.33 | 8,256.41 | 8,389.66 |
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| CURRENT LIABILITES | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| TRADW Payable | - | 458.88 | 413.41 | 412.91 |
| Other Current Liab | - | 3302.73 | 1909.81 | 3089.57 |
| Total Current Liab | 0.00 | 3,761.61 | 2,323.22 | 3,502.48 |
| NON CURRENTLIABILITIES | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Long Term Debt | - | 100.07 | - | - |
| Deffered Tax Liab | - | 196.76 | 179.37 | 173.27 |
| Other Non Current Liab | - | 317.41 | 3316.93 | 2125.60 |
LIABILITIES
| EQUITY | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | - | 614.20 | 614.20 | 624.04 |
| Reserves And Surplus | - | - | - | - |
| Other Equity | - | 6408.28 | 1822.69 | 1964.27 |
| Retained Earnings | - | - | - | - |
| share Equity | 0.00 | 7,022.48 | 2,436.89 | 2,588.31 |
| Total Liabilities | 0.00 | 7,636.72 | 5,933.19 | 4,887.18 |
|---|
| CASH FLOW STAT | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Cash Flow from operating | - | -2589.37 | -746.59 | -61.14 |
| Cash Flow from financing | - | 8305.37 | 853.49 | 1456.83 |
| Cash Flow from investing | - | -5789.21 | -71.08 | -1260.95 |
| Net cash flow | 0.00 | -73.21 | 35.82 | 134.74 |
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Shareholding Pattern
2025
| Name | Designation | Share % |
|---|---|---|
| Naspers Ventures B.V. | NA | 13.03% |
| MacRitchie Investment Pte. Ltd. | NA | 11.74% |
| TPG Growth V SF Markets Pte. Ltd | NA | 7.20% |
| Evermed Holdings Pte. Ltd | NA | 6.35% |
| Prasid Uno Family Trust Through Its Trustee Surbhi Singh | NA | 4.39% |
| Others | NA | 57.29% |
Events
| Name | Date | Details |
|---|---|---|
| No events available. | ||
Frequently Asked Questions
- The lockin period is of 6 months for pre-ipo investors i.e. they cannot sell their shares for 6 months after they get listed. However, they can definitely sell the shares in pre-ipo market before they get listed.
- With BharatInvest, you can now invest in unlisted/pre-ipo shares with as low as 25-50k depending upon the share.
- 1. You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
- 2. Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
- The value of share in unlisted space is determined in the same way as it is done in listed market. Demand and supply decide the price of any share. If the demand more than the supply, then the prices of the share increases and vice versa.
- When a new shares is introduces in the unlisted space, the value of the company is decided upon the last funding raised by company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
- A Public Unlisted Shares Is Not Listed on Stock Exchange, Where as a Listed Public Company Is Listed On Stock Exchange Such As BSE Or NSE For Trading Of Shares.
- If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.
- If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 12.5% without indexation benefits.
- After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.
- Absoluetly NOT! Grey market is all about speculation relation to open price, subscription rate etc. And does not include physical delivery of shares. Whereas in pre ipo market you get to invest in shares much before the ipo too and it involves physical delivery of shares. It is compeletly legal and does not include any such speculation.
- Existing stakeholders, promoters or employees who have equity shares of an unlisted company and early investors who wish to get value of their investment.
- Yes, investing in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market.