As of December 31, 2022, Janus Henderson valued its stake in the company at a valuation that was cut in half, or about $2.8 billion.

The parent firm of online pharmacy unicorn PharmEasy, API Holdings, has had its valuation cut in half to about $2.8 billion by US investor Janus Henderson. According to The Economic Times, which cited US Securities and Exchange Commission (US SEC) filings, Janus Henderson cut the value of its stake in the company in half, resulting in an estimated valuation of $2.8 billion as of December 31, 2022.  

The adjustment was made after Neuberger Berman, a New York-based investment management firm, decreased PharmEasy’s valuation by 21% to $4.4 billion as of February 28. In October 2021, PharmEasy raised $350 million in investment, with a valuation of $5.6 billion. Leading this funding round were Janus Henderson, Singapore’s Amansa Capital, and ApaH Capital, a hedge fund backed by Blackstone.  

With this, PharmEasy has joined online businesses such as BYJU, a company that provides edtech services, Pine Labs, a fintech company, Ola cab service, a company that delivers food and other goods, Swiggy, and others. Investors have repeatedly reduced their valuations of these companies due to layoffs, cost-cutting initiatives taken by different businesses, and the unstable economic climate.  

In the meantime, the business reported its first EBITDA profit since its founding in April of this year, amounting to about Rs 14 crore, along with net sales of Rs 600 crore. Based on its April results, the company has a net revenue run rate of Rs 7,200 crore. Additionally, PharmEasy informed its board that it hoped to reach cash-positive status by September 2023.  

“During the same month last year, they had EBITDA of almost – Rs 80 crore. According to a source with knowledge of the situation, the corporation, which has been under pressure to reduce expenses, “has been aggressively consolidating operating costs and streamlining its acquisitions, which led to April numbers.”  

Following PharmEasy’s first profit, API Holdings is in discussions for a new round of funding with its current backer, the Canadian pension fund Caisse de Depot et Placement du Quebec (CDPQ), as well as ADQ of Abu Dhabi. This round of capital financing, which is expected to be valued at $50 to $100 million, might include convertible notes.