Janus Henderson downgrades investments in PharmEasy’s parent company, API Holdings, to $2.7 billion, less than half its September 2021 valuation. Other investors, including Neuberger Berman, have also reduced their investments in the Indian startup. Similar valuation cuts have affected other Indian startups like Meesho, Swiggy, Byju’s, Pine Labs, and Ola.
Asset management company Janus Henderson has recently decreased its investments in API Holdings, the parent entity of online pharmacy PharmEasy, according to regulatory filings with the US Securities and Exchange Commission (SEC). The company’s valuation of its investments in PharmEasy dropped to $2.7 billion as of March 31, 2023, less than half of its September 2021 valuation of $5.6 billion. Janus Henderson notified the SEC of these revised valuations in a filing on May 30.
Janus Henderson had previously valued its investments in PharmEasy at $2.8 billion as of December 31, 2022, in another filing with the SEC. The downgrade in investments was driven by PharmEasy’s failure to meet loan covenant terms for its high-cost debt from Goldman Sachs, leading Janus Henderson to revise its valuation.
Neuberger Berman, another investor in PharmEasy, also downgraded its investments in the company to $4.4 billion as of February 28. Asset management companies regularly review their portfolio companies and adjust valuations based on factors such as company performance and market outlook.
Not only PharmEasy but several other Indian startups including Meesho, Swiggy, Byju’s, Pine Labs, and Ola have also experienced valuation cuts. Investors such as Invesco, Blackrock, Fidelity, and Vanguard have revised their valuations for these companies, resulting in downgrades. PharmEasy itself was valued at $5.6 billion during its last funding round and raised approximately $350 million from investors including Amansa Capital, ApaH Capital, and Janus Henderson.
