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RECOMMENDATION

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RATING

RECOMMENDATION

Sell

Business Type

Dominant Leader

Discover and get complete analysis on Pharmeasy Pre IPO unlisted shares - Management, Business Model, Financials,  Pharmeasy Revenue Growth, Valuations, Funding Rounds, Pharmeasy News and latest updates on Pharmeasy Share Price.

ISIN

INE0DJ201029

Face Value

₹1.00

Total Share

6,09,81,09,930

Total Income

₹2,360.66 Cr

Profit After Tax

-₹641.34 Cr

EPS

-₹206.77

P/E

-0.50

P/B

33.14

Market Capitalisation

₹63,420.34 Cr

Enterprise Value

₹63,925.51 Cr

Book Value

₹3.14

Earnings Yield

-198.82 %

Sector

Health Care

Sub-sector

Pharmaceuticals

Category

Pre IPO

Cashflow - Operations

-₹813.68 Cr

Cashflow - Financing

₹1,019.02 Cr

Pharmeasy Growth

Compounded Sales Growth

  • 220.11%

    1 Year

Pro Only

Compounded Profit Growth

  • NA

    1 Year

Pro Only

Return On Equity

  • -33.51%

    1 Year

Pro Only

About Pharmeasy

  • API Holdings Limited, through its subsidiaries, develops and operates an integrated digital healthcare platform. The company offers teleconsultation; diagnostics and radiology tests; and RedBook, an enterprise resource planning (ERP) and customer relationship management software for pharmacies. 
  • The company operates a consumer healthcare app called PharmEasy which enables on demand, home delivery of pharmaceutical products to the customers.
  • It also provides call center management, medical and legal transcription, data processing, warehousing, and database management services.
  • In addition, the company offers pharmaceutical, medical, and health care products; nutraceutical products; generic drugs; and dietary and food supplements, as well as surgical instruments and equipment.
  • Further, it deals, buys, and sells computer hardware, computer systems, and assemble data processors. Additionally, the company engages in the wholesale and retail of pharmaceuticals, antibiotics, drugs, medicines, biologicals, nutraceuticals, healthcare, ayurvedic, and dietary supplement products; medicinal preparations and vaccines; and wellness and health related products.
  • It serves pharmacies, hospitals, clinics, and doctors
  • The company has grown a lot since its inception and presently, in 2021, has 26 subsidiaries including Aknamed, Docon and Thyrocare.
  • API Holdings is the holding entity for the PharmEasy group. API Holding was incorporated on March 31, 2019 and heads its operations from its office in Mumbai, Maharashtra.

  • Pharmeasy IPO Details

API Holdings Limited has filed its DRHP on 8th November 2021 and will be coming out with their IPO in this financial year.

According to the DRHP the entire IPO only consists of a fresh issue, which means that none of the existing shareholders of the company are selling their stake in the company. Their decision to not to cash out during the IPO indicates confidence among company’s investors about the growth potential of the company.

The company may also consider a further issue of equity shares via a private placement of up to ₹1250 crore as mentioned in their DRHP.

Pharmeasy
Fresh Issue

₹ 6250.00 Cr

Pharmeasy
Total IPO Size

₹ 6250.00 Cr

  • Pharmeasy Funding

Funded By Funding Amount Date of Investment Funding Round Fund Name
VestinWolf Capital Management - 01 Nov 2021 - Private Equity Round
Trifecta Capital Advisors - 20 Oct 2021 - Debt Financing
IIFL Finance $ 146 M 18 Oct 2021 Secondary -
Steadview Capital $ 204 M 18 Oct 2021 - Venture Round
Arokiaswamy Velumani $ 500 M 07 Jul 2021 - -
B Capital Group $ 20 M 17 Jun 2021 Secondary -
Prosus Ventures, TPG Growth $ 390 M 07 Apr 2021 Series E -
Temasek Holdings $ 220 M 27 Nov 2019 Series D -
Eight Roads Ventures India $ 50 M 26 Sep 2018 Series C -
InnoVen Capital ₹ 450 M 11 Sep 2018 - Debt Financing
  • Pharmeasy Merger & Acquisition

Acquisition

  • Docon Technologies Private Limited (the “Acquirer”), a wholly owned subsidiary of API Holdings entered into a share purchase agreement dated June 25, 2021 for the purchase of 34,972,999 equity shares of Thyrocare aggregating to 66.14% of the equity share capital for an aggregate consideration of ₹ 45,464.90 million. Further, the Acquirer made an open offer to the shareholders of Thyrocare for acquisition of upto 13,755,077 equity shares of Thyrocare and ended up acquiring 2,683,093 equity shares at a price of ₹ 1,300 per equity share, aggregating to 5.07% of the equity share capital. The transaction was consummated on September 2, 2021, being the date when the company acquired the control of Thyrocare.
  • On 19th August 2021, API Holdings(Pharmeasy) acquired 12,04,133 equity shares and 9,75,925 equity shares of Aknamed for a consideration of ₹3,687.00 million and ₹3,080.00 million respectively. Further, the company purchased 76,075 equity shares of Aknamed through a share purchase agreement dated August 19, 2021 from certain angel investors. API Holdings(Pharmeasy) has made this acquisition to position itself as a broader online healthcare firm, diversifying from being just an online medicine delivery platform.
  • The company purchased 2,440,057 securities of Medlife International Private Limited from Ananth Sankaranarayanan, Prasid Uno Family Trust, Ananth Sankaranarayanan Family Trust, Matrix Partners India Investments Holdings II, LLC, Matrix Partners India Investments II Extension, LLC, Times Internet Limited, Dream Incubator Inc. (“Medlife Shareholders”) for an aggregate consideration of ₹ 10,827.61 million provided under the Medlife SPA by way of issue of 17,94,588 CCPS XVI, 1,29,023 CCPS XVII and 9,544 CCPS XVIII of our Company to Medlife Shareholders in accordance with the securities subscription agreement dated December 16, 2020. Further, as part of the Medlife SPA, the Company entered into CCD agreement dated December 16, 2020 with Ivy Icon Solutions LLP for transferring the existing compulsorily convertible debentures held by Ivy Icon in Medlife International Private Limited in consideration of issuance of CCDs to Ivy Icon by our Company. 

Investments

  • On October 14, 2021, the company acquired 49.17% of the equity share capital of Marg ERP Limited for a consideration of ₹ 2,548.00 million. Marg is into the business of B2B Pharma, software and solutions.
  • On August 10, 2021, the company acquired 19.99 % of the equity share capital of Aarman Solutions Private Limited for a consideration of ₹ 99.95 million. Aarman is the 100 % owner of Axelia Solutions Private Limited, the entity which operates the PharmEasy marketplace. 
  • Pharmeasy Subsidiaries

  • Medlife Wellness Retail Private Limited
  • Akna Medical Private Limited
  • Ascent Wellness and Pharma Solutions Private Limited
  • Shell Pharmaceutical
  • Threpsi Solutions Private Limited
  • Aycon Graph Connect Private Limited
  • ARZT and Health Private Limited
  • Docon Technologies Private Limited
  • AHWSPL India Private Limited
  • Instinct Innovations Private Limited
  • Ayro Retail Solutions Private Limited
  • Avighna Medicare Private Limited
  • D. C. Agencies Private Limited
  • Desai Pharma Distributors Private Limited
  • Eastern Agencies Healthcare Private Limited
  • VPI Medisales Private Limited
  • Aarush Tirupati Enterprise Private Limited
  • AKP Healthcare Private Limited
  • Aryan Wellness Private Limited
  • Aushad Pharma Distributors Private Limited
  • Dial Health Drug Supplies Private Limited
  • Mahaveer Medi-Sales Private Limited
  • Reenav Pharma Private Limited
  • Venkatesh Medico Private Limited
  • Muthu Pharma Private Limited
  • Pearl Medicals Private Limited
  • Rau and Co Pharma Private Limited
  • Metarain Distributors Private Limited
  • Allumer Medical Private Limited
  • Shreeji Distributors Pharma Private Limited
  • Vardhman Health Specialities Private Limited
  • Cosaintis Products Private Limited
  • Healthchain Private Limited
  • Supplythis Technologies Private Limited
  • Nueclear Healthcare Limited
  • Thyrocare Technologies Limited

Pharmeasy Business Model

  • Medlife Wellness Retail Private Limited operates as a healthcare company. The Company offers online medicines, wellness products, book doctor consultation.
  • Akna Medical Private Limited is a hospital-focused supply chain platform, enabling hospitals to simplify, optimise and monitor procurement and consumption using a cloud-based technology platform, national infrastructure and a complete product basket.
  • Ascent Wellness and Pharma Solutions Private Limited a pharma supply chain company focused at automation and innovation in backend processes to improve  accessibility and affordability of effective healthcare for all.
  • Shell Pharmaceutical is a Haryana based pharmaceutical company ,established in 1995, with the vision of making high quality medicines. Shell Pharmaceutical is a research driven forward looking pharmaceutical company with expertise in development of various finished dosage.


  • Pharmeasy Revenue Segmentation

  • Distribution to chemists/institution
  • Distribution to retailers
  • Services of delivery
  • Other revenue
  • Pharmeasy Product & Services

  • Prescription/OTC pharmaceuticals
  • Consumer healthcare products
  • Comprehensive diagnostic test services
  • Teleconsultations
  • Pharmeasy Assets

  • The company owns INR 202.53 million worth of office equipment.
  • The company owns INR 219.37 million worth of computer and hardware.
  • The company has recently added INR 31.01 million of plant and machinery increasing it's total holding to INR 36.72 million.
  • Pharmeasy Industry Overview

Industry Statistics

  • The healthcare sector consists of businesses that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare and pharmaceuticals to patients.
  • India’s domestic pharmaceutical market has an estimated value of US$ 42 billion in 2021. The industry's growth rate in the last decade was 8.5% and has been lower at 6.2% over the past five years. Despite the fall in growth rate of the pharmaceutical industry over past five years, factors that have lead to recent improvement in growth rate include expansion to new geographies, widening the coverage of pharma and over the counter products sold by the company, improved delivery times etc.
  • Apart from over the counter sales, a new trend that has been seen in the pharmaceutical industry is the online sale of pharmaceuticals. The online pharmacy market in India has been growing rapidly and the prevalent pandemic conditions acting as a catalyst to its growth. The online pharmacy market is currently valued at $360 million in 2021.
  • The online pharmacy market has grown because of factors like increased smartphone penetration which as per projections by RedSeer will comprise of 52-59% of India’s population, favorable government initiatives towards digitization, shift in preference towards online shopping which can be seen by the number of online shoppers increasing from 120-150 million in 2019 to 160-180 million in 2020 as per RedSeer, consumers trusting online brands to deliver original products etc. Another major factor increasing the growth of the entire pharmaceutical industry, both online and offline, was the huge surge in Covid-19 pandemic witnessed by the country. 
  • The regulations in the industry include Draft Drugs and Cosmetics rule 2018, Drugs and Cosmetics act 1940, Drugs and Cosmetics rules 1945, Pharmacy Act 1948, The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954.
  • Competitors of the company include NetMeds, Practo, 1mg, Apollo Pharmacy etc.

Future Prospects

  • India’s domestic pharmaceutical market is estimated at US$ 42 billion in 2021 and likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030.
  • According to EY, the online pharmacy market in India is estimated to reach $2.7 billion by 2023 from $360 million which it is currently at in 2021
  • Medicine spending in India is projected to grow 912% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending.

Government Initiatives

  • In June 2021, Finance Minister Ms. Nirmala Sitharaman announced an additional outlay of Rs. 197,000 crore (US $26,578.3 million) that will be utilised over five years for the pharmaceutical PLI scheme in 13 key sectors such as active pharmaceutical ingredients, drug intermediaries and key starting materials.
  • The Digital India Program was started by the government in 2015 to digitally connect every corner of India including the rural areas and remote villages with high speed internet. The aim of this campaign was to empower citizens to gain knowledge and use the government services easily and to make people interact with the government. Over the years this program has increased the number of online users to a large extent and has helped online businesses in increasing their consumer base.
  • Under Union Budget 2021-22, the Ministry of Health and Family Welfare has been allocated Rs. 73,932 crore (US$ 10.35 billion) and the Department of Health Research has been allocated Rs. 2,663 crore (US$ 365.68 billion). The government allocated Rs. 37,130 crore (US$ 5.10 billion) to the 'National Health Mission’.
  • To achieve self-reliance and minimise import dependency in the country's essential bulk drugs, the Department of Pharmaceuticals initiated a PLI scheme to promote domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four separate ‘Target Segments’ with a cumulative outlay of Rs. 6,940 crore (US$ 951.27 million) from FY21 to FY30.
  • PM Aatmanirbhar Swasth Bharat Yojana was allocated Rs. 64,180 crore (US$ 8.80 billion) over six years. The Ministry of AYUSH was allocated Rs. 2,970 crore (US$ 407.84 million), up from Rs. 2,122 crore (US$ 291.39 million). This will assist healthcare related service industries to grow in the long run.

Pharmeasy Awards & Achievements

  • Pharmeasy has been selected in the list of top 100 Most Promising Brands in India 2016 and has been rated as the most admired brand in the healthcare category in the country.
  • The founders of Pharmeasy, Dhaval Shah and Dharmil Sheth, were named in Forbes 30 under 30 list on 17 February 2017.
  • The company was the winner of the second annual CB Insights Digital Health 150 in 2020.

Pharmeasy Strengths

  • The company has a first mover advantage in the industry due to which it has captured a wider market than any of it's peers. This first mover advantage has also helped pharmeasy to establish a strong brand name in the market.
  • The revenue of the company has grown by a massive 220% in FY'21 over FY'20 which was majorly due to a huge surge in the demand for pharmaceuticals and healthcare products as a result of rise in pandemic.
  • The company has recently entered into the diagnostic test provision services segment, which has allowed it to tap a larger market due to increased awareness on self care and precaution as a result of the widespread pandemic in the country.

Pharmeasy Shortcomings

  • The company's total debt has increased by 120% in FY'21 over FY'20 which is will negatively impact the solvency position of the company and will hamper growth in the long run.
  • The cash and cash equivalents of the company has increased massively from INR 58 Cr. to INR 323 Cr. in FY'21. The company should look to invest in areas where they can earn a higher return.
  • The company has accustomed its customers to large discounts on pharmaceuticals round the year. This will make it harder for the company to earn a higher return even in the future years.

Pharmeasy Opportunities

  • The company should look to diversify into live online counselling with health experts. With the world looking towards a shift in the work culture and new normal, people are looking to get health consultations too from anywhere. The company should look to take this opportunity as a step towards the future.

Pharmeasy Threats

  • Even though the revenue of the company has grown massively, the company has not been able to convert the higher revenues to profits and further the losses of the company have increased massively instead. This is harmful for growth in the long run.
  • The company faces stringent competition from its competitors in the market, who have despite of making a recent entry are putting in full force to emerge as leaders in the market.
  • The company has raised a lot of money as debt but has still not attained profitability in FY'21. The company's solvency will be at risk if they do not increase their profitability in the near future.
Pharmeasy Rating

  • RECOMMENDATION

    Sell

  • Pharmeasy Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

27/11/2021

Registered Date

31/03/2019

Planify Ticker

PHA

Reg Office: 902, 9th Floor, Raheja Plaza 1, B-Wing, Opposite R-City Mall, L.B.S Marg, Ghatkopar (W), Mumbai, Mumbai City, Maharashtra.

Website: https://www.apiholdings.in/