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This article is more than 2 month old.

Online drug store PharmEasy targets $9 billion valuation from IPO

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The IPO is slated for later this year. PharmEasy's current valuation is estimated at $1.5 billion, making it India's first e-pharmacy unicorn.

Online drug store PharmEasy targets $9 billion valuation from IPO
Online pharmacy PharmEasy, owned by API Holdings Pvt Ltd, is aiming at a valuation of $9 billion after its initial public offering (IPO). The company’s fund raise through initial share sale is likely to be $1 billion.
The online drugstore is expected to raise the entire amount by selling new shares, said a Livemint report quoting anonymous sources.
According to the report, people aware of the development have also clarified that PharmEasy's existing shareholders, including its founders and investors, are unlikely to sell their shares in the IPO.
The plan to not cash out existing shares reflects PharmEasy's confidence in investors. An individual privy to the development has said the money raised through the public listing will be used to pursue growth opportunities and make more acquisitions.
PharmEasy is likely to roll out its IPO later this year. Earlier this year, it was reported that PharmEasy hired Morgan Stanley and Kotak Mahindra Capital as advisers for its IPO.
In May this year, PharmEasy acquired its rival Medlife to become India’s largest online drugstore. Later in June, the company bought a majority stake in Thyrocare Technologies Limited for $611 million.
Besides, API Holdings, the parent firm of PharmEasy, raised about $420 million in a funding round in June. The company has recorded a threefold valuation jump in less than four months.
Founded by Dharmil Sheth and Dhaval Shah in 2015, PharmEasy is backed by several investors, including Prosus Ventures, TPG Growth, CDPQ, and Temasek. The company delivers medicines in more than 1,000 cities and offers diagnostic services in all major cities and towns in India.
The company's current valuation is estimated at $1.5 billion, making it the first Indian e-pharmacy unicorn.
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