Entrepreneur and Former BharatPe co-founder Ashneer Grover has been vocal about his share of criticism towards PharmEasy’s plan to raise $300 million. The former judge in the popular reality show Shark Tank India has asserted that the development to rise funds would mean “The end” for the stakeholders.
He said that a ‘down round’ with a combination of ‘anti-dilutive clause’ would result in “sudden death” of the founders.
PharmEasy is aiming to raise $300 million in the latest round of funding when it is facing a whopping 90% market down. Ashneer in his tweet explained, “Anti-dilutive clause will kick-in, meaning VC investors who invested in the company at more than Rs 5 per share ever will get more shares so their holding cost comes to Rs 5 per share. Simply even last round VC investors who invested at Rs 55 per share will get 10x more shares for free so their holding comes to rs 5 per share. Everyone BUT the founders and employees!”
As per a TechCrunch report, PharmEasy is in talks to raise new capital in order to pay their lender Goldman Sachs. The company previously borrowed close to $285 million to close off their earlier debts in 2022. This lead to Thyrocare owning majority stake in PharmEasy at $600 million.
Ashneer Grover further warned, “Founders plus ESOP holding will become 0.001% of some similar faction! Debt taken in 2021 will turn out to be the most expensive capital raised by the founders ever”.
