Online pharmacy store PharmEasy aims to raise $9 billion through an initial public offering (IPO), sources close to the matter told LiveMint.
The money will be raised by PharmEasy’s parent company API Holdings Ltd, by selling new shares, according to the sources. None of the existing shareholders, including the investors and founders, will sell their share, sources told.
“The entire proceeds of the listing will be used to pursue growth opportunities,” one of the sources told LiveMint.
“The company plans to make more acquisitions shortly and has been on the lookout for suitable targets that match its long-term objectives,” they further added.
Proses Ventures, TPG Growth, CDPQ and Temasek are among PharmEasy’s top investors. Investors’ decision not to sell their shares indicates their confidence in the company’s growth potential.
PharmEasy was founded in 2015 by Dharmil Sheth and Dhaval Shah. The store currently delivers medicines in 1,000 cities and offers diagnostic services in all major cities and towns. In May 2021, PharmEasy acquired Medlife, becoming the largest online pharmacy in the country. In June API Holdings Ltd bought a 4,546 crore worth stake in Thyrocare Technologies.
According to a report by consultant EY, the e-pharma space is estimated to grow at an annual average growth rate of 18.1% to reach $18.1 billion by 2023.
