Pharmeasy Unlisted Shares (API Holdings Ltd)

Are you looking to invest in a company that is at the forefront of India’s digital healthcare revolution? PharmEasy , operated by API Holdings, is India’s largest digital healthcare platform. Founded in 2015, the company provides end-to-end healthcare solutions – from online medicine delivery and diagnostic tests to teleconsultation and healthcare products – serving every habitable zip code in the country.

With its recent acquisition of Thyrocare (a first for any Indian unicorn) and a massive pan-India network, PharmEasy offers a unique opportunity to invest in a company that is making healthcare affordable and accessible to millions.

1. Company Overview: The Journey of PharmEasy

• Founded: 2015 by Dharmil Sheth (MBA, IMT Ghaziabad) and Dr. Dhaval Shah (MBBS & MBA, XLRI).

• Headquarters: Mumbai, India.

• Mission: To make healthcare affordable and accessible to everyone.

• Position: India’s largest digital healthcare platform by GMV (as per RedSeer Report, March 2021).

• Reach (as of June 2021): Delivers to over 18,587 pin codes across India, covering urban, semi-urban, and rural areas.

2. The PharmEasy Journey: Key Milestones

• 2015: Started in Mumbai, received angel funding.

• 2016: Series-A funding; expanded to 5 cities; launched home diagnostics service.

• 2017: Series-B funding; expanded to 700 cities; launched online delivery of healthcare products.

• 2018: Series-C funding; expanded PAN India presence.

• 2019: Series-D funding; expanded to 22,000+ pin codes.

• 2020: Merged with Ascent Health and 5 other companies to form API Holdings , creating India’s biggest online healthcare company.

• 2021: Acquired a 66% stake in Thyrocare – the first time an Indian unicorn acquired a listed company.

3. Products & Services: An End-to-End Healthcare Ecosystem

PharmEasy offers a comprehensive suite of healthcare services through its user-friendly website and mobile app.

A) Order Online Medicine

• How it works:

  1. User uploads a prescription.

  2. PharmEasy verifies it and sends it to partner medical stores near the user’s pin code.

  3. A PharmEasy delivery agent collects the medicine and delivers it to the user.

B) Healthcare Products

Beyond medicines, PharmEasy offers a wide range of products:

• Nutrition & Wellness

• Personal Care

• Skin Care

• Ayurvedic Products

• Lifestyle Ailments Products

C) Diagnostics Tests

Users can book diagnostic tests through the platform.

• Partner Labs: Initially through Medlife Labs (now acquired by PharmEasy).

• Thyrocare Integration: Following the acquisition, users can now book tests from Thyrocare’s extensive lab network directly through PharmEasy.

D) Teleconsultation

The platform also offers digital tools and information on illness and wellness, along with teleconsultation services, completing the healthcare cycle.

4. PharmEasy Business Model: Simple & Scalable

PharmEasy’s business model is straightforward and effective. It acts as a technology-enabled intermediary connecting buyers, suppliers, and distributors.

Revenue Streams:

1. Commission on Medicine Sales: Earns a 1-2% commission on medicines sold through its platform.

2. Advertising Revenue: Gets paid by pharmaceutical, nutraceutical, and other healthcare companies for displaying their products on the platform.

3. Diagnostics Income: Earns revenue from diagnostic tests booked through its platform and conducted by partner labs (Medlife, Thyrocare).

Value Proposition:

• For Buyers: Access to a broad range of high-quality healthcare products and services at compelling price points, delivered conveniently.

• For Suppliers (Pharmacies, Labs): Access to a large customer base and streamlined order management.

• For Distributors: Efficient last-mile delivery network.

5. Funding History (Selected Rounds)

PharmEasy has attracted significant investment from marquee investors over the years.

(Note: This is a partial list; the company has raised multiple rounds from investors including TPG, Prosus, Temasek, and others.)

6. Key Strategic Move: Acquisition of Thyrocare

In 2021, PharmEasy acquired a 66% stake in Thyrocare Technologies Ltd. for approximately ₹4,500 crore. This was a landmark deal:

• First-of-its-kind: The first time an Indian unicorn acquired a publicly listed company.

• Strategic Rationale: Gave PharmEasy a massive, established footprint in the diagnostics business, with Thyrocare’s network of labs and collection centers across India. It significantly strengthened PharmEasy’s integrated healthcare offering.

7. PharmEasy Shareholding Pattern

(As per the Draft Red Herring Prospectus (DRHP) filed with SEBI, as of March 31, 2022)

The shareholding pattern of API Holdings (PharmEasy’s parent company) includes a mix of founders, promoters, and institutional investors. Key institutional investors include:

• TPG

• Prosus (Naspers)

• Temasek

• CDPQ

• L Catterton

• Eight Roads Ventures

• Think Investments

• OrbiMed

(For the detailed, up-to-date shareholding pattern, please refer to the latest filings or the Unlisted Network platform.)

8. PharmEasy Unlisted Share Price Movement

The unlisted share price of PharmEasy has been volatile, reflecting the broader market sentiment towards tech/growth stocks and company-specific developments.

• Past Performance: The share price saw significant highs during the bull market of 2021.

• Recent Trends: Like many high-growth tech companies, PharmEasy’s valuation in the unlisted market has moderated from its peak. Factors include a delayed IPO, market conditions, and a focus on the path to profitability.

• Current Price: Please check the Unlisted Network Android or iOS mobile app for the latest traded price and historical price charts.

9. PharmEasy IPO News

PharmEasy filed its Draft Red Herring Prospectus (DRHP) with SEBI in late 2021 for a massive IPO. However, the launch was delayed due to volatile market conditions and a strategic review of the business.

• Current Status: The company is focused on strengthening its financial performance, streamlining operations, and achieving profitability before launching the IPO.

• Expectations: The IPO is expected to be one of the most anticipated listings in India once market conditions are favorable and the company is ready.

Key Investment Highlights

1. Market Leadership: India’s largest digital healthcare platform with an unrivalled pan-India reach (18,500+ pin codes).

2. Integrated Ecosystem: End-to-end solutions covering online medicine delivery, diagnostics (Thyrocare), teleconsultation, and healthcare products.

3. Powerful Business Model: Asset-light, scalable model with multiple revenue streams (commission, advertising, diagnostics).

4. Strategic Acquisition: Landmark acquisition of Thyrocare creates a formidable presence in the high-growth diagnostics segment.

5. Strong Investor Backing: Backed by some of the world’s top institutional investors (TPG, Prosus, Temasek).

6. Massive Market Opportunity: Poised to benefit from the rapid digitization of India’s healthcare sector.

7. Experienced Founders: Led by a visionary management team with a deep understanding of the healthcare and technology landscapes.

Risks to Consider

1. Path to Profitability: Like many high-growth platforms, PharmEasy has focused on scale over profits. Achieving sustained profitability is critical.

2. Intense Competition: Faces fierce competition from other players like Tata 1mg, Netmeds (Reliance), Amazon Health, and Flipkart Health+ .

3. Regulatory Risk: The online pharmacy sector in India is subject to evolving regulations. Changes in drug laws or e-pharmacy rules could impact the business model.

4. Valuation Concerns: The company’s valuation has moderated from its peak, and the IPO valuation will be closely watched.

5. Integration Risk: Successfully integrating a large listed entity like Thyrocare into the fold is a complex task.

6. IPO Delay: The delay in the IPO could impact investor liquidity expectations in the near term.

7. Unlisted Liquidity: As an unlisted company, shares are not traded on public exchanges, and liquidity may be limited until the IPO.

The Opportunity: Own a Stake in India’s Digital Healthcare Leader

PharmEasy offers a unique opportunity to invest in a company that is at the forefront of digitizing one of India’s most critical sectors – healthcare. With its market leadership, integrated ecosystem, strong investor backing, and the strategic Thyrocare acquisition, PharmEasy is well-positioned to be a long-term winner. For investors with a long-term horizon and a belief in India’s digital future, PharmEasy is a compelling addition to a diversified portfolio.

Ready to Invest in India’s Largest Digital Healthcare Platform?

Buy Unlisted Shares of PharmEasy (API Holdings) exclusively through Unlisted Network.

Join the journey of making healthcare accessible to all.