PharmEasy raises fresh debt to clear Goldman Sachs loan after 90% valuation cut

Mumbai-based healthtech unicorn PharmEasy has raised Rs 1,700 crore ($193 million) in debt funding led by 360 One, with participation from Alkram Ventures, MVS Ventures, Bennett Coleman, and other investors. 

The debt round is the firm’s third infusion in four years, highlighting its ongoing dependence on high-cost borrowing to service earlier loans.

The fresh debt infusion looks to complete repayment of its Goldman Sachs loan, which it had raised in May 2022 for Rs 2,700 crore at a high interest rate to refinance the Rs 2,200 crore Kotak Mahindra Bank loan used to acquire Thyrocare in 2021. The Goldman Sachs’ loan had certain financial conditions tied to the company’s spending, which were breached in June 2023, though PharmEasy has continued to make all payments on time.

The 360 One-led debt round involves the allotment of 1,700 non-convertible debentures at Rs 10 lakh each, as per the filings with the Registrar of Companies. 360 One contributed Rs 1,231 crore, while Micro Labs Limited put in Rs 210 crore. MVS Ventures invested Rs 78 crore, with Bennett Coleman and Alkram Ventures contributing Rs 50 crore and Rs 42 crore, respectively. Eight other investors, including Kyrush Investments, Medley Pharmaceuticals, and Mahalaxmi Trust, covered the remaining sum.

This fundraising follows a $216 million capital raise in April 2024, which came at a 90% valuation haircut to $710 million from PharmEasy’s $5.6 billion peak in 2021. That round, led by MEMG with participation from Prosus, Temasek, and others, was aimed at shoring up finances amid slowing growth and high debt obligations.

Queries sent to Pharmeasy didn’t elicit any immediate response.

Founded in 2019, PharmEasy offers pharmaceutical products, diagnostics, and teleconsultations through its web and mobile platforms. The company has now completed its third circle of debt, highlighting the ongoing challenge of balancing aggressive growth ambitions with high-cost leverage. Over the past two years, the company saw the exit of all co-founders  and major changes at the leadership level. Changes have also marked this period, with all co-founders exiting and Rahul Guha, MD and CEO of Thyrocare, taking over as MD and CEO of PharmEasy.

For FY25, PharmEasy reported flat revenue of Rs 5,872 crore while cutting losses by 38% to Rs 1,572 crore from Rs 2,533 crore in FY24, signaling modest operational improvements even as debt obligations remain a critical focus.