Title: PharmEasy's Valuation Plunges by 92%: What Investors Need to Know | Financial Market News
Indian online pharmacy startup PharmEasy, once valued at $5.6 billion, has seen a drastic drop in its valuation, now estimated to be around $458 million. This significant decrease comes as a surprise, considering the startup's recent rights issue to raise funds. Despite raising about $417 million through the rights issue, PharmEasy's implied valuation remains significantly lower.
Investors, including Temasek, TPG, B Capital, and Prosus, have started to cut the worth of their holdings in PharmEasy. The startup had filed for an $843 million IPO in November 2021, but later deferred the plan and opted for debt funding. However, a $300 million loan from Goldman Sachs proved to be costly as the firm struggled to repay the capital and raise new funds through equity.
PharmEasy offers a range of services, including wellness tools, consultations, diagnostic tests, and treatment deliveries. The startup's co-founder, Dharmil Sheth, emphasized the importance of focusing on the team, shareholders, and company amidst challenges.
In a global trend, investors are marking down the value of their startup holdings. This includes Dailyhunt, an Indian news aggregator startup, which saw its valuation decrease from $5 billion to $2.9 billion.
In summary, PharmEasy's plummeting valuation highlights the challenges faced by startups in the current market environment. Investors should be cautious and conduct thorough research before making investment decisions in such volatile times.