Mumbai: The online pharmacy, PharmEasy which is owned by API Holdings is targeting a valuation of $9 billion after its initial public offering (IPO). The company’s fund raise through initial share sale is likely to be $1 billion.
As per news report, the online pharmacy store is expected to raise the entire amount by selling new shares.
According to the report, people aware of the development have also clarified that PharmEasy’s existing shareholders, including its founders and investors, are unlikely to sell their shares in the IPO.
The plan to not cash out existing shares reflects PharmEasy’s confidence in investors. An individual privy to the development has said the money raised through the public listing will be used to pursue growth opportunities and make more acquisitions.
PharmEasy may roll out its IPO in the later half of the year. Earlier this year, it was reported that PharmEasy hired Morgan Stanley and Kotak Mahindra Capital as advisers for its IPO.
API Holdings bagged about $420 million in a funding round in June. The company has recorded a threefold valuation jump in less than four months.
Founded by Dharmil Sheth and Dhaval Shah in 2015, PharmEasy is backed by several investors, including Prosus Ventures, TPG Growth, CDPQ, and Temasek. The company delivers medicines in more than 1,000 cities and offers diagnostic services in all major cities and towns in India.
The company’s current valuation is estimated at $1.5 billion, making it the first Indian e-pharmacy unicorn.
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