PharmEasy Company

PharmEasy Company – Key products, management, strategic actionable insights

PharmEasy Company

PharmEasy company and its operation:

PharmEasy was founded by Dharmil Sheth and Siddharth Shah in Mumbai, India in 2015. The idea behind starting this company is to make healthcare in India easily available. API Holdings Private Limited is the parent organization of PharmEasy. The company delivers medicines in 1000+ cities in India, covering 22000+ pin codes and 36 subsidiaries in India.

PharmEasy is India’s leading and most trusted online healthcare aggregator in the country. The company offers pharmaceutical and healthcare products and diagnostic tests through online pharmacies and medical stores. It also offers 1 lakh+ medicine and health products across various categories through its retail partners across the country. PharmEasy is all about a health tech startup, offering services such as teleconsultation, medicine deliveries, and diagnostic test sample collection.

PharmEasy helps patients connect with local pharmacy stores and diagnostic centers to get their extensive medical needs easily. It also can be treated as an e-commerce platform where one can buy medicines and other healthcare equipment by uploading an image of the prescription on the web app or website. This prescription is dispatched to a medical store near the customer’s area and then the order is delivered to the doorstep of the customer.

PharmEasy Key Products & Services:

PharmEasy has a strong range of products across the different categories of medicines, healthcare equipment, diagnostic tests, etc. The company gets products from the most famous and trusted brands including Accu-chek, Dettol, Horlicks, Baidyanath, Sebamed, etc. It also sells products like Covid Essential, Personal Care, Health Food and Drinks, Beauty & Skin Care, Ayurvedic Care, Fitness & Supplements, Mother & Baby care, home care, Healthcare Devices, Diabetic Care, Elderly Care, Accessories ND wearable, etc.

PharmEasy Management team:

PharmEasy is run by a strong team. Siddharth Shah, Harsh Parekh, Hardik Dedhia, Dhaval Shah, and Dharmil Sheth are the founders of the company. Among other top management of the company, Aditya Puri is Chairman and Non-Executive Director, Chebolu V. Ram is Chief Financial Officer, and Abhinav Yajurvedi is Chief Technology Officer in the company.

Siddharth Shah: He is the Co-founder, Managing Director, and Chief Executive Officer of the Company. Mr. Shah is an IIM-Ahmedabad graduate. He is also the chief executive of API Holdings, the parent company that runs PharmEasy.

Hardik Dedhia is a Co-Founder of the Company. He is responsible for scaling up technological innovations in the Company and plays a key role in integrating technology teams and solutions across the company and its Subsidiaries. He holds a bachelor’s degree in electronics and telecommunication engineering from the University of Mumbai, Maharashtra. Hardik also holds a master’s degree in electrical and computer engineering from Carnegie Mellon University, Pennsylvania.

Dhaval Shah is the Co-Founder of the Company. He oversees the growth of products and services in PharmEasy Ltd. Mr. Shah plays a key role in various acquisitions and integration undertaken by the Company and the Company Subsidiaries. He holds a post-graduate diploma in management from Xavier School of Management, Jamshedpur, Jharkhand. He also holds an MBBS degree certificate from the Maharashtra University of Health Sciences, Nashik.

Financial snapshot:

PharmEasy recorded a significant jump in total revenue, that increased from INR 7 billion in FY 2020 to INR 24 billion in FY 2021. However, total expenses also increased by 174.9% to INR 29.8 billion for the year 2021 from INR 10.8 billion for FY 2020. As a percentage of revenue from operations, the total expenses decreased to 126% in FY 2021 from 147% in FY 2020. The company has been incurring huge losses over the last two years mentioned and the loss has increased over the years. PharmEasy has recorded a loss of INR 3791 million by the first half of FY 2022 (Jun 30, 2021).

Items (in INR Million Year ended March 3120202021
Total income7374.4823606.62
Total expenses10844.0429809.28
Loss after tax-3469.56-6202.66
Source: DRHP document filed by Pharmeasy

Industry Outlook:

The medicine/healthcare industry has been witnessing decent growth in India driven by the penetration of the new-age technologies and the internet. The internet users have grown at a CAGR of 18.17% between 2015 and 2019 and are further expected to rise at a CAGR of 8.78% in 2020-25. Besides, the e-commerce transactions also increased by 71.3% between April and September 2020. The market of the Indian e-pharmacies is expected to grow more than seven times between 2019 and 2023 to reach $2.7 billion\ INR 21,081 crore by 2023. This eventually gives a lot of opportunities for companies like PharmEasy.

Major Funding:

PharmEasy has raised a total of $1.6B in funding over 14 rounds. The company is funded by 43 investors including the most recent investors VestinWolf Capital Management and Trifecta Capital Advisors. PharmEasy, through its holding company – API Holdings -, came up with an IPO of INR 62.5 billion. The company is planning to use the net proceeds in repayment of outstanding borrowings and to fund organic and inorganic growth. However, the company could not launch the IPO due to a broader market slowdown. It will come with the revaluation of the IPO once again. The company is talking with private equity (PE) investors to raise debt of up to $250 Million in a bridge financing round till markets become more conducive to launching an IPO.

PharmEasy Growth Strategies and Outlook:

PharmEasy has been pursuing inorganic growth through acquisitions. The company acquired 49.17% of the equity share capital of Marg ERP Limited, B2B pharma and software, and solutions, at INR 2,548.00 million in FY 2022. The company acquired 72.22% equity share capital of Thyrocare Technologies Limited, a diagnostic company, at a valuation of INR 48,952.90 million in FY 2022.

PharmaEasy is also acquired Medlife International Private Limited and Akna Medical Private Limited at a valuation of INR 10,827.61 million and INR 7,007.08 million respectively. In the process of expansion, the company is entering into different nodes of the healthcare value chain such as hospital supplies business, digital healthcare, diagnostics business, etc.

To further strengthen its operation in the market, PharmEasy has associated with Unicommerce, an integrated SaaS platform for post-purchase experience management. PharmEasy is a new-age company. Though the company has not reached break-even yet, there is a huge potential to grow in the future in India. The demand for online Healthcare Services and Medical Requirements on a Single Platform has increased due to the higher reach of the internet. PharmEasy can capture the market to further increase its presence.

However, there is increasing competition in both online and offline pharmacies. Major players such as Amazon, Flipkart, Reliance, and TATA are entering this segment of the business. Flipkart launched Health+, Reliance took on Netmeds Amazon launched amazon pharmacy while TATA acquired 1MG. These big players will always disrupt the market first, which will uproot small players by lowering the price of the products. This will keep the loss of companies like PharmEasy on the higher side.

Suggested Readings: You may be interested in other Unicorn companies in India – Nykaa, mamaearth

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