API Holdings, the India-based, corporate-backed owner of digital drugstore operator PharmEasy, filed for a Rs 62.50bn ($842m) initial public offering today on the Securities and Exchange Board of India.
The offering size may decrease if API Holdings carries out a pre-IPO private placement of up to $168m, it said in the prospectus. The listing does not include an offer for sale, suggesting none of the shareholders will divest their stakes in the company.
Founded in 2015, PharmEasy provides digital healthcare software tools and curated information focused on wellness, remote consultations and treatments.
The company plans to use the net proceeds from the offering to settle debts, conduct strategic acquisitions and invest in organic growth capabilities including marketing, logistics and technology.
PharmEasy had secured $350m in pre-IPO funding last month at a $5.6bn valuation. Amansa Capital, ApaH Capital, Janus Henderson, OrbiMed, Steadview Capital, ADQ, Neuberger Berman and Sanne Group all took part in the $204m primary portion of the round and bought secondary shares from early backers.
PharmEasy’s founders invested roughly $40m to join about 20 senior team members in the secondary deal, which was sized between $130m and $140m. The latter group bought a total of $5m while financial services group India Infoline also participated, purchasing an undisclosed amount.
The company had secured $350m at a $1.5bn valuation in an April 2021 primary and secondary round to take its total funding to more than $650m. Prosus Ventures, a vehicle for internet group Prosus, co-led the round together with TPG Growth.
Investment and financial services group Fidelity’s Eight Roads Ventures subsidiary also contributed to the April round, which also featured Temasek, Caisse de dépôt et placement du Québec (CDPQ), LGT Lightrock and Think Investments.
Temasek had led a $220m round in late 2019 for API Holdings, helping value the company at $700m, participating alongside financial services firm KB Financial Group, Eight Roads, CDPQ and LGT Lightrock as well as Nandan Nilekani and returning investors Bessemer Venture Partners, Fundamentum Partnership and Orios Venture Partners.
Eight Roads’ sister unit, F-Prime Capital, is among the early investors in the company, as are education group Manipal Education and Medical Group, insurer Medi Assist Healthcare Services, healthcare logistics service Ascent Health and Wellness Solutions, JM Financial, Aarin Capital, Astarc and Trifecta Capital.
Morgan Stanley India Company, BoFA Securities India, Kotak Mahindra Capital Company, JM Financial and Citigroup Global Markets India are lead managers for the offering.
