PharmEasy in early talks with Softbank to raise $100 Million.
PharmEasy has till now raised a total $75
Company triples its revenue in FY18 to Rs 116 crore from about Rs. 33 crore in FY17
Online medicine startup PharmEasy is in early talks with Japanese Conglomerate Softbank Group Corp. to raise approx $100 Million. PharmaEasy will value $400 Million post this funding round i.e. just double to what it was valued in a previous funding round.
In September 2018 Company closed its series C funding round by raising $50 Million. This round was led by the proprietary investment arm of Fidelity International Ltd, Eight Roads Ventures India and among the participants were Bessemer Venture. PharmEasy has till now raised $75 Million.
This investment proposal comes into action when online pharmacies are struggling with a court ban on their functioning. In December, the Delhi and Madras high courts banned online pharmacies because of lack of regulatory oversight. While the Madras high court has since stayed its order, the Delhi high court has upheld the ban till a final decision is taken.
According to Atul Pandey, a partner at law firm Khaitan and Co. There is still question about the functioning of e-pharmacies in India and there is currently no particular provision in the Drugs and Cosmetics Act, 1940, and the rules framed therein, which regulates e-pharmacies.
Softbank is keen to enter in online pharma retail sector, which it has identified as a key growth area. Softbank is aiming to be onboard in all biggest tech companies who are leaders of the market or are forwarding to become.
PharmEasy is grabbing online medicine market. It is growing 4 teams year by year and is expected to report revenue of Rs. 450 crore for the year ending 31 March.
According to the company’s recent corporate filings accessed from the Registrar of Companies (RoC) PharmEasy revenue is tripled in FY18 to Rs 116 crore from about Rs. 33 crore in FY17, but losses enhanced to Rs. 97 crore from Rs. 48 crore.
PharmEasy is founded in 2015 by Sheth and Dhaval Shah. It sells healthcare products, medicines and links patients to local pharmacies and diagnostic centers through an integrated online platform. It also sells diagnostic kits for thyroid care and liver function tests, diabetes, and several other problems.
SoftBank is expanding its business aggressively. Its profit in the October-December quarter was 438.3 billion yen ($3.99 billion) with respect to 274 Billion yen the previous year and SoftBank’s Saudi backed Vision Fund invested $45.5 billion in 49 firms including ride-hailing firms Uber Technologies, WeWork Cos, semiconductor maker Nvidia and chip designer ARM.
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