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After Acquiring Rival E-Pharmacy Chain Medlife, PharmEasy Now Plans $500 Million IPO At $3 Billion Valuation: Report
PharmEasy has acquired its rival Medlife (PharmEasy)
With an aim to raise around Rs 3,000-Rs 3,700 crore ($400-$500 million), online pharmacy chain PharmEasy has begun exploratory talks for a potential public market listing.
Multiple people aware of the development told The Economic Times that it will include both a primary as well as a secondary component, where some early backers will partially exit.
The initial public offering (IPO) is likely to value the company at around Rs 21,800 crore ($3 billion).
The development comes as the Covid-19 pandemic increased investor interest in the pharma sector and ecommerce space.
Investment firms such as TPG Growth, Prosus Ventures, Temasek, CDPQ, LGT Lightrock, Eight Roads and Think Investments hold about 80 per cent stake in API Holdings which is the parent entity of PharmEasy.
“Medlife has catered to the country’s healthcare needs covering 465+ cities. This merger is sure to complement PharmEasy’s ever growing efforts in India’s healthcare space,” PharmEasy said in a blogpost.
It is reported that Medlife’s shareholders received a 19.59 per cent stake worth about $240 million in API Holdings.
Medlife will discontinue operations and will merge with PharmEasy, starting 25 May, 2021.
Medlife customers just need to login to the PharmEasy app to start using their Medlife account via the same mobile number. All their digitized prescriptions and saved addresses dating back to a year will be available on the PharmEasy app.
