Ranjan Pai’s MEMG leads $216 million funding in PharmEasy

Pharmacy startup PharmEasy has raised $216 million in a round led by Manipal Education and Medical Group (MEMG), Entrackr reported.

The company raised the funds at a valuation of $710 million, down 90% from the $5.6 billion that it was valued at in 2021, the report said, citing startup data platform TheKredible’s estimates.

MEMG family office invested ₹800 crore ($96 million) while other existing investors Prosus, Temasek, and 360 One Portfolios chipped in with ₹221 crore ($26.5 million), ₹183 crore ($22 million), and ₹200 crore ($22 million), respectively.

CDPQ Private Equity, WSSS Investments, Goldman Sachs, and Evolution Debt Capital cumulatively invested ₹400 crore ($48 million), the report added.

The Competition Commission of India (CCI) had in March cleared Manipal group chief Ranjan Pai’s investment in PharmEasy, along with an additional investment from 360 One (formerly IIFL), an antitrust regulatory filing showed.

Pai’s investment in PharmEasy was part of a ₹3,500-crore funding round through a rights issue. The Dharmil Sheth-led firm has been looking to raise the amount since last August to repay a debt from Goldman Sachs.

The startup, which had defaulted on its loan with Goldman Sachs last June, had seen its then valuation slashed by half by investor Janus Henderson.

Pai, with a stake of about 12% in PharmEasy, has emerged as one of the largest investors in the firm.

The startup had in August 2022 put off its initial public offer plan after filing draft papers with regulator Sebi in November 2021.