Pharmeasy, a leading healthtech platform, is facing a substantial downward revision in its valuation as investor Janus Henderson slashes it by 50% to $2.8 billion from its previous $5.6 billion valuation. This development comes in the midst of an ongoing funding winter that is affecting several unicorns in the industry.
- Valuation Revision:
- Janus Henderson, an investor in Pharmeasy, has decreased its valuation of the healthtech platform by 50% to $2.8 billion.
- This revision follows the recent valuation cut of 22% by US-based Neuberger Berman, which now values API Holdings (Pharmeasy) at $4.39 billion.
- Failed IPO Attempt and Down Round:
- Pharmeasy had made an attempt to go public in 2021 but eventually withdrew the offer due to worsening market sentiments.
- Reports suggest that the company is now seeking to raise a down round of $200 million, although there has been no official confirmation of a fundraise.
- Layoffs and Restructuring:
- In 2022, Pharmeasy carried out layoffs, affecting over 50 employees across various verticals, including product technology, quality analytics, support, and its subsidiary Docon Technologies, which focuses on electronic medical records.
- The company cited reasons such as restructuring, macroeconomic conditions, and the Russia-Ukraine war for the layoffs.
Pharmeasy’s situation is not unique, as other unicorns have also faced downward revisions in their valuations during the funding winter.
- Ola, a prominent ride-hailing company, witnessed a 35% reduction in valuation by investor Vanguard Group, from $7.3 billion to $4.8 billion.
- Swiggy, a major player in the food delivery sector, saw its valuation cut by Invesco to $5.5 billion in January 2023, down from $10.7 billion in January 2022. In March 2023, Invesco further slashed Swiggy’s valuation to $8 billion.
- BJYU’s, an edtech company, had its valuation pegged at $6 billion by Prosus in November 2022, down from its previous funding round valuation of $22 billion.
- Oyo, a hospitality firm, experienced a drastic reduction in valuation from $10 billion to $2.7 billion, as Japanese conglomerate SoftBank made the adjustment.
Pharmeasy’s valuation cut reflects the challenges faced by companies in the current funding environment. The economic downturn and market uncertainties have led investors to reevaluate their investments and adjust valuations accordingly.
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