PharmEasy to Relaunch IPO Amid Business Restructuring and Focus on Growth

PharmEasy, a leading online pharmacy, is preparing to relaunch its initial public offering (IPO) in 2025, two years after withdrawing its previous application. According to the report, the company plans to present its IPO strategy to the board in February, potentially involving a reverse merger with its publicly listed subsidiary, Thyrocare. PharmEasy aims to leverage its improved cash flow and restructured business model to regain investor confidence while prioritizing cash burn reduction.
The company has undergone significant leadership changes, with co-founders Dhaval Shah, Dharmil Sheth, and Hardik Dedhia stepping down from operational roles to focus on a new venture. Despite these shifts, CEO Siddharth Shah continues to lead API Holdings alongside Thyrocare President Rahul Guha. PharmEasy has also implemented cost-cutting measures, reducing employee expenses and halving net losses to Rs 2,533 crore in FY24, despite a 14.7% decline in revenue to Rs 5,664 crore.
PharmEasy’s recapitalization in 2023, led by Ranjan Pai of the Manipal Group and supported by prominent investors, raised Rs 3,500 crore for debt servicing and restructuring. The company now faces intensified competition from Tata-owned 1mg, Apollo 24×7, and emerging players like Flipkart Minutes, which recently introduced quick medicine delivery in Bengaluru. With a renewed focus on sustainable growth, PharmEasy is aligning itself with broader trends in India’s startup ecosystem, where firms like Oyo and Boat are also revisiting IPO plans.
Pic Courtesy: google/ images are subject to copyright