API Holding Ltd, a parent company of PharmEasy, reported a fluctuating performance in the Pre-IPO market. Despite getting approval from the market regulator to launch an IPO, the company's current performance is not up to expectations. Not only does it create a problem for PharmEasy, but it also gives rise to insecurity for its retail investors. PharmEasy got the signal from SEBI for the IPO worth Rs 6250 crore at the company's valuation of $5.6 Billion. At this time, when PharmEasy IPO will soon launch, the current performance of the company creates a lot of confusion among investors. Here, we will discuss PharmEasy recent performance in detail and answer whether you should invest in its unlisted shares.
Overview Of PharmEasy (API Holding Ltd)
PharmEasy, registered as API Holding Ltd, is India's largest e-pharmacy company selling online medicines, diagnostics and telehealth services. It operates through different channels, including wholesalers, retailers, chemists, consumers, health consultants, and consumers. It was founded on 24 November 2014 and is headquartered in Mumbai.
According to PharmEasy officials, the upcoming IPO will be for fresh fundraising purposes rather than having a portion of shares for its existing investors. The company has gained massive popularity due to its app, which provides the consumer with on-demand access to a wide range of prescription-based medicines and diagnostic tests. PharmEasy has more than 25 million active users, delivered over 8 million orders, and has 2.5 million transacting customers. Apart from this, PharmEasy is also active in the Pre-IPO market, where retail investors can buy PharmEasy unlisted shares.
Funding History Of PharmEasy
Started in 2014, PharmEasy received angel funding in 2015; after that, its founders participated in a series of funding rounds. With the Series A round of funding, the company focused on expanding its business into five cities and started a home diagnostic service. In the proceeding rounds of funding, PharmEasy covered over 700 cities and launched its online healthcare products and service platform, which gained a massive response from customers.
In 2020 and 2021, PharmEasy merged with Ascent Health and other companies and formed a parent company called API Holding Ltd. After that, it acquired 66% of stakes in Thyrocare and became the first unlisted company to buy the shares of a listed company. Here are the funding details of PharmEasy over the years:
| Month and Year | Funding in Crores |
| March 2016 | 34 crores |
| March 2017 | 104 crores |
| April 2017 | 13 crores |
| February 2018 | 350 crores |
| September 2018 | 2800 crores |
| September 2018 | 1650 crores |
| November 2019 | 2400 crores |
| April 2021 | 13 crores |
| June 2021 | 150 crores |
Current Performance Of PharmEasy In the Pre-IPO Market
PharmEasy unlisted shares are traded in the Pre-IPO market and their prices largely depend on various factors. PharmEasy unlisted share price rose in the past years due to the company’s incredible performance. As the company got the final approval from the market regulator SEBI, it reflects positively in favour of PharmEasy stocks.
However, if we notice its current performance in the Pre-IPO market, PharmEasy stock price consistently goes down from Rs 70 in April 2022 to Rs 22 in April 2023. There are various reasons behind it: the higher market volatility and the loss company recorded in FY 2022. PharmEasy reported a net loss of Rs 3992 crores in this financial year.
In the filing with the Ministry of Corporate Affairs, the company showed that its loss widened from Rs 641 crore in FY2021 to Rs 3992 crore in FY 2022. As a result, PharmEasy current performance was not as expected, resulting in its shares dropping 50% in the Pre-IPO market.
Financial Summary Of PharmEasy
It is also crucial for you to understand the financial performance of PharmEasy to get a clear idea of its current performance. Investors who buy PharmEasy unlisted shares have doubts about the company's future in the Pre-IPO market. It is not the first time PharmEasy share price dropped by a considerable margin. PharmEasy plunged in the Pre-IPO market a few years ago and reported a 70% fall in its unlisted share price. Let's take a look at PharmEasy's financial performance in the last two financial years in the Pre-IPO market:
| PharmEasy Financial Performance | FY 2021 (Cr.) | FY 2022 (Cr.) |
| Net Revenue | 2360 | 5781 |
| EBITDA | -569 | -2302 |
| OPM | -24.39% | -39% |
| Finance Cost | 43 | 238 |
| Profit before tax | -620 | -3890 |
| Profit After Tax | -641 | -3991 |
| EPS | -2 | -7 |
The current performance of PharmEasy in the Pre-IPO market largely depends on its financial growth and decline. In the last two years, the company's expenses also increased from Rs 270 crore to Rs 1549 crore. Amid the news of PharmEasy's IPO, the existing performance is a significant factor in making an investment decision.
According to experts, the forecasted growth rate of PharmEasy would be 30-40% once its IPO launches. However, you can buy PharmEasy unlisted shares before the company gets listed on the stock market.
Why Should You Buy Unlisted Shares Of PharmEasy?
Investing in a company's unlisted shares is a great way to diversify the investment portfolio and reduce the risk. Since PharmEasy is planning to launch its IPO this year, you can enjoy the long-term benefits by investing early in its unlisted shares. Another reason to invest in PharmEasy unlisted shares is low liquidity and high growth opportunity. However, you must consider the past and current performance equally while investing in PharmEasy.
The best move is to talk with experts and take their opinion. You can reach out to our team for the right advice regarding unlisted shares. Stockify is a reliable platform to buy unlisted shares and has a wide range of blue-chip stocks for retail investors. Here, you can easily check the current price of unlisted shares and analyse their performance over the past few years. Explore the best-performing unlisted shares now!
