A reduction in goodwill impairment charges to Rs 582 crore last year from Rs 2,826 crore in FY23 helped Mumbai-based API Holdings, which operates PharmEasy, cut its net loss sharply.
Sales of medicines (goods) for FY24 were Rs 5,008 crore, while revenue from lab tests and other services stood at Rs 652 crore.
PharmEasy published these numbers on its website.
Total expenses for the year were Rs 7,255 crore, reflecting a reduction from Rs 8,974 crore in the previous year, but remaining significant in comparison to revenue. Employee expenses decreased to Rs 699 crore from Rs 1,283 crore, indicating the cost optimisation undertaken by the firm.
Inventory levels were reduced to Rs 555 crore from Rs 688 crore, but trade receivables stood at Rs 706 crore, highlighting challenges in collections.
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This comes after a significant cap table recapitalisation at the online pharmacy at a 90% discount to its peak valuation of $5.6 billion in 2021. Manipal Group Chief Ranjan Pai and other investors pumped in Rs 3,500 crore through a rights issue to service its debt and restructure the business. Prosus Ventures, TPG, Temasek, Abu Dhabi’s ADQ, and Amansa Capital are among other investors who participated in the rights issue in November 2023.Since the restructuring, PharmEasy has been focusing on reducing its cash burn to become profitable while growing at a sustainable rate.
This has led to rivals like Tata-owned 1mg and Apollo 24X7 gaining market share. The overall rate of discounting has also come down across industry players, including Flipkart and Amazon India.
In FY24, the company’s exceptional costs included Rs 342 crore in early redemption charges for non-convertible debentures. Depreciation and amortization expenses amounted to Rs 216 crore, compared to Rs 243 crore in the prior year.
Besides Siddharth Shah, CEO of PharmEasy, Dhaval Shah, Dharmil Sheth, Harsh Parekh, and Hardik Dedhia are the other co-founders of the company.
This comes after a significant cap table recapitalisation at the online pharmacy at a 90% discount to its peak valuation of $5.6 billion in 2021. Manipal Group Chief Ranjan Pai and other investors pumped in Rs 3,500 crore through a rights issue to service its debt and restructure the business. Prosus Ventures, TPG, Temasek, Abu Dhabi’s ADQ, and Amansa Capital are among other investors who participated in the rights issue in November 2023.
Besides Siddharth Shah, the current CEO of PharmEasy, Dhaval Shah, Dharmil Sheth, Harsh Parekh, and Hardik Dedhia are the other co-founders of the company.
