Online Pharmacy PharmaEasy might soon receive funding of $200 Million funding from Naspers and TPG. Both Naspers and TPG might invest $100 million each. The present evaluation of the company is at $1.2 Billion. Till date, the company has raised $328 Million in seven funding rounds with the most recent funding of $220 million.
About Online Pharmacy PharmaEasy
Sheth and Dhaval Shah in 2015 co-founded Pharmaeasy. The startup helps in connecting patients to nearby pharmacies and help them get the service. Pharmaeasy has a huge reach with serving more than 19,000 pin codes and a quality chain service. The company has been on losses from quite some time but might soon start registering profits.
One of the co-founders Sheth said, “We are expecting to break-even in the next 24-30 months. It’s a switch for us, we can switch it on even today but its a conscious call we’ve taken to focus on growth rather than on profitability,”
Details of the funding
The recent $100 million investment in the company comes after its merger with its rival Medlife. The merger of the two provides a much bigger user base for the company. PharmaEasy and Medlife’s consolidation is an important move by the companies to compete with Reliance and Amazon. The company has many investors including Temasek, Bessemer Venture Partners, Nandan Nilekani, Orios Venture Partners and Eight Roads.
The company was last evaluated at $700 Million when it received a funding of $100 million from Temasek. According to reports, the total merger of the two companies will result in PharmaEasy of buying 100% equity of Medlife. After the deal, the promoters of Medlife will get a 19.95% from the total entity.
Competition to PharmaEasy
With COVID-19, the online pharmaceutical market has also gotten bigger. This is because medicines are a necessity. So, big companies like Amazon and Reliance have also entered the market segment. Reliance entered the market by acquiring a 60% stake worth $83 million in Netmeds. After the acquisition, even the Netmets company has acquired Tresara Health Pvt Ltd, which has resulted in better service and increase reach.
It is interesting to see with everything shifting online how will offline businesses sustain. What are your thoughts on the same? For a service or product available offline and online, what do you prefer? Do let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also, Read: Edtech startup Winuall raises $2 million in funding
