PharmEasy funding

API Holdings, the holding company of online pharmacy startup PharmEasy, has raised $350 million in a Series E round led by Prosus Ventures and TPG growth at a valuation of $1.5 billion. This makes Pharmeasy the seventh startup from India to enter the unicorn club this year. 

A statement from API Holdings stated the freshly raised capital was a combination of primary and secondary funding, which also witnessed the participation of existing investors including Temasek, CDPQ, LGT Lightrock, Eight Roads & Think Investments. 

The other six startups that entered the unicorn club this year are Infra.market, Five Star Finance, Digit Insurance, InnovAccer, Meesho, and CRED.

The second week of April saw the birth of three unicorns – Meesho, CRED, and now PharmEasy. 

API Holdings Co-founder and CEO Siddharth Shah stated, “I am particularly proud that we have been able to not only provide consumers with much faster and easier access to the healthcare products and services they need but that we have been able to do so by empowering and digitizing 60,000 small pharmacy stores that provide such an essential service to the Indian public.” 

According to API Holdings, as a digital healthcare platform, it connects more than 60,000 brick-and-mortar pharmacies and 4,000 doctors in 16,000 zip codes across India. It digitizes the whole supply chain to offer easy access for pharmacies to obtain the products.

PharmEasy also offers SaaS solutions for pharmacies to use in procurement coupled with delivery and logistics support, and credit solutions to buy over 200,000 medicines from more than 3,000 pharmaceutical manufacturers. 

API Holdings will use the freshly raised funds to strengthen its relationships and penetration of existing geographical markets to reach over 100,000 pharmacies in the next 12 months. It will also grow the range of services to be offered on the platform.

The pharmaceutical supply chain in India has nearly 1,000 pharmaceutical manufacturers, 55,000 distributors and sub-distributors, and 800,000 pharmacy stores. This makes it a deeply fragmented market and PharmEasy intends to digitize the segment.

 Ashutosh Sharma, Head of India Investments, Prosus Ventures, said, “The team at API Holdings has shown great discipline building effective solutions across the pharmaceutical supply chain and we have great confidence in their ability to further scale their platforms for the benefit of all.”

Speaking on the development, Shishir Gupta, Founder and CEO of StartupLanes said, “While the Covid-19 pandemic severely affected the revenue of several startups, some startups like PharmEasy not only managed to weather the storm but also joined the unicorn club. Congratulations to the entire team of PharmEasy for their latest achievement.

If you are an emerging startup and are looking for investors to raise funds, StartupLanes has its own angel network and investment banking services and is connected to angel investors and VCs in 17 countries that ensure that our member startups have easy access to external funds to scale up constantly. You can also become an angel investor with us. You can connect with us by visiting the ‘Contact Us‘ page.

For publishing an exclusive article about your company on our website, drop an email at taniya@startuplanes.com

Read more funding news here.