Source: PharmEasy IPO DRHP
Source: PharmEasy IPO DRHP

 

PharmEasy:
PharmEasy is a consumer healthcare “super app”.
PharmEasy is a consumer healthcare “super app” that provides consumers with on-demand, home delivered access to a wide range of prescription, OTC pharmaceutical, other consumer healthcare products, comprehensive diagnostic test services, and teleconsultations thereby serving their healthcare needs.
25 Million+Total Users
8.8 million+Total Orders
2.4 million+Transacting Customers

Services offered by PharmEasy:

• Order Medicines
• Healthcare Products
• Diagnostic Tests

Source: PharmEasy IPO DRHP

API Holdings: Business & Brands:

• Aknamed: Tech-enabled Hospital Supplies Procurement
• Docon: EMR and Practice Management Software for Clinics & Doctors
• Pharmeasy: India’s Largest Online Pharmacy Marketplace
• Retailio: One of India’s Largest Pharma Platform connecting Pharmacies with Wholesalers
• Thyrocare: India’s Largest Diagnostics Test Provider by Volumes

API Holdings (PharmEasy) Financial Review: Strategic Focus on Efficiency and Margin Improvement in Fiscal 2024:

In response to capital constraints throughout the year, API Holdings (PharmEasy) has strategically concentrated on sustainable revenue growth by prioritizing quality and enhancing the consumer experience.

• Emphasis on Quality: API Holdings has reinforced its commitment to quality across all business segments. Notably, 25 out of 30 diagnostic labs of API Holdings are NABL accredited, provided to the top 2% of labs in India.
• Targeting High-Value Customers: Within the PharmEasy platform, efforts to acquire and retain high lifetime value customers have been successful, leading to a more than 20% increase in average order value. Additionally, Pharmeasy has intensified its focus on securing more profitable clients in both the hospital and retail sectors.
• Maximizing Capacity Utilization: API Holdings has improved the capacity utilization of its fulfillment and warehousing infrastructure by rationalizing and integrating its supply chain across the country.
• Enhancing Wallet Share: A concerted effort has been made by API Holdings to increase wallet share within the existing chemist and hospital business by enhancing customer experience and value propositions.
• Margin Enhancement: API Holdings has strategically optimized its product mix by emphasizing higher-margin products, particularly its own private label brands. There has also been a deliberate shift in the sales mix to prioritize comprehensive care opportunities, such as providing diagnostic services to current medicine customers.
• Cost Optimization: Significant employee expense optimization has occurred through refining supply chain, back-office, and technology staffing. Other costs have also been rationalized, including a strategic reduction in marketing expenses to focus on high-value, lifetime revenue customers, along with cuts in brand-related expenditures.
• Cash Conservation: API Holdings has focused on optimizing working capital through better inventory management and improved collection processes, especially within the chemist and hospital business.

These strategic actions highlight API Holdings’ commitment to financial prudence, operational efficiency, and sustained value creation. In our view, these measures lay a strong foundation for a resilient and agile financial future.

PharmEasy Unlisted Shares-Key Financial Graphs

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API Holdings – PharmEasy Rights Issue Details:

API Holdings – PharmEasy Rights Issue (2023):
 

• Type of Instrument: Series B CCPS
• API Holdings Rights Issue Price: INR 96.8 (including a premium of INR 95.8) such that the effective price per equity share issued pursuant to conversion of CCPS B is INR 4.84 (Rupees Four and Eighty Four Paise) per CCPS B (which translates into a conversion of 20 (twenty) Equity Shares for every 1
  (one) CCPS B)
• Every 17 (seventeen) equity shares held by an Eligible Equity Shareholder would entitle the shareholder to receive 20 (twenty) additional equity shares upon conversion of each CCPS B that it subscribes to in the Rights Issue at the issue price of INR 96.8 (Rupees ninety-six and eighty paise)
• In other words, every 17 (seventeen) equity shares held by an Eligible Equity Shareholder
  would entitle the shareholder to receive 20 (twenty) additional equity shares upon conversion of each CCPS B that it subscribes to in the Rights Issue at the issue price of INR 96.8

API Holdings Right Issue of CCPS (2022):

Key Parameters of PharmEasy Rights Issue indicated by the company:

• Type of Instrument: Compulsory Convertible Preference Shares (CCPS)
• Issue Price: Expected to be around ?100 per CCPS
• Estimated Timeline: The rights issue will be opened for a period of 30 days, starting from on or around the first week of September

Know more about API Holdings (PharmEasy) Rights Issue-2022 in detail by reading our blog post here.