During the year, the Mumbai-based company continued its belt-tightening initiatives as it more than halved its advertising and promotional expenses to Rs 235 crore, while staff costs declined 12% to Rs 1,283 crore, according to regulatory filings sourced from Tofler.
However, PharmEasy, which is facing a debt-repayment burden, saw its finance costs surge to Rs 665 crore in FY23, a more than 2.5 times increase from Rs 258 crore in FY22.
In August, ET reported that PharmEasy’s management had adjusted its expectations to the ‘new reality’ to grow in a sustainable manner, and since then the company has significantly slowed its cash burn.
Over the past year, PharmEasy reduced its overall expenditure as part of prioritising its profitability plans, leading to a shift in its leadership position in the e-pharmacy market to Tata Digital-backed 1mg in terms of gross merchandise value.
Almost 90% of the company’s revenue came from the sale of pharmaceutical and cosmetic goods. Other revenue streams include licensing of internet portals or mobile applications related to sales and distribution of pharmaceutical and cosmetic goods, diagnostic services, and teleconsulting, among others.
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PharmEasy has recently closed its Rs 3,500 crore rights issue, which gave it the much-needed room to clear pending debt and continue growing its business. Ranjan Pai, the chief of Bengaluru-based Manipal Group, emerged as the largest shareholder in API Holdings, with at least 15% stake after the rights issue.In the rights issue, PharmEasy was ascribed a valuation that is a 90% discount to the company’s peak valuation of $5.6 billion.
Some of PharmEasy’s lenders including Goldman Sachs, MacRitchie Investments and EvolutionX have converted a part of their debt into preference shares in the Temasek-backed firm. The Competition Commission of India (CCI) on Tuesday granted its approval for issuance of preference shares in API Holdings to these entities.
Key competitors in the online pharmacy sector for PharmEasy include Tata 1mg, Flipkart Health Plus, Reliance Netmeds, and Apollo. In addition to online pharmacy, the company also owns listed diagnostics firm Thyrocare.
ET reported on August 30 that PharmEasy had clocked an Ebitda of Rs 40 crore in the first four months of fiscal 2024.
During the year, the Mumbai-based company continued its belt-tightening initiatives as it more than halved its advertising and promotional expenses to Rs 235 crore, while staff costs declined 12% to Rs 1,283 crore, according to regulatory filings sourced from Tofler.
However, PharmEasy, which is facing a debt-repayment burden, saw its finance costs surge to Rs 665 crore in FY23, a more than 2.5 times increase from Rs 258 crore in FY22.
In August, ET reported that PharmEasy’s management had adjusted its expectations to the ‘new reality’ to grow in a sustainable manner, and since then the company has significantly slowed its cash burn.
Over the past year, PharmEasy reduced its overall expenditure as part of prioritising its profitability plans, leading to a shift in its leadership position in the e-pharmacy market to Tata Digital-backed 1mg in terms of gross merchandise value.
Almost 90% of the company’s revenue came from the sale of pharmaceutical and cosmetic goods. Other revenue streams include licensing of internet portals or mobile applications related to sales and distribution of pharmaceutical and cosmetic goods, diagnostic services, and teleconsulting, among others.
Discover the stories of your interest
PharmEasy has recently closed its Rs 3,500 crore rights issue, which gave it the much-needed room to clear pending debt and continue growing its business. Ranjan Pai, the chief of Bengaluru-based Manipal Group, emerged as the largest shareholder in API Holdings, with at least 15% stake after the rights issue.In the rights issue, PharmEasy was ascribed a valuation that is a 90% discount to the company’s peak valuation of $5.6 billion.
Some of PharmEasy’s lenders including Goldman Sachs, MacRitchie Investments and EvolutionX have converted a part of their debt into preference shares in the Temasek-backed firm. The Competition Commission of India (CCI) on Tuesday granted its approval for issuance of preference shares in API Holdings to these entities.
Key competitors in the online pharmacy sector for PharmEasy include Tata 1mg, Flipkart Health Plus, Reliance Netmeds, and Apollo. In addition to online pharmacy, the company also owns listed diagnostics firm Thyrocare.
ET reported on August 30 that PharmEasy had clocked an Ebitda of Rs 40 crore in the first four months of fiscal 2024.