PharmEasy to raise $200 million at much lower valuation

• PharmEasy, an Indian drug and medical services start-up is planning with its investors to raise $200 million .
• But at a valuation which would be 15% or even 25% lower when compared with last year's $5.1 billion.
• Some of the main investors of Pharmeasy are: Prosus, TPG, and Temasek and they are in talks to secure the new funds at a valuation as much as 15% below last year's.
• PharmEasy has also told its bankers to consider even a 25% reduction if needed to close the deal.
• This could cut PharmEasy's valuation for new funding round to #3.8 billion and also an IPO first targeted for 2022 has been delayed.
•  PharmEasy's planned fund raising, investors will participate and they will commit about $115 million in the new round
• PharmEasy's parent company owns other businesses including diagnostic test provider Thyrocare.
• API is the parent company.
• The company had seen its valuation jump in recent years in a boom moment for India's startups in general and a growth surge in its own sector, where rivals include Reliance's Netmeds, Tata's 1mg and Walmart's Flipkart.
• Last year, Indian startups raised a record $35 billion in private funding and many internet companies went public. PharmEasy, too, cashed in on the boom raised a total of $1.89 billion since 2015, with most of it coming in the last two years, data from Pitchbook shows.
• Among high-profile Indian startups, a 'down round' deal by PharmEasy's - when a firm sells shares at a lower valuation than before - will be the first in recent times.