API Holdings, the company that owns health-tech startup Pharmeasy, has filed its draft red herring prospectus (DRHP) with India’s markets regulator to raise Rs 6,250 crore in an initial public offering (IPO).
The issue will only be a primary share sale of shares and the entire proceeds will go to the company and there will not be any offer for sale by existing investors. Amongst a slew of tech IPO’s in India such as Zomato, Nykaa, PayTM, Policy Bazaar and Delhivery, Pharmeasy is the only one with no secondary sale of shares by any existing shareholder.
Additionally, the company is considering a private placement aggregating up to Rs 1,250 crore. If it goes through, the size of the IPO will be reduced. API Holdings’ pre-IPO round that closed in October 2021 reportedly valued the company at $5.4 billion.
According to the company’s DRHP, its revenue increased 250 per cent from Rs 668 crore in FY20 to Rs 2,335 crore in FY21 amid the pandemic. Its registered losses of Rs 335 crore and Rs 645 crore, in FY20 and FY21, respectively. For the quarter ended June, its revenue was Rs 1,197 crore and loss was Rs 306 crore.
API Holdings acquired 66.1 per cent in Thyrocare Technologies for Rs 4,546 crore (at Rs 1,300 per share) through Docon Technologies. a subsidiary of API. In September 2021, it acquired a majority stake in healthcare supplies startup Akna Medical Pvt Ltd (Aknamed) for an undisclosed sum.
According to a RedSeer Report, API Holdings Ltd is India’s largest digital healthcare platform based on gross merchant value (GMV) of products and services sold for the year ended March 31, 2021. It is an integrated, end-to-end business that aims to provide solutions for healthcare needs of consumers providing digital tools and information on illness and wellness, offering teleconsultation, offering diagnostics and radiology tests, and delivering treatment protocols including products and devices.
As of 30 June 2021, API Holdings provided access to more than 50,000 stock keeping units (SKUs) across 18,587 pin codes in 2,601 cities and towns across the country. Its revenues and businesses are spread across the length and breadth of India, urban and rural and provides its services to 3,261 wholesalers, 87,194 pharmacies, and 4,617 prescribing doctors and clinics and 926 hospitals, with 25 million registered users.
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