PharmEasy's Parent API Holdings Joins Unicorn Club Post $350 Million Funding Round

Online pharmacy PharmEasy’s parent company API Holdings has raised $350 million (around Rs 2,590 crore) in a round led by Prosus Ventures and TPG Growth. The company told PTI that it has closed a combination of primary and secondary funding totaling $323 million, with an additional $27 million executed and closing imminently, from Prosus Ventures and TPG Growth. Existing investors, including Temasek, CDPQ, LGT Lightrock, Eight Roads & Think Investments, also participated in the Series E round.

“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,” said Siddharth Shah, API Holdings Co-Founder & CEO.

While the valuation after the round was not disclosed by the company, experts believe it to be close to $1.5 billion, making it the latest unicorn from India. According to a company statement, the funds will be used for the digitization of pharmacies and delivery of healthcare in India, API Holdings.

The company will also use the funds to deepen its relationships and penetration of existing markets to reach over 1,00,000 pharmacies in the next 12 months, the statement said. It further added that the fresh capital will enable API Holdings to further build out its platform to provide an increased range of services to healthcare practitioners and patients.

"We are always looking for big areas of consumer spend that are ripe for disruption, and outpatient healthcare in India fits perfectly within that remit. API Holdings has built a comprehensive solution that meets the needs of key players in the healthcare ecosystem in India and their platforms have the potential to become so much more over time," said, Ashutosh Sharma, Head of India Investments, Prosus Ventures.

API Holdings is the seventh startup to become a unicorn in 2021 and the third one within the week.