Unlisted/Private Market - Investment Opportunity
Thursday, Mar 28, 2024
About API Holdings (Pharmeasy)
API Holdings Private Limited (the 'Company') is a company limited by domiciled in India on March 31, 2019. The Company is engaged in diversified businesses primarily trading of pharmaceutical and cosmetic goods, licensing of internet portals or mobile applications related to sales and distribution of pharmaceutical and cosmetic goods, teleconsulting etc. The company was amalgamation between Thea Technologies Private Limited, Swifto Services Private Limited, 91Streets Media Technologies Private Limited, Ascent Health and Wellness Solutions Private Limited, Aahaan Commercials Private Limited and Lokprakash Vidhya Private Limited. The major shareholders in the company are Naspers Ventures B. V, Evermed Holdings Pte. Ltd, MacRitchie Investments Pte. Ltd, Prasid Uno Family Trust through its trustee Surbhi Singh and TPG Growth V SF Markets Pte. Ltd. Dharmil Sheth and Dr. Dhaval Shah are the co-founders of Pharmeasy. As of recent data Founder holds 1.8 % shareholding, Funds hold 65.3% shareholding, Enterprises hold 8.7%, Angels hold 17.7% and company has issued ESOP 2% of its shareholding.
The company has 37 subsidiaries as of March 2022. Major being Medlife Wellness Retail Private Limited, Thyrocare, Aryan Wellness Private Limited, Desai Pharma Distributors Private Limited and others. Erstwhile Medlife International Private Limited and Erstwhile Evriksh Healthcare Private Limited has merged with API Holdings. The company has 3 associates and Joint Ventures as of March 2022.
|
ISIN |
Face Value |
Total Shares |
P/E of the share |
|
INE0DJ201029 |
1.00 |
6,14,20,41,070 |
-2.74 |
|
Market Capitalization |
Industry |
Total revenue in 2022 |
Valuation |
|
Rs.1228 crores |
Healthcare |
5781 crores |
(Pharmeasy) |
|
|
|
|
USD 8.45 Billion |
API Holdings(Pharmeasy) Business Model
PharmEasy is an e-pharmacy offering convenient access to medicines and medical accessories throughout India. Customers are able to locate the closest pharmacies to them using PharmEasy's pin code tracker, as well as enjoying discounts of up to 20% if they order using the mobile app. Plus, it acts as a three-way chain between buyers, suppliers, and the distribution network, earning revenue from pharmaceutical brands that want to showcase their products. Its vast nationwide distribution network supports the delivery of products to a range of pin codes. However, it does not offer Schedule H drugs in line with Indian government regulations. The key benefit of PharmEasy is its ability to counter the hesitance of people to engage with e-pharmacies, due to concerns over product sourcing. The company generates GMV from sale of services which include (i) diagnostics services, and (ii) Retailio 3P GMV. The diagnostics services are provided through PharmEasy Labs and have been strengthened through the acquisition of Thyrocare in September 2021. Thyrocare offers over 700 diagnostics tests through 26 diagnostic labs, and the services are available to numerous consumers, hospitals, and diagnostics companies. Retailio is a technology that enables wholesalers and pharmacies to connect and sell medical and pharmaceutical products. Through a mobile app and web application, Retailio provides real time price discovery, inventory visibility, and a digitized, self-serve manner in which to enable ordering, confirmation and payments.
Industry Outlook and Future Prospects
In recent years, the internet and associated technologies have revolutionized both the medicine/healthcare industry and e-commerce. Internet user growth has grown at a compound annual growth rate of 18.17% between 2015 and 2019 and is predicted to increase by 8.78% between 2020 and 2025. This, combined with the 71.3% upsurge of e-commerce transactions between April and September 2020, signifies a positive outlook for the fintech sector. In 2020, the Indian E-Pharmacy market had around 50 e-pharmacies and accounted for 14% of the Asia Pacific Region's total e-Pharmacy revenues. It is predicted that this sector in India will experience robust growth, with a CAGR of 40-45%, significantly higher than the Global E-Pharmacy markets' predicted CAGR of 15-20%.
Summary of Financials
Amount in Crores except EPS and DPS which is in (Rs)
|
Parameters |
2021 |
2022 |
|
Total revenue |
2361 |
5781 |
|
Expenses |
2981 |
8492 |
|
PBT |
(620) |
(4007) |
|
Net Income |
(645) |
(3982) |
|
Diluted EPS |
(2.67) |
(7.28) |
|
Basic EPS |
(2.67) |
(7.28) |
Last Funding Round – Undisclosed, Conventional Debt Round, 07th Nov 2022 Amount raised in that round – USD 69.3 Million Total Valuation of the company – USD 8.45 Billion
Latest Investor – EvolutionX Debt Capital
(Source: Tracxn)
Investment Rationale
The company is focusing on geographical expansion in semi-urban & rural areas which includes deeper penetration into Tier-2 & Tier 3 cities. Pharmeasy serves to more than 2300 pin codes and around 15000 pin codes through 3PL Partners. As of March 2022, the company has GMV of Rs.135.48 billion, more than 1500 active pharmacies, more than 6600 wholesalers, more than 5100 prescribing doctors and others. The company is further focusing on creating brands like EVER HERB, ZUSTLE, TRUE CARE, LIVEASY and WELLPHARM. According to the latest updates the company has for first time recorded positive EBIDTA of Rs.14 crores and a total revenue of Rs.600 crores as of April, 2023.
Investor relation Link
https://www.apiholdings.in/investors
Disclaimer
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