News: According to media sources, PharmEasy is in talks with investors to raise US$200 million but at a valuation that could be 15-25% lower than last year's US$5.1 billion. This could cut PharmEasy's valuation for the new funding round to US$3.8 billion, and IPO first targeted for 2022 has been delayed.
Views: The lower valuation in e-Pharmacy space is on account of major cash burn and slim visibility of business turning profitable due to discounting practices. This event could have possible negative implications for Apollo pharmacy's quest to raise funds which has already been delayed due to adverse market conditions. Management was earlier seeking US$2.5 billion for Apollo Pharmacy and due to valuation gap, the possible fund raise is now delayed to end of FY23.
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