API Holdings, which operates epharmacy services provider PharmEasy, has closed a growth funding round in a mix of primary and secondary investment at $323 million (Rs 2,383.19 crore as per current exchange rates).
The company, in a statement, said that it expects an additional $27 million (Rs 199.2 crore) to be added to the round, dubbed Series E, taking the total to $350 million.
Led by Prosus Ventures and TPG Growth, the round saw participation from returning investors Temasek, CDPQ, LGT Lightrock, Eight Roads Ventures and Think Investments.
The round values the company at $1.2 billion, propelling it into the unicorn club. This makes it the only epharmacy company, which recently acquired smaller rival Medlife, to enter the coveted club in 2020. Rival 1MG is reportedly in talks with Tata Group’s online venture Tata Digital to raise a new funding round.
TechCircle had previously reported that TPG Growth was slated to infuse $125 million, while nearly $50 million was expected to be raised via secondary transactions.
API Holdings said it will utilise the fresh capital to expand its network to 1 lakh pharmacies in the next 12 months, and build its platform to add new services for healthcare practitioners and patients.
“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,” Siddharth Shah, CEO of API Holdings, said in the statement.
While the government has approved the practice of telemedicine in the country, epharmacies continue to operate in an unregulated space as the draft epharmacy guidelines are yet to be approved.
API Holdings currently offers supply chain and B2B solutions to pharmacies, Electronic Medical Record and digital clinic platforms for doctors, apart from epharmacy and diagnostic test booking services.
“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,” Ashutosh Sharma, head of India investments at Prosus Ventures, said in the statement.