PharmEasy Plans to Raise ₹1,700 Crore via NCDs

A) What Happened So Far: PharmEasy's Debt Journey

1.2021 -Thyrocare Acquisition

PharmEasy borrowed 2,200 crore from Kotak Mahindra Bank to acquire Thyrocare, marking a major push into diagnostics.

This debt was intended to be repaid with proceeds from an initial public offering (IPO), but the company was unable to launch its public listing.

2. May 2022 - Goldman Sachs Refinance

The company refinanced its Kotak loan with a ₹2,700 crore Goldman Sachs loan. However, this came at high interest and strict covenants.

3. June 2023- Сovenant Breach

PharmEasy breached some financial covenants on the Goldman Sachs loan but continued servicing repayments, avoiding default.

4. April 2024 - Valuation Haircut

The company raised ~$216 million in equity but faced a dramatic~90% valuation cut, dropping from $5.6 billion to just ~$710 million.

5. September 2025 - Latest Debt Raise

PharmEasy issued 1,700 non-convertible debentures (NCDs) worth ₹10 lakh each to raise ₹1,700 crore.

• 360 One led with ₹1,231 crore

• Micro Labs added 210 crore

• MVS Ventures, Bennett Coleman, and Alkram Ventures contributed the rest

These funds will clear the Goldman Sachs loan, easing cash flow pressures.

B) Why This Matters

1. Cost of Borrowing and Liquidity Pressure

PharmEasy's repeated reliance on high-cost debt highlights its liquidity struggles. The new round may reduce immediate risks but obligations remain a concern.

2. Valuation Erosion

A ~90% drop in valuation signals investor caution. Growth projections and profitability timelines are under sharper scrutiny.

3. Leadership and Operational Shifts

interest With leadership churn and slower revenue growth, the company's operational execution is under the spotlight. FY25 revenue remained flat

at ~5664 crore, but losses narrowed by 105% (from ₹5211 crore in FY24 to ₹2533 crore in FY25), suggesting some progress in cost control.