CCI Clears Stake Acquisition in PharmEasy by 360 ONE & Ranjan Pai

According to the regulator's order, the transaction involves the purchase of Class B compulsorily convertible preference shares (CCPS B) from MEMG Family Office LLP.

The Competition Commission of India (CCI) has approved 360 ONE and Ranjan Pai’s Claypond Capital's proposals to jointly acquire an additional stake in API Holdings, the parent company of PharmEasy. 

According to the regulator's order, the transaction involves the purchase of Class B compulsorily convertible preference shares (CCPS B) from MEMG Family Office LLP.

While the specific deal size and amount remain undisclosed, this move reinforces continued investor interest despite PharmEasy’s financial challenges. “Under the proposed transaction, 360 ONE aims to acquire certain class B compulsorily convertible preference shares (CCPS B) of API Holdings from existing shareholder, MEMG Family Office LLP,” the CCI stated.

Ranjan Pai, through his investment arm Claypond Capital, is also acquiring CCPS B in API Holdings as part of this transaction. Following a $216 million funding round in 2024, Pai already holds an estimated 12% stake in the company.

Funding Crunch, Valuation Cuts, & IPO Uncertainty

PharmEasy, founded in 2015, has been navigating significant financial headwinds. In 2023, the company borrowed $300 million from Goldman Sachs but reportedly struggled with repayments. It acquired a majority stake in Thyrocare in 2021 through a $600 million debt deal.

The April 2024 capital infusion, which included investments from Ranjan Pai’s Manipal Education and Medical Group, Prosus, and Temasek, came at a sharply reduced valuation of around $700 million — a nearly 90% markdown from its peak valuation of $5.6 billion. Additionally, investor Janus Henderson slashed the company's valuation further to approximately $458 million.

The funding and valuation challenges have coincided with internal restructuring. Earlier this year, four of the five cofounders stepped down from their executive roles. While the company had earlier filed for an INR 6,250 Cr IPO, the plans were withdrawn amid market uncertainty. Reports suggest the IPO may be revived later this year.

Financial Performance 

PharmEasy’s financials reflect a mixed picture. Its consolidated net loss narrowed to INR 2,531.1 Cr in FY24 from INR 5,202.5 Cr in FY23. However, the operating revenue also declined by 14.75% to INR 5,664.2 Cr in FY24 from INR 6,643.9 Cr the previous year.

Founded as an online medicine delivery platform, PharmEasy merged with Ascent Health in 2020 to form API Holdings. While it continues to operate as a major digital pharmacy, the company’s immediate focus remains on financial stabilization and possibly preparing for a public offering.