After a year of cost-cutting measures, online pharmacy startup Pharmeasy has reduced its losses by 51% to Rs 2,533.5 crore in FY24, primarily due to lower goodwill impairment charges and an overall decline in expenses.
In FY23, the Mumbai-based company’s losses stood at Rs 5,211.7 crore. However, revenue from operations shrank 14.8% to Rs 5,664 crore in FY24, and it struggled to gain back its market share due to competition from players such as Tata 1mg, Reliance-owned Netmeds, and Apollo 24×7, among others.
Also ReadBanking, insurance Bills may top economic agenda of winter session
In FY24, Pharmeasy recorded lower goodwill impairment charges of Rs 582 crore, compared to Rs 2,826 crore in FY23. Employee-related expenses decreased to Rs 699 crore from Rs 1,283 crore a year ago, bringing down overall expenses for FY24 to Rs 7,255 crore from 8,974 crore in the previous fiscal.
Also Read Kalyan Jewellers posts Q2 profit decline of 3.37% at Rs 130.33 crore due to one-time loss KFC-operator Devyani International posts Q2 profit decline of 99.9% YoY; on track to achieve FY25 guidance with 1921 total stores Aditya Birla Fashion and Retail posts widened Q2 loss of Rs 214.70 crore, revenue up 12.9% YoY Simplilearn trims Ebitda loss in FY24
In April this year, Pharmeasy raised $216 million in a funding round led by Ranjan Pai’s Manipal Education and Medical Group, along with other existing investors. The round saw its valuation plummet by 90% to $710 million, down from its peak of $5.6 billion in 2021.
In September, global asset management firm Janus Henderson also marked down its investment in the company by 92%. The firm had initially invested around $100 million during the company’s Series F funding round in 2021.
Also ReadBikaji Foods announces extension of investment timeline for its US subsidiary
Pharmeasy had also taken a hit last year when it failed to close a Rs 1,000-crore funding round. This had led to a breach in its loan covenant terms with Goldman Sachs, from which it had borrowed Rs 3,500 crore to pay off an earlier debt that the firm had to buy Thyrocare.
Pharmeasy bought Thyrocare Technologies for Rs 4,546 crore in 2021 and had hoped to pay off the debt taken to fund the purchase with its IPO proceeds but the listing was eventually shelved.
» Read More
