PharmEasy is said to be under pressure from investors to sell itself.

Indian online pharmacy startup PharmEasy is seeking new funding of about $300 million, but at a significant valuation cut of 90%, according to anonymous sources cited by TechCrunch. If successful, this funding round would result in PharmEasy’s valuation dropping to half of the capital it has raised so far.

The startup aims to raise the funds to repay its lender, Goldman Sachs, which provided a loan of $285 million last year. This loan was used to pay off a previous debt incurred during the acquisition of a majority stake in Thyrocare for over $600 million. PharmEasy had filed for an $843 million IPO in November 2021 but postponed the plan later on.

The CEO of PharmEasy did not respond to requests for comment.

The Economic Times reported that healthcare group Manipal is interested in leading the $300 million funding round, while some of PharmEasy’s existing investors have been pressuring the company to sell its business. The startup’s parent company, API Holdings, was valued at $5.6 billion in its previous funding round.

PharmEasy plans to raise new financing through a rights issue, with shares priced at 5 Indian rupees, down from 50 rupees previously. If the funding round proceeds as proposed, PharmEasy’s valuation would drop to approximately $500 million to $600 million. The startup has faced difficulties finding investors at a $2 billion valuation in previous quarters.

Notably, PharmEasy would become the first major Indian unicorn to undergo a down round. The company’s investors include TPG, Prosus, Temasek, B Capital, Bessemer Venture Partners, Eight Roads Ventures, Steadview Capital, and JM Financial.

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