Online pharmacy start-up PharmEasy has kicked off its rights issue to raise up to Rs 750 crore through convertible notes. The issue will close by the middle of October, according to reports.
The company’s existing investors like Prosus Ventures and Temasek as well as its founders have subscribed to the issue for shares worth about Rs 200 crore, according to an Economic Times report.
Prosus Ventures and Temasek have subscribed to convertibles worth nearly Rs 100 crore and Rs 90 crore, respectively. Share subscription through convertible notes means PharmEasy’s valuation has not been priced in yet.
The company will be valued at its last valuation if it doesn’t raise new capital by March 31, 2023, the report said.
The new funding round for PharmEasy seems unsure currently as markets are not conducive from a valuation perspective. Late-stage deal activity has slowed down significantly and investors are being cautious about higher valuations, the report cited people close to the matter as saying.