PharmEasy Can Raise Debt of INR 1,700 Cr

This Sunday, here's an interesting thought for you: Startups that buy up larger companies or legacy firms typically don't end up successful. Consider the billion-dollar agreement between BYJU'S and coaching behemoth Aakash, which has largely fallen through due to BYJU's issues. Or Ola, a ride-hailing firm that spent around $200 million to buy FoodPanda and go into the food delivery business before realizing it was more than just buying a business.In June 2021, PharmEasy went one step further and became the first startup to purchase Thyrocare, a publicly traded firm, for INR 4,440 Cr (about $600 million at the time), a 9X revenue multiple.Although the company's FY25 loss of INR 1,517 Cr was 40% lower than FY24, its top line remained nearly unchanged, so this was not a significant improvement. Nevertheless, that is better than the 15% drop in revenue in FY24. Before delving further into the problems facing B2B and B2C pharmaceutical companies, let's take a look at this week's top stories from our newsroom:PhysicsWallah's Litmus Test for IPOs: The edtech giant submitted its revised DRHP earlier this week in an attempt to raise INR 3,820 Cr through an IPO. The ranking might be a welcome change in the deteriorating situation of Indian edtech. However, is the lauded listing from PW more smoke than fire? The Goldmine of Q-Commerce Ads: The world of rapid commerce has become a battlefield for marketers. What began as a convenience play has developed into the newest advertising goldmine in India, posing a threat to Meta and Google. The Premium Q-Comm Sizzle from FirstClub:

The firm offers "high-quality" daily necessities and lifestyle items at reasonable costs, in contrast to other fast commerce companies. Can it compete with industry titans like Zepto, Blinkit, and Instamart with its premium-focused model?Building a comprehensive health and wellness platform that could source, prescribe, and sell medications through both online and offline touchpoints was the goal of Siidharth Shah, his close friends Dharmil Sheth, Dhaval Shah, Harsh Parekh, and Hardik Dedhia. Before losing steam, the startup managed to get halfway there. In order to expand verticals such pharmaceutical supply chain, health consultations, diagnostics, and testing, it purchased Aknamed in 2018, Thyrocare, and B2C pharmacy Medlife in 2021. During the pandemic, when the fiscal policy of zero interest rates was in effect, the corporation also took on a lot of debt. Although it was simple to raise these cash, PharmEasy found that repaying them grew increasingly expensive.Except for Thyrocare, cashburn was the cause of any growth at this point. Five years after that well-known transaction, PharmEasy, which was once valued at $5 billion, is having trouble turning a profit. The $300 million (INR 2,220 cr) loan from Goldman Sachs, which ultimately resulted in an annual interest rate of 17–18%, has been the primary cause of its difficulties.