Manipal’s Ranjan Pai to buy 18% in PharmEasy

Bengaluru: Billionaire Ranjan Pai’s family office is pumping Rs 1,000 crore for about an 18% stake in API Holdings, the parent entity of online pharmacy PharmEasy. The latter’s existing investors, including private equity firm TPG and Singapore’s sovereign wealth fund Temasek Holdings, are planning to invest an additional Rs 1,000 crore, sources told TOI. If the deal goes through, Pai, who is the chairman of Manipal Education & Medical Group (MEMG), will be the single largest shareholder and will have a board seat. Pai’s latest bet in the healthcare sector, as well as his recent investment in Kites Senior Care, indicates his appetite to look at newer models shaping the Indian healthcare landscape. Pai, Temasek and TPG are also the major shareholders in Manipal Health Enterprises, which runs India’s second biggest hospital chain, Manipal Hospitals. Pai was an investor in PharmEasy’s seed and series-A funding rounds, and had exited the online pharmacy some time ago. When contacted by TOI, Pai said he had no comments on the matter. PharmEasy is said to be planning to raise Rs 2,500 crore, money that it needs to pare its debt from Goldman Sachs. An email to PharmEasy did not elicit a response till the time of going to press.In May, US investor Janus Henderson cut PharmEasy’s valuation by half to $2.8 billion, from over $5 billion in its last round of funding. Last year, PharmEasy withdrew its filing for an IPO citing market conditions. In 2021, Prosus Ventures and TPG led a $350-million round in API Holdings. PharmEasy has over 6,000 employees. Pai has been a prominent investor in the Indian startup ecosystem. His portfolio includes Byju’s, InCred, Goat Brand Labs, e-commerce platform Meolaa, fintech startup GoalTeller and HerKey (formerly JobsforHer).
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