PharmEasy, founded in 2015 by four co-founders Dharmil Sheth, Dhaval Shah, Harsh Parekh, and Hardik Dedhia, is popular as a Consumer Healthcare ‘Super App’ that provides consumers with on-demand, home-delivered access to a wide range of prescription. The startup with a valuation of $5.6 billion, is at its peak Three of the Co-founders are about to quit the company.
Why did the founders make this bold decision, what is happening in the company, what are the company’s plans, will the billion-dollar pharma startup shut down? Let’s find out everything in this article.
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Co-founders: Dharmil Sheth, Dhaval Shah, and Hardik Dedhia quit the company.
PharmEasy, an online pharma company dominating the Indian market, is going through a little bit of turmoil, where cofounders have made a bold decision to step back from the company. According to a recent report from Moneycontrol, co-founders Dharmil Sheth, Dhaval Shah, and Hardik Dedhia will quit the company.
While the fourth co-founder, Siddharth Shah, will continue to lead the company. According to Entrackr’s report, these co-founders will remain part of the group, align their shareholdings for the long term, and continue as board members and observers, but the founders have decided to reduce their day-to-day executive responsibilities.
Why Co-Founders Took The Bold Decision.
Founded in 2024 by four co-founders, the company merged with Ascent Health, one of the biggest offline pharmaceutical distribution companies to form API Holdings in 2020, as reported by Startup Pedia.
After four years of the merger, companies most of the co-founders are dedicated to exiting the startup. As per Startup Pedia, when the Mumbai-based pharma startup raised $216 million in April 2024 from Ranjan Pai’s Manipal Education and Medical Group (MEMG) and other investors such as Temasek, Prosus, and 360 One, it saw its valuation decline sharply by around 90 percent.
The company valued at $5.6 billion during its peak in 2021, saw its valuation slashed to around $700 million in April 2024 when it raised money. According to the global asset farm Janus Henderson, an investor in the pharmacy startup, the valuation of PharmEasy is $458 million now, a haircut of 92 percent. It is less than half the capital the company has raised, the report further adds.
Since the company started the company has raised around $1 billion from renowned investors such as Think Investment, TPG, B Capital, Abu-Dhabi-based ADQ, and several others.
Cofounders and PharmEasy’s Future Plan.
Where PharmEasy was in turmoil regarding the bold decision led by the founders about the company’s leadership position, several reports cleared this out.
Entrackr reported that PhrmaEasy said, “We are delighted that the new team has achieved operational cash flow break-even and continues to handle all responsibilities effectively.”
“The three of us—Dhaval, Dharmil, and Hardik—are starting something new in the consumer space. Reputed VCs who backed us at PharmEasy are backing us again,” the co-founders said in a joint statement.
Siddharth Shah will lead the company as a chief executive officer, who was onboard from the incorporation of the company, and will try to rate again, considering the recent fall in the revenue of the company, and tumultuous journey to get back on track and restart the IPO.
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