PharmEasy likely to raise $250 million from General Atlantic, Abu Dhabi fund, CPPIB

Representative image

General Atlantic (GA), Canada Pension Plan Investment Board (CPPIB), and Abu Dhabi Investment Authority (ADIA) are mulling about $250 million investment in the parent of PharmEasy, The Economic Times reported.

General Atlantic is a growth equity firm, CPPIB a Canadian corporation which invests funds contributed to and held by the Canada Pension Plan and ADIA is a sovereign wealth fund owned by Abu Dhabi.

The valuation of India’s largest online pharmacy PharmEasy has dropped to almost half its October 2021 $5.4 billion pre-IPO tag at $2.5-2.75 billion.

The IPO was withdrawn almost a month ago.

Also Read | PharmEasy parent recalls draft IPO papers, weighs rights issue to raise funds

Existing investors TPG Growth, Prosus Ventures, Temasek and ADQ will invest about $70-80 million in the latest round through a convertible instrument, people aware of the development told ET.

Morgan Stanley and Bank of America are advisors to the fundraise.

Moneycontrol could not independently verify the report.

In May this year, General Atlantic planned to plough $2 billion into India and Southeast Asia over the next two years after falling valuations made the region's startups more attractive.