India-based API Holdings, which operates the giant healthcare startup PharmEasy, announced on 25 June 2021 that it will acquire a 66.1% stake in Thyrocare, which runs a diagnostic lab chain, for about US$ 613 million. This is the first-ever acquisition of a publicly listed firm by a unicorn startup in India. This acquisition will allow PharmEasy to serve patients across their entire journey in treatment.
Terms of the deal: The 100% subsidiary of API, Docon Technologies will be the acquirer. It shall make an open offer for an additional 26% stake for over US$ 241 million. Thyrocare also disclosed that API Holdings might raise another financing round, where it could sell about 4.9% stake to Dr. A. Velumani, a promoter of Thyrocare, for about US$ 202 million, thus indicating the complexity of the deal. This deal will increase the startup’s valuation of over US$ 4 billion.
Investors of PharmEasy: Prosus Ventures, Temasek, Eight Roads Ventures, TPG, B Capital Group, and Bessemer Venture Partners among others.
About PharmEasy
Founded in 2015 by Dharmil Sheth, Dhaval Shah and Mikhil Innani, PharmEasy is a health tech startup that offers services such as teleconsultation, medicine deliveries, and diagnostic test sample collections. It operates an online pharmacy that helps patients connect with local pharmacy stores and diagnostic centres to meet their extensive medical needs. It was founded as a subsidiary of Ascent Health.
PharmEasy is also the only healthcare unicorn startup in India. It operates a business-to-business pharma marketplace with over 6,000 consultation clinics with 90,000 partner retailers across the South Asian nation.
About Thyrocare
Thyrocare is India’s largest diagnostics solution provider. Founded in 1996, it is also India’s first fully automated diagnostic laboratory with a focus on providing quality reports at affordable costs to laboratories and hospitals. Thyrocare operates a network of over 3,330 collection centers in more than 2,000 towns in India.
Statements from the stakeholders
“We are delighted to be partnering with Thyrocare. We will provide world class customer experience in diagnostics, rivalling our pharmacy experience by leveraging technology, and building on top of the massive scale & truly pan-India presence of Thyrocare. It is our aim to deliver all outpatient healthcare products & services to every Indian within 24 hours.” – Dhaval Shah, co-founder of PharmEasy.
“I am excited about this relationship, unique of its kind in Indian healthcare industry. The unique reach and strength of Thyrocare in diagnostics blended with the young and dynamic team of PharmEasy will bring in better healthcare solutions for common man nationwide.” — Dr. Velumani, Chairman and MD of Thyrocare.
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