PharmEasy Parent API Holdings Becomes Unicorn
API Holdings secured $350 million from Prosus Ventures and TPG Growth
API Holdings on Wednesday announced that it has closed a combination of primary and secondary funding totaling $323 million, with an additional $27 million executed and closing imminently, from Prosus Ventures (formerly Naspers Ventures) and TPG Growth, the middle-market and growth equity platform of alternative asset firm TPG. Thus making the parent company of PharmEasy the latest unicorn of India.
Existing investors including Temasek, CDPQ, LGT Lightrock, Eight Roads and Think Investments also participated in the Series E round.
The new funds raised will allow the API Holdings team to deepen its relationships and penetration of existing geographical markets to reach over 100,000 pharmacies in the next 12 months. The new funding will also enable the company to further build out its platform to provide an increased range of services to healthcare practitioners and patients, setting up a better healthcare ecosystem for all Indians.
"I am particularly proud that we have been able to not only provide consumers with much faster and easier access to the healthcare products and services they need but that we have been able to do so by empowering and digitizing 60,000 small pharmacy stores that provide such an essential service to the Indian public," said Siddharth Shah, co-founder, and chief executive officer, API Holdings. "Finding a solution that means we can work together, and all parties can benefit from the improvements in the system continues to be a driving force for the entire team."
The company's platforms empower and connect over 60,000 brick and mortar pharmacies and 4,000 doctors in 16,000 zip codes across India. The platforms digitize and organize supply chains to provide easy access for pharmacies to affordable and authentic products in the shortest possible time. The platforms also provide SaaS solutions for pharmacies to use in procurement combined with delivery and logistics support, and credit solutions to buy over 200,000 medicines from over 3,000 pharmaceutical manufacturers.
"We are always looking for big areas of consumer spend that are ripe for disruption, and outpatient healthcare in India fits perfectly within that remit. API Holdings has built a comprehensive solution that meets the needs of key players in the healthcare ecosystem in India and their platforms have the potential to become so much more over time," stated Ashutosh Sharma, head of India investments, Prosus Ventures. "The team at API Holdings has shown great discipline building effective solutions across the pharmaceutical supply chain and we have great confidence in their ability to further scale their platforms for the benefit of all."
API Holdings also owns the largest consumer digital healthcare platform, which touches the lives of two million patients each month by providing access to genuine products at affordable prices in the convenience of their homes. It provides products to patients by enabling last-mile delivery, discoverability, and connectivity tools to 60,000+ pharmacies, often delivering products in under a few hours. It has served over 20 million patients since its inception, the company shared.
"API Holdings has built a unique, omnichannel, multi-layered, out-patient healthcare platform that holds a strong position across B2C and B2B segments," remarked Ankur Thadani, partner, TPG Growth. "We are excited to partner with this passionate, ambitious, and mission-driven management team to grow and enhance the platform and help it reach every Indian."
The pharmaceutical supply chain in India has approximately 1,000 pharmaceutical manufacturers, 55,000 distributors and sub-distributors, and 800,000 pharmacy stores. This complex system makes it challenging for pharmacies and end consumers to get access to authentic medicines, in a timely manner and at the right price.
"TPG has deeply experienced healthcare investors in India and around the world, while Prosus is arguably the world's best technology investor. We are delighted to welcome them to our team," added Dhaval Shah, co-founder, API Holdings.
API Holdings' digital healthcare platforms provide a much-needed digital solution in the highly fragmented and fast-growing healthcare market in India. API holdings want to empower the 800,000 physical medical stores in India with its state-of-the-art technology.