PharmEasy, operating under API Holdings, experienced a notable upswing in operating revenue, exceeding INR 6,000 Cr in the fiscal year concluding on March 31, 2023. The Mumbai-based unicorn disclosed an operating revenue of INR 6,643.9 Cr, denoting a 16% surge from the previous fiscal year.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy specializes in online sales of medicines and diagnostic tests through its subsidiaries.

In FY23, the startup's revenue from the sales of pharmaceutical and cosmetic products reached INR 5,925.3 Cr, while diagnostic and other services contributed INR 701.2 Cr. This signifies substantial growth compared to INR 5,229.9 Cr and INR 417.8 Cr, respectively, in FY22.

The total revenue, encompassing other income, reached INR 6,699.7 Cr, demonstrating a 15% increase from INR 5,781 Cr in the preceding fiscal year. However, the net loss surged by over 31% to INR 5,211.7 Cr in FY23, attributed to an impairment loss of INR 2,921.9 Cr during the year. Excluding this loss, PharmEasy's net loss diminished by 16% to INR 2,289.8 Cr in FY23.

Scrutinizing expenditures, the startup managed a modest 6% increase in total spending, reaching INR 8,974 Cr from INR 8,491.5 Cr in FY22. Notably, the procurement cost constituted approximately 63% of total expenses, escalating by 12% to INR 5,730.8 Cr in FY23. Employee benefit expenses saw a 12% reduction to INR 1,283.3 Cr, reflecting cost-cutting measures, including layoffs in 2022 and 2023.

PharmEasy also reduced marketing costs by over 50%, down to INR 235 Cr in FY23 from INR 494 Cr in FY22. Confronting a cash crunch in the previous year, the company successfully raised INR 3,500 Cr through a rights issue, intending to settle a portion of its debt.

Despite deferring its IPO plans in 2022, PharmEasy has effectively navigated financial challenges and secured substantial capital, totaling over $1 Bn to date. Competing with Tata 1mg, MediBuddy, and Practo in the online pharmacy sector, PharmEasy appointed Yatharth Bhargova as the new Group CFO of API Holdings Private Limited amidst strategic financial maneuvers.