Home Beauty & Wellness PharmEasy follows up Medlife buy with Thyrocare acquisition for Rs 4,546 cr

PharmEasy follows up Medlife buy with Thyrocare acquisition for Rs 4,546 cr

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In the first-ever acquisition of a publicly listed company by an Indian unicorn, Docon Technologies Pvt. Ltd, a unit of online pharmacy PharmEasy’s parent API Holdings Ltd, is set to acquire a 66.1% stake in diagnostic chain Thyrocare Technologies for Rs 4,546 crore.

Docon Technologies will acquire the majority stake at ₹1,300 per share, as per media reports.

Thyrocare chairman A. Velumani will acquire a stake of less than 5% in API Holdings Ltd as part of a series of equity investments by existing and new investors of API.

Over the past year, there have been immense largely-pandemic-driven shifts in consumer behaviour with respect to purchase of medicines and diagnostic tests, leading to consolidation and mega mergers of late in the digital health space.

In May, PharmEasy also announced the acquisition of its smaller rival Medlife.

Medlife was founded in 2014 by Prashant Singh and Tushar Kumar. The company has a central laboratory based in Bengaluru and delivers daily to 29+ states.

“Medlife has catered to the country’s healthcare needs covering 465+ cities. This merger is sure to complement PharmEasy’s ever growing efforts in India’s healthcare space,” PharmEasy said in a blog post in May.

Founded by Dhaval Shah and Dharmil Sheth in 2015, PharmEasy works with round 80,000 pharmacies at present and intends to increase that to 1,20,000 shops throughout 100 cities by end-2021.

Back in April, the startup entered India’s unicorn club after API Holdings, its owner, raised USD323 million as part of a Series E round from Prosus Ventures (formerly Naspers Ventures) and TPG Growth. Existing investors Temasek, CDPQ, LGT Lightrock, Eight Roads and Think Investments also participated in the round, which consisted of both primary and secondary investments. PharmEasy was valued at USD1.5 billion for the funding round.