Ranjan Pai’s PharmEasy Investment Cleared By CCI
The Competition Commission of India (CCI) has given its approval for Ranjan Pai's investment in PharmEasy, an online pharmacy, along with an additional investment from 360 One (formerly IIFL).
This clearance comes as part of a funding round totaling Rs 3,500 crore through a rights issue. Ranjan Pai's involvement positions him as one of the leading investors in the Mumbai-based firm, with his stake now exceeding 12 per cent.
Initially intended to raise Rs 2,400 crore, PharmEasy's rights issue was later expanded to Rs 3,500 crore. The issue was priced at a 90 per cent discount to PharmEasy's peak valuation of USD 5.6 billion in 2021, aimed at clearing debts owed to Goldman Sachs.
Reports suggest that as a result of this investment, Ranjan Pai is set to secure three board seats in PharmEasy's parent company, API Holdings.
Over the past year, Pai has been actively increasing his investment activity through his family office. Aside from PharmEasy, he has made notable investments in companies such as Byju’s-owned Aakash Institute, Bluestone (an omnichannel jewelry maker) and FirstCry (a baby and mother care ecommerce firm).
PharmEasy, amidst intensifying competition from rivals like Tata Digital-owned 1mg, Flipkart Health Plus, Apollo and Reliance-owned Netmeds, has been focusing on reducing its monthly expenditure while aiming for sustainable growth. With Ranjan Pai's investment and anticipated strategic guidance, PharmEasy will look to strengthen its position in the sector and regain lost market share.
