Pharmeasy layoffs

According to media reports, Homegrown healthtech startup PharmEasy has slacked off more employees from the company in the middle of a funding crunch. The majority of affected employees worked in areas concerning product technology, quality analytics, and support verticals. Other than that, employees from the overarching technology and design teams were also impacted. A variety of factors can belated for the layoffs, including restructuring, macroeconomic headwinds, and the ongoing Russia-Ukraine conflict, according to the report. Thee parent company of PharmEasy, API Holdings, laid off around 40 full-time employees at its electronic medical record subsidiary Docon Technologies, earlier in June this year. Most of the lay offs were from the sales department, such as business development managers, cluster heads, and area managers. With the slack offs, PharmEasy joins a growing string of startups that have laid off employees as investment decreases and mindless cash burn comes back to haunt them.

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An emailed query sent to PharmEasy went unanswered till the time of publishing. The consumer Internet investment ecosystem in India has been witnessing a series of valuation markdowns by US institutional investors. These developments follow other crucial moves by startups and investors such as layoffs, holding back on investments and broader cost-cutting in a sluggish macroeconomic environment. US institutional investors and the funds managed by them review the value of their holdings at regular intervals. Venture investors have recently told ET that while the exercise of marking down valuation in books was theoretical, it could be a signal that startups would raise funds at lower valuations going forward. PharmEasy, Cash burn is typically used for privately held unprofitable startups and indicates the rate at which it uses capital to run day-to-day operations. PharmEasy was on a Rs 5,200 crore revenue as of December 2022, with a cash burn of Rs 30 crore per month. In January, the epharmacy’s cash burn narrowed to Rs 15 crore, indicating its intent to further improve its economics. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp.

As per the sources mentioned earlier, some employees at PharmEasy were reportedly laid off due to performance-related concerns, in addition to cost-cutting measures and insufficient funding. The company allegedly communicated to many affected staff members that the layoffs were due to financial constraints. However, these reports suggest that certain employees were let go due to underperformance. PharmEasy had announced in August of last year that it would raise funds through a rights issue involving its existing shareholders after withdrawing the draft red herring prospectus (DRHP) for its initial public offering (IPO). The IPO was expected to collect around Rs. 3,000 crore to Rs. 3,700 crore, but the company cited “market conditions and strategic considerations” as the reasons for its withdrawal. In November of last year, PharmEasy secured an undisclosed amount of debt financing from EvolutionX Debt Capital, a platform that provides financing to growing businesses. Since its founding in 2014, the drug and medical services platform has raised more than $1.12 billion in funding through 16 investment rounds, with support from investors such as Temasek, B Capital, Prosus, Steadview Capital, and Nandan Nilekani’s Fundamentum Partnership. The company was valued at over $5 billion in its most recent funding round in October 2021. PharmEasy, an Indian medical services and drug platform, reportedly laid off staff in December due to challenges in raising funds amidst a slowdown. A...

Epharmacy startup, PharmEasyannounced another round of layoffs, months after its first. Actual number of employees impacted by the decision are not verified yet. The majority of those affected worked in product technology, quality analytics, and support. Employees from the broader technology and design teams were also affected. Employees who were laid off were given a variety of reasons, including restructuring, macroeconomic headwinds, and the ongoing Russia-Ukraine war. PharmEasy is beset by a slew of problems, including mounting losses, a funding crunch, and postponed IPO plans. Hi, I'm Sreejit Kumar, a journalist with a Master's degree in Journalism. Through my education and professional experience, I have developed a keen eye for detail and a passion for uncovering the truth. As an author for this news website, I am committed to delivering accurate, timely, and engaging stories that inform and entertain our readers. Disclaimer At It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Online pharmacy PharmEasy recorded a positive ebitda of around Rs 14 crore, which means it is operationally profitable, even as one of its investors marked its valuation down to $2.8 billion. This and more in today’s ETtech Morning Dispatch. Also in the letter: ■ Inside the changing VC deal terms ■ IT clients push for generative AI-based solutions ■ SCO members vote to adopt India’s proposal on DPI Hi, this is Pranav Mukul in New Delhi. Today, my colleague Digbijay and I have two important updates on Mumbai-based online pharmacy PharmEasy. Driving the news: For the first time in April, PharmEasy Tell me more: Global asset management company Janus Henderson slashed the value of its holding in PharmEasy by 50% as of December 2022, reducing it to $2.8 billion down from 5.6 billion. ETtech reported last week that Neuberger Berman Latest numbers: PharmEasy recorded a positive Ebitda in April of around Rs 14 crore for the first time since inception with net revenue of Rs 600 crore. The ebitda stood at negative Rs 80 crore in April 2022. The company had told the board it was aiming to hit this milestone by September this year. Jargon Buster: Ebitda stands for earnings before interest, taxes, depreciation and amortisation. It is a measure of a company’s profitability. Tell me more: The firm’s average order value in April also increased to a range of Rs 1,300-1,900 in the medicine delivery business, which, sources said, helped the company turn its finances around. Siddharth Shah, f...