PharmEasy Parent API Holdings Raises ₹1,700cr via NCDs, Pledges 61% of Thyrocare as Collateral

API Holdings, the parent of online pharmacy PharmEasy, has raised ₹1,700 crore (about $193 million) through redeemable non-convertible debentures (NCDs) to repay existing debt, Inc42 reported.

To secure the new issuance, Docon Technologies, a subsidiary of API Holdings and the promoter of listed diagnostics firm Thyrocare, has reportedly pledged 3.23 crore Thyrocare shares to Catalyst Trusteeship Limited as collateral, representing roughly 60.99% of Thyrocare’s equity.

The fresh NCDs were used to clear an earlier NCD liability that carried a redemption value of ₹1,820 crore, of which ₹1,545.4 crore remained outstanding before the transaction. API Holdings’ latest move effectively retires that remaining obligation, the filings show, with Docon re-pledging up to about 61% of Thyrocare after the release of an earlier pledge that covered a 71.06% stake.

API Holdings Troubles

API Holdings and its operating businesses have been under scrutiny amid repeated leadership changes and an extended push to restore profitability.

In August, PharmEasy founder Siddharth Shah stepped down as CEO and was succeeded by Rahul Guha, the managing director and CEO of Thyrocare; Shah remains on the API board as director and vice-chairman. Several other co-founders left executive roles earlier in 2025 to pursue other ventures.

The fundraising comes against a mixed financial backdrop. API Holdings narrowed its consolidated loss in FY25 to ₹1,516.8 crore from ₹2,531 crore a year earlier, a decline of roughly 40%, while operating revenue was largely steady at ₹5,872.1 crore versus ₹5,664.2 crore in FY24. Company filings show the capital raise was structured to replace older NCDs and shore up the balance sheet as new management focuses on operational turnaround.

Thyrocare, acquired by API Holdings in a ₹4,546 crore deal in 2021, has shown healthier performance: consolidated net profit rose about 30.6% to ₹90.8 crore in FY25 from ₹69.5 crore the year before, while operating revenue increased to ₹687.4 crore from ₹571.9 crore. The company has also seen executive reshuffles recently, its then-CFO Alok Kumar Jagnani was promoted to group CFO at API Holdings in Q1 FY26, and Vikram Gupta was appointed Thyrocare’s CFO.

Analysts POV

Market observers say pledging shares of a listed asset such as Thyrocare is a common route for holding companies to access secured borrowing, but it concentrates risk: a sustained fall in Thyrocare’s share price could tighten covenants or trigger additional collateral requirements.

For API Holdings, the transaction buys time to execute on profitability initiatives while keeping control of key assets within the group.

With ownership and control now effectively shared among large investors, including Ranjan Pai’s family office as well as global backers such as Prosus, TPG and Temasek, the pressure is squarely on the new leadership to stabilise operations and convert revenue momentum into sustained profits.

The NCD issuance is aimed at simplifying the company’s debt profile and giving management room to focus on the turnaround plan.