Healthtech Start-Up PharmEasy to Pledge Thyrocare Shares for ₹1,700 Cr Debt Raise

API Holdings, the parent company of digital health platform PharmEasy, has planned to raise ₹1,700 crore via redeemable non-convertible debentures (NCDs), according to an exchange filing on Tuesday. The company will use the shares of its publicly traded diagnostics arm, Thyrocare, as collateral.

The health tech platform plans to utilise the newly raised funds to repay its existing debt that was previously secured through NCDs. It had earlier issued NCDs with a total redemption value of ₹1,820 crore, of which ₹1,545.4 crore remains outstanding.

“API has now proposed to avail of debt by way of issuance of secured, unlisted, redeemable, nonconvertible debentures aggregating to a nominal value of up to INR 1700,00,00,000/- (Rupees One Thousand and Seven Hundred Crore only) (“Proposed Debentures”). The proceeds of the proposed Debentures shall be utilised to redeem the Existing Debentures in full,” the filing read.

The previous NCDs were backed by pledging the full 71.06% stake that Docon Technologies Pvt Ltd holds in Thyrocare. Docon, a promoter of Thryocare, is controlled by API Holdings.

With the earlier pledged shares set to be released Docon will now pledge up to 61% of its Thyrocare shares to support API Holdings’ new fundraising through the issuance of NCDs.

PharmEasy's Ongoing Challenges

This comes at a time when PharmEasy faces ongoing challenges in achieving profitability and navigates a series of leadership transitions in recent months. In August, its CEO Siddharth Shah has resigned from his executive responsibilities, transitioning to the role of vice‑chairman at API Holdings.

He was replace by Rahul Guha, the Managing Director and CEO of Thyrocare. Thyrocare is the publicly traded diagnostic chain that API acquired for ₹4,546 crore in June 2021. Shah, who has helmed API since 2020, will remain on the board to guide strategic initiatives and governance.

Shah was PharmEasy’s last remaining executive founder. In January, co-founders Dharmil Sheth, Dhaval Shah and Hardik Dedhia stepped back from day‑to‑day operations to launch All Home, an architecture and interior‑design venture backed by Bessemer Venture Partners. Despite their operational exit they have retained board‑level and observer roles within the API group.

Last year, PharmEasy raised $216 million in a round that was led by investors including Ranjan Pai’s Manipal Education and Medical Group (MEMG). The funding round rook place at a 90% valuation cut of $710 million. The start-up was last valued at ₹5.6 billion in 2021.

For the fiscal year 2023–24, PharmEasy halved its consolidated loss to ₹2,531 crore from ₹5,202 crore a year earlier, as total expenditure fell nearly 20 percent to ₹7,255 crore.

The platform is reviving its long‑deferred IPO plans, initially shelved in 2023, with the leadership reshuffle viewed as part of broader succession planning ahead of going public.