PharmEasy to Raise ₹1,700 Crore via NCDs: Debt Restructuring, Leadership Overhaul, and IPO Outlook

PharmEasy, India’s largest digital healthcare and pharmacy platform under API Holdings, is set to raise ₹1,700 crore through redeemable Non-Convertible Debentures (NCDs). The NCDs will be backed by shares of Thyrocare Technologies Ltd, its diagnostic arm. This strategic fundraising move reflects PharmEasy’s continued efforts to manage its debt, improve liquidity, and prepare for a long-term recovery ahead of its upcoming IPO.

What Are NCDs and Why PharmEasy Is Opting for Them

Non-Convertible Debentures (NCDs) are financial instruments used by companies to raise funds without diluting their equity. In this case, PharmEasy’s NCD issue is supported by pledging Thyrocare shares as collateral, a move designed to reassure investors and lenders about repayment security.

The new ₹1,700 crore NCD issue will primarily help repay older borrowings and restructure existing debt obligations. Previously, PharmEasy had issued NCDs worth ₹1,820 crore, of which ₹1,545 crore remains outstanding.

After repayment, Docon Technologies Pvt. Ltd., a subsidiary holding 71.06% stake in Thyrocare, will repledge up to 61% of its shares to back this new fundraising. This structure ensures both debt continuity and investor confidence while preventing equity dilution.

PharmEasy’s Debt Burden and Financial Turnaround

PharmEasy’s aggressive expansion including its ₹4,546 crore acquisition of Thyrocare — added significant debt pressure over the years. Yet, the company has started showing progress in improving its bottom line.

In FY25, PharmEasy’s parent API Holdings reported a 40% reduction in net loss, dropping from ₹2,531 crore in FY24 to ₹1,516.8 crore in FY25. While revenue growth remained flat at ₹5,872 crore, the loss reduction indicates a tighter cost structure and controlled spending.

PharmEasy’s financial performance shows clear signs of improvement over the past year. The company’s operating revenue increased from ₹5,664 crore in FY24 to ₹5,872 crore in FY25, reflecting steady business momentum despite market challenges.

More importantly, PharmEasy’s net loss reduced significantly, dropping from ₹2,531 crore in FY24 to ₹1,516.8 crore in FY25, marking an impressive ~40% reduction year over year. This indicates stronger cost control and a focused approach toward profitability.

The planned NCD issuance is expected to provide short-term liquidity relief, enhance credit strength, and help refinance existing debt more efficiently, further supporting the company’s financial recovery and long-term stability.

Leadership Restructuring: Strengthening Corporate Governance

PharmEasy’s leadership transition marks a new phase in its turnaround strategy. In August 2025, Siddharth Shah stepped down as CEO and was succeeded by Rahul Guha, the Managing Director & CEO of Thyrocare Technologies. Shah now continues as Vice Chairman of the board.

Earlier in January 2025, co-founders Dharmil Sheth, Dhaval Shah, and Hardik Dedhia also exited their executive roles to explore new ventures.

This management reshuffle is expected to bring operational discipline and renewed focus on financial recovery. Guha’s leadership, combined with Thyrocare’s consistent profitability, could help PharmEasy rebuild investor trust and accelerate its path toward sustainability.

Thyrocare: The Pillar of PharmEasy’s Financial Stability

Thyrocare Technologies, a leader in the diagnostics space, continues to be PharmEasy’s most valuable asset. Its strong brand presence, steady profits, and nationwide reach make it a core component of PharmEasy’s collateral-backed fundraising strategy.

By pledging Thyrocare shares, API Holdings is leveraging its most stable business to unlock liquidity. However, this strategy carries inherent risk — over-leveraging could expose PharmEasy to market volatility if Thyrocare’s share value declines.

Despite these risks, Thyrocare’s robust performance gives PharmEasy the confidence to continue using it as a strategic asset for its debt restructuring and pre-IPO positioning.

Market Sentiment and Investor Outlook

The ₹1,700 crore NCD issue highlights a broader trend among Indian startups — using core assets to raise funds amid delayed IPOs and tighter funding markets.

While PharmEasy’s IPO plans remain on hold, this refinancing strategy indicates a deliberate effort to stabilize operations before a public offering. Investors are monitoring how the company manages revenue growth, cost control, and debt reduction — three key indicators that will determine when PharmEasy can relaunch its IPO ambitions.

Key Investor Takeaways

• Fundraising Purpose: Refinancing existing high-cost debt

• Collateral: Pledged Thyrocare shares (approx. 61%)

• Outstanding Debt: ₹1,545 crore from previous NCDs

• Leadership Change: Rahul Guha appointed as new CEO

• Financial Progress: 40% YoY loss reduction

• IPO Timeline: Expected in FY26 or later

PharmEasy’s Strategic Roadmap to Profitability

PharmEasy’s turnaround blueprint is anchored around three strategic priorities designed to strengthen its financial position and rebuild investor confidence:

1. Debt Optimization

By issuing structured debt instruments like NCDs, PharmEasy aims to reduce its interest burden, improve its cash flow, and refinance old debt at lower costs.

2. Operational Efficiency

The company continues to streamline its supply chain, strengthen partner integrations, and expand last-mile logistics for better service efficiency across its healthcare delivery network.

3. Strategic Partnerships

PharmEasy is leveraging Thyrocare’s diagnostic infrastructure to enhance its integrated healthcare ecosystem — a synergy that could improve margins and sustain growth ahead of its upcoming IPO.

Expected Benefits of NCD Issuance

PharmEasy’s debt repayment will help reduce high-interest obligations, allowing the company to free up resources that can be utilized for growth and operational needs.

The move also improves operational liquidity, ensuring smooth management of working capital and uninterrupted day-to-day business activities.

An improved credit profile further helps boost investor and lender confidence, strengthening PharmEasy’s financial credibility in the market.

Additionally, reduced interest costs will enhance financial flexibility, giving the company more room to optimize expenses and plan for long-term growth.

A strengthened cash flow ensures that PharmEasy can support its daily operations efficiently, maintaining business continuity without liquidity stress.

Lastly, this strategic restructuring enhances market perception, helping position the company favorably for its future IPO plans.

Collectively, these strategic benefits position PharmEasy for financial recovery and stability. If execution aligns with market expectations, the company could be on track to achieve profitability by FY26, setting the stage for a revived PharmEasy IPO.

PharmEasy’s IPO and Unlisted Share Market Performance

As of now, PharmEasy’s Pre-IPO shares are actively traded in the unlisted market, with investors closely tracking the PharmEasy unlisted share price and its movement post-NCD announcement.

The company’s performance in the unlisted share market often reflects investor sentiment regarding its IPO readiness and financial turnaround. While the PharmEasy share price in the private market has remained stable, future valuations may depend on the success of its debt restructuring and leadership reforms.

Conclusion: A Calculated Step Toward Recovery and IPO Revival

PharmEasy’s decision to raise ₹1,700 crore via NCDs is a strategic and necessary step in deleveraging its balance sheet and rebuilding market confidence. With leadership reforms, a tighter cost structure, and reliance on Thyrocare’s consistent performance, the company is moving toward a more stable and scalable business model.