Pharmacy: Goldman Sachs could invest Rs 2,700 crore in Pharmage Parent

Goldman Sachs is in talks to invest about $ 350 million (Rs 2,700 crore) in API Holdings, a parent company of online pharmacy firm, in a structured loan transaction, sources said.

The loan will carry an interest rate of 14-15% and there will be a rate premium based on a pre-agreed equity upside, or a possible increase in the company’s valuation, people said. The money will be used primarily by the company to refinance a loan to raise funds for its acquisition of the diagnostic chain.

Last year.

Goldman Sachs declined to comment after receiving an email from API Holdings at press time on Tuesday.

The agency could raise another 200 200 million after closing the deal with the U.S. financial services agency, people said.

PharmaG, India’s largest online pharmacy, planned to raise Rs 6,250 crore through initial public offering of shares and use Rs 1,929 crore to repay the loan. Part of the repayment is due by August 2022. IPO plans were put on hold due to weak market conditions.

When a cluster of global funds invested $ 350 million in the pre-IPO round in October last year, the firm was valued at $ 5.6 billion. Singapore-based Amanasa Capital, hedge fund ApaH Capital, OrbiMed, Steadview Capital and Abu Dhabi Sovereign Wealth Fund were among the new investors in ADQ PharmaG.

The pharmacy became a unicorn in April 2021, when Prosus Ventures, TPG and others managed $ 350 million in Series-E rounds of funding valued at $ 1.5 billion. After it acquired a 66% stake in Thyrocare in June 2021, valuations have risen to 4 billion.

Prosus Ventures (formerly Naspers Ventures) is the largest shareholder in a startup with a 12% stake. Singapore-based Temasek has 11% stake in the company, followed by TPG Growth at 6.6% and Evermed Holdings at 6%. About 43 investors hold about 70% of the company.