B Capital picks a minority stake of USD 20 million in PharmEasy

B Capital, a venture capital firm co-founded by Eduardo Saverin (Facebook Co-Founder), bought a stake in e-pharmacy company PharmEasy for USD 20 million. Sources confirmed that the stakes were bought through a secondary deal.

Days before this deal, Tatas acquired a majority stake in 1mg, a rival e-pharmacy company. Like B Capital, American investment company Tiger Global is planning to finalize an infusion worth USD 20 million in API Holdings, the parent company of PharmEasy.

In April, PharmEasy was valued at USD 1.5 billion which has now reached USD 1.8 billion. The e-pharmacy firm joins the list of fastest-growing Indian startups valued above USD 1 billion.

A subject-matter expert stated that the transaction of B Capital was complete after the partial exit of Everstone Capital. The deal for Tiger Global will be complete as soon as the pending paperwork is finished.

Everstone Capital sold partial holdings of PharmEasy and its shares were bought by B Capital. The VC firm has previously invested in Khatabook, Bounce, and Byju’s. In a span of three months, it will be the second time that PharmEasy conducts an employee stock ownership plans (Esops) buyback worth USD 3 million.

Co-founder of PharmEasy, Dhaval Shah, stated that the firm has executed over USD 8 million worth of Esop buybacks in the last three months.

He further added that the latest buyback was executed as a reward to its employees during these unprecedented times. A few months ago, the company executed an Esop buyback of USD 5 million, taking the company’s Esop buyback total to over USD 13 million.

Like PharmEasy, other startups like Razorpay and PhonePe have performed Esop buybacks. PharmEasy acquired emerging rival Medlife earlier this year, making the e-pharmacy firm the largest platform in the sector.

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