B Capital, founded by Facebook co-founder Eduardo Saverin, and Tiger Global, a New York-based investment firm, are in advanced talks to buy a share in e-pharmacy PharmEasy.
It is estimated that this deal could value at most $1.8Billion in the API holdings, Its valuation has risen from $1.5 billion in April, allowing it to join India’s fast-growing group of unicorns – businesses valued at $1 billion or more.
Prosus Ventures, previously Naspers, and TPG Growth, a US-based investment firm, led the $350-million deal.
According to sources close to the situation, Tiger Global is expected to invest primary money in PharmEasy, while B Capital may buy secondary shares as one of its early investors, Everstone Capital wants to sell a portion of its stake in online pharmacy. According to them, the transaction’s total value might be about $40 million.
“Everstone is looking to sell parts of its holding and B Capital is likely to pick that, though (Everstone) had also spoken to few others as well,” according to one person cited above.
“B Capital is investing about $15-20 million,” said the person cited earlier.
Pharmacy cofounder Dhaval Shah declined to make any comment. B Capital and Everstone Capital did not respond to emails forwarded to them until after press time on Friday. Even Tiger Global did not respond to a request for comment.
“It (PharmEasy) is currently focusing on secondary investments to give some exit to early investors,” the company’s spokesperson said. “It is also exploring the possibility of launching an initial public offering but will wait to see how Zomato’s IPO plays out. If that goes well, they might expedite IPO plans.”
Zomato, a food tech platform, submitted a draught red herring document with India’s markets regulator earlier this month, seeking an offering of Rs 8,250 crore.
PharmEasy is reportedly considering a $3 billion initial public offering, according to ET.