PharmEasy’s revenue from operations fell 14.75% to INR 5,664.2 Cr in FY24 from INR 6,643.9 Cr in FY23

The epharmacy charted somewhat of a turnaround in FY24 as its outgo due to exceptional items declined 65% to INR 1,026.9 Cr in FY24 from INR 2,921.9 Cr in FY23

PharmEasy’s total expenditure declined 19.16% to INR 7,254.8 Cr in FY24 from INR 8,974 Cr in FY23

Digital pharmacy PharmEasy saw its consolidated net loss halve to INR 2,531.1 Cr in the financial year 2023-24 (FY24) on the back of a decline in its expenses and exceptional items. The company’s net loss declined 51.35% from INR 5,202.5 Cr in FY23.

However, it also saw a decrease in its operating revenue. PharmEasy’s revenue from operations fell 14.75% to INR 5,664.2 Cr in FY24 from INR 6,643.9 Cr in FY23.

The company primarily generated revenue from its medicine marketplace, which contributed INR 5,007.7 Cr to its total top line in FY24. On the other hand, it earned INR 652.3 Cr in revenue from sale of services, which comprised diagnostic services, teleconsulting and licensing of its software and other offerings.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy sells medicines through its flagship online platform and offers diagnostic services through its subsidiaries. 

Having faced a funding crunch for the majority of the past two years, the epharmacy charted somewhat of a turnaround in FY24 as its outgo due to exceptional items declined 65% to INR 1,026.9 Cr in FY24 from INR 2,921.9 Cr in FY23. 

Under the exceptional items head, the company’s goodwill impairment fell nearly 80% to INR 582.5 Cr in FY24 from INR 2,825.6 Cr in FY23. However, the fiscal under review saw an additional expenditure in the mix as PharmEasy incurred “early redemption charges” for non-convertible debentures (NCD) worth INR 342.5 Cr, which were nil last fiscal. 

The reduction in loss comes as good news for PharmEasy, which has been marred by significant financial and operational struggles in the recent past. The company’s valuation plummeted by 90% during its INR 1,804 Cr fundraise in April this year compared to its peak $5.6 Bn valuation in October 2021. 

It was also the worst-performing Indian investment in Prosus’ portfolio during H1 FY24, registering an internal rate of return (IRR) of -41%. Furthermore, PharmEasy also grabbed negative headlines for undertaking mass layoffs and a major restructuring exercise in the past one year. 

Zooming Into Expenses

PharmEasy’s total expenditure declined 19.16% to INR 7,254.8 Cr. in FY24 from INR 8,974 Cr in FY23. Here is a breakdown of the startup’s biggest cost centres:

Purchase Of Stock-In-Trade: Expenses under this bucket decreased 17.04% to INR 4,572.8 Cr in FY24 from INR 5,512 Cr in FY23.

Employee Benefit Expenses: The company spent INR 699.3 Cr on employee-related benefits in FY24, down 45.51% from INR 1,283.3 Cr in the previous year. 

Finance Costs: Expenses under this head increased 9.38% to INR 727.9 Cr in the fiscal under review from INR 665.5 Cr in the financial year ended March 2023. 

Expected Credit Loss On Financial Assets: The healthtech major’s expected credit loss on financial assets increased 147.3% to INR 169.2 Cr in FY24 from INR 68.3 Cr in FY23. 

Contractual Payments For Delivery Executives: Costs under this bucket declined 27% to INR 78.6 Cr during the year under review from INR 108.7 Cr in FY23.

Legal Expenses: The company spent nearly INR 60 Cr towards legal and professional fees in FY24, down 46% from INR 112 Cr in the previous fiscal. 

Sales Promotion & Marketing Expenses: PharmEasy trimmed its marketing expenditure by nearly 90% to INR 24.4 Cr in FY24 from INR 235 Cr in FY23. 

PharmEasy’s revenue from operations fell 14.75% to INR 5,664.2 Cr in FY24 from INR 6,643.9 Cr in FY23

The epharmacy charted somewhat of a turnaround in FY24 as its outgo due to exceptional items declined 65% to INR 1,026.9 Cr in FY24 from INR 2,921.9 Cr in FY23

PharmEasy’s total expenditure declined 19.16% to INR 7,254.8 Cr in FY24 from INR 8,974 Cr in FY23

Digital pharmacy PharmEasy saw its consolidated net loss halve to INR 2,531.1 Cr in the financial year 2023-24 (FY24) on the back of a decline in its expenses and exceptional items. The company’s net loss declined 51.35% from INR 5,202.5 Cr in FY23.

However, it also saw a decrease in its operating revenue. PharmEasy’s revenue from operations fell 14.75% to INR 5,664.2 Cr in FY24 from INR 6,643.9 Cr in FY23.

The company primarily generated revenue from its medicine marketplace, which contributed INR 5,007.7 Cr to its total top line in FY24. On the other hand, it earned INR 652.3 Cr in revenue from sale of services, which comprised diagnostic services, teleconsulting and licensing of its software and other offerings.

Founded in 2015 by Dharmil Sheth, Dhaval Shah, Harsh Parekh, Siddharth Shah, and Hardik Dedhia, PharmEasy sells medicines through its flagship online platform and offers diagnostic services through its subsidiaries. 

Having faced a funding crunch for the majority of the past two years, the epharmacy charted somewhat of a turnaround in FY24 as its outgo due to exceptional items declined 65% to INR 1,026.9 Cr in FY24 from INR 2,921.9 Cr in FY23. 

Under the exceptional items head, the company’s goodwill impairment fell nearly 80% to INR 582.5 Cr in FY24 from INR 2,825.6 Cr in FY23. However, the fiscal under review saw an additional expenditure in the mix as PharmEasy incurred “early redemption charges” for non-convertible debentures (NCD) worth INR 342.5 Cr, which were nil last fiscal. 

The reduction in loss comes as good news for PharmEasy, which has been marred by significant financial and operational struggles in the recent past. The company’s valuation plummeted by 90% during its INR 1,804 Cr fundraise in April this year compared to its peak $5.6 Bn valuation in October 2021. 

It was also the worst-performing Indian investment in Prosus’ portfolio during H1 FY24, registering an internal rate of return (IRR) of -41%. Furthermore, PharmEasy also grabbed negative headlines for undertaking mass layoffs and a major restructuring exercise in the past one year. 

Zooming Into Expenses

PharmEasy’s total expenditure declined 19.16% to INR 7,254.8 Cr. in FY24 from INR 8,974 Cr in FY23. Here is a breakdown of the startup’s biggest cost centres:

Purchase Of Stock-In-Trade: Expenses under this bucket decreased 17.04% to INR 4,572.8 Cr in FY24 from INR 5,512 Cr in FY23.

Employee Benefit Expenses: The company spent INR 699.3 Cr on employee-related benefits in FY24, down 45.51% from INR 1,283.3 Cr in the previous year. 

Finance Costs: Expenses under this head increased 9.38% to INR 727.9 Cr in the fiscal under review from INR 665.5 Cr in the financial year ended March 2023. 

Expected Credit Loss On Financial Assets: The healthtech major’s expected credit loss on financial assets increased 147.3% to INR 169.2 Cr in FY24 from INR 68.3 Cr in FY23. 

Contractual Payments For Delivery Executives: Costs under this bucket declined 27% to INR 78.6 Cr during the year under review from INR 108.7 Cr in FY23.

Legal Expenses: The company spent nearly INR 60 Cr towards legal and professional fees in FY24, down 46% from INR 112 Cr in the previous fiscal. 

Sales Promotion & Marketing Expenses: PharmEasy trimmed its marketing expenditure by nearly 90% to INR 24.4 Cr in FY24 from INR 235 Cr in FY23.