Written by : Dr. Aishwarya Sarthe
January 24, 2025
The company confirmed that Siddharth Shah, the fourth co-founder, will continue to lead the Bengaluru-based firm.
PharmEasy, one of India’s prominent online pharmacy platforms, is undergoing a significant leadership shift as three co-founders—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—have stepped down from their executive roles.
The company confirmed that Siddharth Shah, the fourth co-founder, will continue to lead the Bengaluru-based firm.
In a statement, the company revealed that the departing co-founders would remain part of the group, aligning their shareholding for the long term. While stepping back from daily executive responsibilities, they will continue contributing as board members or observers.
“This transition has been in the works for several quarters,” PharmEasy said in its official statement. It also highlighted the achievement of operational cash flow break-even, adding that the new team effectively manages responsibilities. The three outgoing co-founders shared their future plans in a joint statement, “The three of us—Dhaval, Dharmil, and Hardik—are starting something new in the consumer space. Reputed VCs who backed us at PharmEasy are backing us again.”
PharmEasy has faced financial challenges over the past year, with its revenue from operations declining by 14.8% to INR 5,664 Cr in FY24 compared to INR 6,644 Cr in FY23.
However, the company reduced its losses by 51.4% through stringent cost-cutting measures, bringing them down to INR 2,533.5 Cr during the same period.
The company has raised approximately $1.1 billion from investors such as Ranjan Pai’s MEMG, Prosus, and Temasek. Notably, it secured $216 million in funding during a down round in April 2024, which valued the company at approximately $710 million.
Despite these efforts, global asset management firm Janus Henderson significantly reduced PharmEasy’s valuation by 91.8% to $458 million in September 2024.
PharmEasy is also preparing to relaunch its initial public offering (IPO) after withdrawing its 2021 filing due to unfavorable market conditions.
The company hopes to navigate the challenges and revive its position in the healthcare market.
This leadership shift reflects a pivotal moment for PharmEasy as it seeks to balance its operational goals with the demands of an evolving healthcare and investment landscape.