PharmEasy founders step back to launch new venture in consumer space

Dhaval Shah, Dharmil Sheth and Hardhik Dedhia, founders of API Holding, which runs PharmEasy, are set to start a new venture in the consumer space.

 

Siddharth Shah, chief executive officer (CEO) and managing director (MD) of PharmEasy has also invested in the new venture in his personal capacity.

 

Some venture capitalists (VCs), who backed the founders in their earlier venture, have also pumped in money.

 

The founders also confirmed that this will mean they will be stepping away from day-to-day operations of the epharmacy startup.  

 

“This day-to-day operational handover has always been in the works for more than a year. Now, we are glad the company is in great shape with operational cash flow break even in the last quarter. Some great leaders have now handled our day-to-day responsibilities as well,” said a statement from Shah, Sheth and Dedhia.

 

They also said: “Our commitment remains intact in the business and we continue to hold shares for the long run and value creation.”

 

Seth, Shah and Dedhia will continue with board positions in thyrocare and API. They will remain steadfast backers to building India’s best healthcare company and repose their trust in Siddharth Shah & team, said the statement.

 

Meanwhile, a statement from PharmEasy stated that the other four founders also continue to be a part of the group. They align their shareholding for the long run and continue to be members / observers on the board. They plan to reduce their involvement in active day-to-day executive responsibilities.

 

“This transition has been in the works for a few quarters and we are delighted the new team has achieved operational cash flow break even. It continues to handle all the responsibilities well,” said Siddharth Shah in the statement.

 

According to a source, the founders had told the board and Shah in March 2024 that they would like to start something by themselves.

 

“The new venture is unrelated and in a non-compete space as PharmEasy,” said the source.

 

The founders’ holding in the company individually is also below 1 per cent. PharmEasy was started in 2015. However, the total shareholding of founders over 10 per cent range.

 

The company has raised a total funding of $688 million. The largest funding round was $300 million raised in 2021.

 

In 2023, the firm, after much struggle, raised Rs 1,300 crore from Ranjan Pai of the Manipal Group. 

 

Pai’s investment is part of the Rs 3,500 crore fundraise that the company has done through a rights issue.