Regulatory woes torpedo PE/VC deals in e-pharma sector, shows data

Focus on profitability, and less options other reasons behind the slowdown seen till May this year

With regulatory uncertainties clouding the future of online pharmacies, deals in the space are showing signs of slowdown, as also fresh investment from private-equity (PE) firms and venture capitalists (VCs).

The data from Venture Intelligence shows so far in 2023 (as of June 13) there has been one deal with PE-VC funding. In 2022 there were four, a sharp fall from the 12, totalling $1,520 million, the sector had attracted in 2021. (See chart) Among the major names, PharmEasy had attracted multiple investments in 2019 and 2021 from TPG Growth, Kotak Investment Advisors, Temasek, Eight Roads Ventures and others in