Online pharmacy giant PharmEasy is undergoing a significant leadership transition as three of its co-founders—Dharmil Sheth, Dhaval Shah, and Hardik Dedhia—have decided to step back from their active roles in the Bengaluru-based company. The fourth co-founder, Siddharth Shah, will continue to lead the company and oversee its operations.
In a statement, PharmEasy clarified that while the departing co-founders will no longer be involved in day-to-day executive responsibilities, they will remain part of the group in advisory roles, aligning their shareholding for long-term value and continuing as board members or observers.
The transition, according to the company, has been planned for several quarters. PharmEasy expressed confidence in its new leadership, noting that the team has achieved operational cash flow break-even and is effectively managing responsibilities.
In a joint statement, Dharmil, Dhaval, and Hardik revealed their plans to embark on a new entrepreneurial journey in the consumer space, backed by the same reputed venture capital firms that supported PharmEasy.
The news comes as PharmEasy faces financial headwinds. The company has raised around $1.1 billion to date from investors, including Ranjan Pai’s MEMG, Prosus, and Temasek. However, its valuation has seen a steep decline. In April 2024, PharmEasy secured $216 million in a down round, reducing its valuation to approximately $710 million. Later, in September, Janus Henderson slashed its valuation by 91.8%, bringing it down to $458 million.
PharmEasy is also making efforts to revive its initial public offering (IPO). The company initially filed for an IPO in November 2021 but withdrew the application, citing unfavourable market conditions.
Operationally, PharmEasy’s revenue declined by 14.8% in FY24, falling to Rs 5,664 crore from Rs 6,644 crore in FY23. However, aggressive cost-cutting measures have helped the company reduce its losses by 51.4% to Rs 2,533.5 crore during the same period.
As the company navigates these changes, the co-founders’ new venture is set to introduce fresh energy into the consumer space, marking a new chapter for these seasoned entrepreneurs.
