PharmEasy, a Mumbai-based online pharmacy, reported a 14.7% fall in revenue for 2023-24 to Rs 5,664 crore, down from Rs 6,644 crore in FY23, while its net loss fell to Rs 2,533 crore from Rs 5,212 crore.
Goodwill impairment charges were cut to Rs 582 crore last year, down from Rs 2,826 crore in FY23, allowing it to substantially lower its net loss.
In FY24, medicine sales totaled Rs 5,008 crore, with lab testing and other services accounting for Rs 652 crore. Total expenses for the year were Rs 7,255 crore, down from Rs 8,974 crore previous year, but still more than revenue. Employee expenses decreased from Rs 1,283 crore to Rs 699 crore, indicating that the company has taken cost-cutting initiatives.
This follows a major cap table recapitalization of the online pharmacy at a 90% discount to its highest valuation of $5.6 billion in 2021. Manipal Group CEO Ranjan Pai and other investors raised Rs 3,500 crore through a rights offering to service debt and restructure the company.
Since the restructuring, PharmEasy has focused on lowering cash burn in order to become profitable while growing at a sustainable rate.
This has resulted in competitors such as Tata-owned 1mg and Apollo 24X7 acquiring market share. Overall, industry heavyweights such as Flipkart and Amazon India have reduced their discounting rates.
In fiscal year 24, the company's costs comprised Rs 342 crore in early redemption charges for non-convertible debentures. Depreciation and amortization charges totaled Rs 216 crore, compared to Rs 243 crore last year.
