Neuberger Berman Cuts Pine Labs, PharmEasy Valuation


Neuberger Berman, a US investment firm, has reduced the value of its stakes in Api Holdings, the parent company of Pharmeasy, and fintech a behemoth Pine Labs. PharmEasy and Pine Labs join the likes of Ola, BYJU’S, Oyo, and Swiggy, whose investors have lately reduced their values.

According to a regulatory filing with the Securities and Exchange Commission in the United States, Neuberger Berman reduced Pine Labs’ valuation to USD 3.1 billion from USD 5 billion, and PharmEasy’s to USD 4.4 billion from USD 5.6 billion (a almost 21 per cent decrease).

Pine Labs was previously valued at more than USD 5 billion following a USD 150 million investment round from Alpha Wave Global, while PharmEasy was valued at USD 5.6 billion following a USD 350 million pre-IPO fundraise. API Holdings stated in a regulatory filing in November of last year that it wanted to withdraw its draft red herring prospectus (DRHP) owing to turbulent market conditions.

Pine Labs’ valuation was maintained by Invesco, which recently devalued its Swiggy stock. According to media reports, Temasek-backed PharmEasy has been struggling to secure funding despite reducing its headcount by roughly 40 per cent.

Vanguard, SoftBank, Blackrock, and Invesco are among the investors who have recently reduced their values of Indian firms. According to RoC filings with the Ministry of Corporate Affairs, API Holdings reported a net loss of Rs 3,992 crore for FY22, compared to Rs 641 crore in FY21 (2020-21).

Categories: Knowledge Series, Other News

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