PharmEasy, a platform that offers medical services and drugs in India, has reportedly reduced its workforce due to financial difficulties.
The company has been downsizing across various departments, including technology, design, sales, operations, logistics, and procurement. Although the exact number of employees affected is unclear, sources suggest that up to 40 percent of the workforce may have been impacted. The downsizing comes as PharmEasy faces challenges in raising funds, leading to cost-cutting measures.
Some of the employees were reportedly laid off due to performance-related issues, as well as financial constraints and cost-cutting measures. It has been reported that the company conveyed to a significant number of impacted employees that the reason for their job termination was financial challenges. However, some employees were let go due to underperformance, according to reports.
In August of last year, PharmEasy announced that it would raise funds through a rights issue involving its existing shareholders after withdrawing the draft red herring prospectus (DRHP) for its initial public offering (IPO). The IPO was expected to raise between Rs. 3,000 crore to Rs. 3,700 crore, but the company withdrew due to ‘market conditions and strategic considerations.’
PharmEasy secured an undisclosed amount of debt financing from EvolutionX Debt Capital in November of last year. EvolutionX Debt Capital is a platform that provides financing to growing businesses.
