Here’s a curious thought for you this Sunday: Whenever a startup acquires a legacy firm or a bigger player, it has usually not worked out.

Take the billion-dollar deal between BYJU’S and coaching giant Aakash, which has more or less failed in light of the troubles for BYJU’s. Or ride-hailing startup Ola, which splurged nearly $200 Mn to acquire FoodPanda and enter food delivery, before realising it was not just about acquiring a company.

There are exceptions of course, but more of than not, it has not turned out to be a good match.

PharmEasy took it a notch higher to become the first startup to acquire a publicly listed company — Thyrocare — back in June 2021 for INR 4,440 Cr (around $600 Mn at the time), a 9X revenue multiple.

Thyrocare was profitable all along and PharmEasy was flush with over $1 Bn funds raised. What PharmEasy did not have was profits, and it was hoped that Thyrocare would be the magic bullet to change this. Unfortunately for PharmEasy, four years later, profits are still elusive.

In fact, the company has reported a loss of INR 1,517 Cr in FY25, which is 40% lower than FY24, but with its top line remaining almost flat, this was not a major needle-moving improvement. Even so, that’s an improvement on the 15% revenue decline in FY24.

So time to dive deeper into the B2B and B2C pharma company’s woes, but after a look at the top stories from our newsroom this week:

• PhysicsWallah’s IPO Litmus Test: Earlier this week, the edtech major filed its updated DRHP to raise INR 3,820 Cr via its IPO. Amid the dilapidated state of Indian edtech, the listing could be a breath of fresh air. But is PW’s touted listing more smoke than fire?
• The Q-Commerce Ad Goldmine: The quick commerce arena has turned into a marketing battleground. What started as a convenience play has evolved into India’s newest advertising goldmine that is threatening Google and Meta.
• FirstClub’s Premium Q-Comm Sizzle: Unlike other quick commerce players, the startup sells “high-quality” everyday essentials and lifestyle products at affordable prices. Can its premium-focussed model compete with giants like Zepto, Blinkit and Instamart?

PharmEasy’s Ambition: Build A Health Empire

Siidharth Shah and his close friends and cofounders Dharmil Sheth, Dhaval Shah,........

© Inc42