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US-based Neuberger Berman has slashed the valuation of two Indian unicorns, Pine Labs and API Holdings (Pharmeasy), by around 39 per cent and 22 per cent respectively.
These cutoffs have brought fintech unicorn Pine Labs’ valuation to $3.14 billion from its last valuation of $5 billion. In the case of healthtech major, Pharmeasy, its valuation has dropped from $5.6 billion to $4.39 billion.
Pharmeasy had attempted to list on the public markets in 2021 but later withdrew its offer as market sentiments worsened. The health-tech company was also reportedly looking to raise a down round of $200 million. However, there has been no official announcement of a fundraise at Pharmeasy.
Also read: Only four Indian unicorns raised funds in Q4 FY23
In 2022, Pharmeasy laid off over 50 employees affecting employees in product technology, quality analytics, and support verticals. It also laid off employees at its electronic medical record subsidiary Docon Technologies. The company cited restructuring, macroeconomic conditions, and the Russia-Ukraine war as the reasons for the layoffs.
Pharmeast and Pine Labs did not comment on the story. Economic Times was the first to report this development.
Ongoing funding winter
Pine Labs and Pharmeasy are not the only unicorns that have seen their valuations slashed in the ongoing funding winter. Another American investor Vanguard Group also slashed ride-hailing major Ola’s valuation by 35 per cent to $4.8 billion as compared to its peak $7.3 billion valuation.
Similarly, Invesco has cut down food delivery major Swiggy’s valuation to $5.5 billionin January 2023 from its last valuation of $10.7 billion in January 2022. Also in March 2023, Invesco slashed Swiggy’s valuation to $8-billion. Invesco led a $700-million funding round in Swiggy in January 2022.
Prosus, too, pegged BJYU’s valuation at $6 billion in November 2022. BJYU’s raised its last funding round at a valuation of $22 billion. In late 2022,Oyo’s valuation was also slashed from $10 billion to $2.7 billion by Japanese conglomerate, SoftBank.
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