According to regulatory filings with the US Securities and Exchange Commission (SEC), global asset management firm Janus Henderson has further reduced the valuation of its investment in Mumbai-based online pharmacy PharmEasy's parent company API Holdings.

Janus Henderson funds evaluated their stake in the firm at USD 2.7 billion as of March 31, 2023, less than half of the USD 5.6 billion valuation assigned to PharmEasy at the time of its latest funding round in September 2021. Janus Henderson took part in the latest funding round.

As of December 31, the asset manager valued the epharmacy company at USD 2.8 billion. The latest valuation reduction was reported to the US Securities and Exchange Commission in a filing on May 30. PharmEasy broke the loan covenant requirements for its high-cost debt from Goldman Sachs on Thursday, prompting the reduction.

According to the agreements, the company was intended to raise roughly Rs 1,000 crore, or about USD 120 million, in equity related to its burn rate velocity. It failed after a year of trying and postponing its first public offering (IPO).

Neuberger Berman, PharmEasy's other investor, reduced the company's valuation to USD 4.4 billion as of February 28. Crossover funds, which invest in both publicly traded and privately held companies, conduct frequent valuation reviews on their portfolio companies.

Investors such as Invesco, BlackRock, Fidelity, Vanguard, Baron Capital, Neuberger Berman, and Janus Henderson have recently reduced the valuations of companies such as Meesho, Swiggy, Byju's, Pine Labs, and Ola.