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Epharmacy unicorn Pharmeasy has reportedly breached its loan covenant terms with Goldman Sachs within a year after raising high-cost debt from the US-based lender.

Per the terms, the company was supposed to raise equity of around Rs 1,000 crore, or about $120 million, linked to its burn rate velocity. According to a report by The Economic Times, It failed to do that after trying for a year and delaying its initial public offering (IPO). However, PharmEasy has not defaulted on any of its payment obligations so far.

PharmEasy had borrowed Rs 2,280 crore, or $285 million, from Goldman Sachs in August last year to pay off an earlier debt it had incurred from Kotak Mahindra Bank to buy Thyrocare. The five-year loan attracted a 17-18% annual interest rate.

The company hoped to pay off Rs 2,000 crore of its debt from the proposed IPO proceeds of Rs 6,250 crore. However, with IPO plans of API Holdings pushed by at least two years to 2025, and a pre-IPO down round to raise $250 million-$300 million also failing last year, a capital raise may not be that straightforward.

The company continues to service its high-cost debt, paying back only $50 million.

Earlier in May, Janus Henderson, a top investor in Pharmeasy, slashed the healthtech firm’s valuation to $2.8 billion. This is the second markdown in the valuation of the e-pharmacy this year.

Previously, US fund Neuberger Berman cut the valuation of API Holdings (parent of PharmEasy) to $4.4 billion, according to a regulatory filing with the Securities and Exchanges Commission in the US.