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Mumbai-based online medicine seller Pharmeasy is set to raise Rs 3,500 crore through a rights issue next week, as per a report by Mint. The funds will help the firm repay a big portion of its Goldman Sachs debt.

The rights issue will include a commitment of Rs 2,000 crore from existing investors Temasek Holdings, TPG, Prosus, CDPQ, Eight Roads, LGT, Abu Dhabi sovereign wealth fund ADQ, Amansa, OrbiMed, and Sunil Kant Munjal’s family office, according to the report.

Ranjan Pai, Founder of Manipal Health Enterprises, has also reportedly agreed to invest Rs 1,200 crore. 

YourStory has reached out to PharmEasy for comments on the development and the story will be updated accordingly.

A rights issue refers to an offer to existing shareholders to buy additional shares of the company on a pro-rata basis.

In June, PharmEasy breached the covenant on its term loan from Goldman Sachs, prompting it to seek out additional funding or restructure the terms, as per a report by The Economic Times. This came after the e-pharmacy failed to raise Rs 1,000 crore at the time after postponing its public share sale plan amid tough macroeconomic conditions.

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Some of PharmEasy’s investors also slashed its valuation earlier this year. Neuberger Berman cut the valuation of its holdings to $4.4 billion while Janus Henderson brought it down to $2.8 billion.

Last month, The Economic Times reported that the company plans to raise Rs 2,400 crore through a rights issue at a 90% markdown from its last valuation to pay back a loan.