Online pharmacy PharmEasy plans to return to Dalal Street this year, two years after withdrawing its initial public offering (IPO) application.

The business intends to explore its IPO strategy with its board next month, including the prospect of a reverse merger with its publicly traded subsidiary Thyrocare, they said.

The company hopes to gain the trust of public market investors by leveraging its better cash flow position and reorganized business model.

"They (PharmEasy) will debate the IPO plans at the next board meeting in February. Following that, there should be more clarity on the path for the public offering, as well as the size and valuation," said a person familiar with the plans. "The significant reduction in cash burn has been a core focus for the firm during last year and it's showing on the books now".

Meanwhile, three of its cofounders—Dhaval Shah, Dharmil Sheth, and Hardik Dedhia—have stepped down from operational positions but continue to serve on the boards of parent firm API Holdings and Thyrocare.

Siddharth Shah, CEO of API Holdings, continues in his position, collaborating closely with Rahul Guha, president of PharmEasy and CEO of Thyrocare.

According to reports, Shah, Sheth, and Dedhia are also launching a new firm, which will most likely get Siddharth's backing as an investor.

"This transition has been in the works for a few quarters and we are delighted the new team has achieved operational cash flow breakeven and continues to handle all the responsibilities well," said a representative for the company. "The group's focus remains unchanged to create India's best healthcare platform."

In a joint statement, Shah, Sheth, and Dedhia stated, "Our commitment to the business and vision remains intact, and we continue to hold shares for the long term and value creation."

PharmEasy's entrance into the public markets is consistent with a broader trend among Indian companies. Companies such as Boat, Ola Consumer, and Oyo have revived IPO discussions in recent months after postponing or withdrawing their public offerings for a variety of reasons, including market conditions. Oyo, after raising private cash and currently in the process of shareholder restructuring, aims to file draft documents by the first quarter of the new fiscal year.

Last year, nine new-age companies went public, and the number is likely to more than treble by 2025.