Pharmaceutical startup NowRx as we speak introduced it has closed a $20 million spherical raised by means of crowdfunding platform SeedInvest. NowRx, which claims the spherical is the biggest in SeedInvest’s historical past, says it is going to use the funds to develop into new U.S. markets (together with Arizona) and bolster its pharmacy know-how.
The world e-pharmacy market may very well be price $107.53 billion by 2025, according to Zion Market Research, and the pandemic will little question speed up its development. Contactless shipments promise to restrict publicity to the coronavirus whereas saving time in any other case spent standing in line.
NowRx’s supply platform — QuickFill — leverages last-mile logistics algorithms that optimize pace and the variety of stops per route. The startup operates 5,000-square-foot micro-fulfillment facilities in cities like Burlingame, California, the place automation applied sciences — together with robots — kind, rely, bottle, and label orders “at the same or better” margins as giant pharmacy chains. A typical NowRx pharmacist can course of greater than 2,000 prescriptions a day with a meting out error charge of about 0.00012, NowRx CEO Cary Brees claims.
Patients within the California cities of Mountain View, Irvine, San Jose, and Burlingame can textual content an image of an current prescription label to the corporate’s hotline or inform their physician to ship new prescriptions to NowRx. When NowRx receives an order, its customer support representatives textual content or name to schedule a supply with a HIPAA-certified driver. Alternatively, sufferers can use a cell app to schedule and monitor deliveries, which arrive the identical day in the event that they’re ordered earlier than 5 p.m.
NowRx is electronically linked to insurance coverage suppliers and affords textual content, calls, and video chats with pharmacists. Once it processes prescriptions in its system, it checks for — and applies — any producer coupons that may be out there and robotically handles refills.
The startup is hardly the one digital pharmacy making door-to-door deliveries. Amazon’s Pillpack, which is licensed in 49 states, prices clients $20 a month for its medicine achievement service. Nurx affords contraception and HIV prevention medicine by way of mail. In New York City and New Jersey, Capsule delivers prescriptions inside two hours. And Walgreens and CVS supply supply by means of companions like Postmates.
But NowRx — which makes cash by shopping for drugs in bulk and promoting them at retail — says it’s seeing development regardless of the competitors. In the final yr, the corporate’s buyer base grew by 84% and revenues elevated by 78%. Since NowRx’s first supply in 2016, it has delivered over 200,000 prescriptions to greater than 28,000 clients, and it’s now utilized by over 4,500 physicians.
NowRx’s $20 million crowdfunding elevate follows the shut of a $three million debt spherical led by Decathlon Capital Partners and brings the startup’s complete raised to $30 million.