Digital pharmacy Alto announced a $200 million Series E funding round led by Softbank Vision Fund. 

This news comes roughly two years after the company closed a $250 million Series D round. This new funding round boosts the San Francisco startup's total raise to more than $550 million. 

WHAT IT DOES

Patients are able to transfer an existing prescription or have their doctor send a prescription to Alto. The service is then able to deliver the patient's medication to their home on the same day. Clients can also tap into a digital feature that lets them chat with a pharmacist about side effects or specific medication concerns. 

The company pitches its digital pharmacy as a way to help patients cut costs. The startup boasts that its revenue was over $700 million in the last year, and that it has expanded to 12 markets in the U.S. 

In 2020, the company made a deal with virtual care provider Hims & Hers. The partnership allowed Hims & Hers patients to select Alto as their preferred pharmacy. 

WHAT IT'S FOR 

The company has its eyes on growth for the future. 

“We’ve been laser-focused for the last seven years on building solutions to the foundational issues plaguing the broken pharmacy industry. We’re so proud of the progress the team has made, quietly solidifying our position as the market leader in the rapidly growing digital pharmacy market,” Alto cofounder Jamie Karraker said in a statement.

“We’re thrilled this new funding will enable us to continue to define this evolving industry and to help even more patients get the care they deserve.”

MARKET SNAPSHOT 

Digital pharmacies are growing in popularity. Last week, the Mark Cuban Cost Plus Drug Company announced the roll out of its online pharmacy. The company, which also owns a pharmacy benefit manager operation, pitched the venture as a way to cut medication costs for patients by cutting out the middleman.

In 2018, Amazon entered the digital pharmacy space after acquiring startup PillPack for just under $1 billion. Since then, the retail giant has integrated PillPack into its new offering, Amazon Pharmacy. 

Digital pharmacies have seen some of the biggest venture deals in the last few years. Capsule, another digital pharmacy, scored $300 million in April, bringing its total raise to $570 million. Additionally Medly closed a $100 million Series B funding round in 2020.