This morning digital pharmacy Medly announced the close of a $100 million Series B funding round. The new infusion of cash was led by Volition Capital and Greycroft with participation from Horsley Bridge and Lerer Hippeau.
This comes roughly a year after the New York-based company announced the close of its Series A funding round, which was also led by Greycroft, for an undisclosed amount.
WHAT IT DOES
The tech-enabled pharmacy lets patients schedule same-day delivery over the phone or through text messages. Patients are able to use an app to track where their medications are in transit. Medly has brick-and-mortar branded retail locations where patients can pick up their medications.
The company also has a financial element, and works with insurance companies to find the cheapest copay and manufacture for patients.
WHAT IT’S FOR
The company plans to use the new funds to grow its platform and services.
"We continue to improve patient care by empowering customers to access prescription drugs on their own terms through a potent combination of physical and digital pharmacy services," Marg Patel, CEO and cofounder of Medly, said in a statement. "We are excited to continue to build on that vision by opening locations in new markets and forging meaningful, long-lasting relationships with patients, physicians, drug manufacturers and insurance companies."
MARKET SNAPSHOT
Digital pharmacies have caught the attention of investors. In January, digital pharmacy and drug delivery company Alto announced a $250 million Series D round led by Softbank’s Vision Fund 2. Capsule, another New York-based pharmacy, scored $200 million in funding in September with TCV leading the round.
In March, new pharmacy startup Genius Rx announced that it would be launching this summer with an artificial intelligence-enabled patient engagement tool that also helped with smart pricing.
Even tech giants are jumping into the space. Amazon acquired virtual pharmacy PillPack in 2018 for $753 million. Since then it has been rebranded as PillPack by Amazon Pharmacy.
ON THE RECORD
"We are going through a major shift in consumer behavior, especially in critical sectors like healthcare and pharmacy. Both consumers and medical providers are prioritizing digital access to pharmacy services, and innovators like Medly are well-positioned to lead the market through this unprecedented shift," Ian Sigalow, cofounder and partner of Greycroft, said in a statement. "We are excited to expand on our early investments in Medly and support Marg and team as they invest in their category-leading platform, meet new demands, and reshape the pharmacy industry."
