A New York digital pharmacy has raised $200 million in new funds to help take its business national.
Capsule, a digital pharmacy that provides a two-hour delivery window in Manhattan, has raised the money from TCMI Inc., a New York investment banking company that to date has invested over $12 billion in more than 250 companies, including ecommerce companies such as eBags.com and others.
Capsule’s existing investors—Thrive Capital and Glade Brook Capital Partners— participated in the new round of funding.
Since launching Capsule as an alternative to bricks-and-mortar pharmacies in 2015, Capsule has raised more than $270 million in funding, which the company is using to expand nationally, says CEO Eric Kinariwala.
Details are still forthcoming on specific expansion plans, but Capsule plans on expanding to “most major markets in 18 to 36 months,” Kinariwala says.
“We’ve raised $200 million to fuel our continued growth in New York, to double down on our technology platform, and to bring our consumer experience to people everywhere,” he says in a recent blog post on LinkedIn.com.
Capsule promises customers it will deliver prescriptions in about two hours for free to customers living in Manhattan and the four other boroughs of New York City. “60 minutes is the typical time a lot of New Yorkers wait to have a prescription filled,” Kinariwala says.
Capsule has its own courier network of employees that undergo background checks, have passed a commercial bicyclist safety course, and undergo HIPAA security training for patient privacy, the company says.
Capsule says it wants to use the web to make fulfilling prescriptions faster and easier for consumers—the company claims its e-commerce and prescription management system can switch over a prescription from an existing pharmacy in about 30 seconds. The latest version of Capsule’s Apple app also lets users switch between saved addresses and credit cards at checkout.
So far, about 60,000 patients have downloaded Capsule’s app, the company says.