Digital pharmacy startup Capsule banked $300 million in new capital funding that raises its valuation to more than $1 billion.
Durable Capital Partners led the funding round and was joined by new investors Baillie Gifford, T Rowe Price, and Whale Rock.
Capsule plans to use the fresh capital to expand to new markets and invest in its technology.
The startup's aim is to build a "one-stop-shop" for digital healthcare where consumers can access Capsule’s digital pharmacy along with a curated set of products and services—such as telemedicine or mental health support—all from within a single app, according to company executives.
Founded in 2015, the company has expanded beyond New York City to more than a dozen markets, including Austin, Chicago, Los Angeles and Minneapolis.
The COVID-19 pandemic has made the need clear for a robust digital healthcare system extending from the doctor’s office into the home. While many companies have focused on addressing parts of the solution, few have taken a holistic approach. Capsule aims to help solve that, according to Eric Kinariwala, founder and CEO of Capsule.
“Capsule’s long-term ambition is to create a single place where consumers can access all of their health care needs in a single, simple, holistic place," Kinariwala said in a statement, citing the example of buying an iPhone and choosing apps for different services.
"We’re doing that in a way that brings everybody in health care together versus trying to own all of those things ourselves," he said.
Capsule’s one-stop-shop will help increase consumer health care access, choice, and health outcomes. And the new platform will help industry partners transition to digital health care by forgoing the need to spend many years and hundreds of millions of dollars to create a solution from scratch, the company said.
Major employers, health insurance companies and other partners can leverage Capsule’s platform to build a turn-key, customized digital health care offering.
In addition to expanding its digital health offering and industry partnerships, Capsule plans to expand its pharmacy services to cities across the country. By year’s end, Capsule anticipates it will have the ability to reach 100 million Americans.
Capsule has raised $570 million in the past six years, according to Crunchbase.
In September, Capsule scored $200 million in its latest funding round and plans to expand its same-day prescription delivery services nationwide
In March, mental health startup Ginger announced a tie-up with Capsule for at-home delivery of prescription mental health medications.
The digital pharmacy market has been heating up as companies look to offer more services to patients at home.
Online retail behemoth Amazon ramped up the healthcare competition with the rollout of the new Amazon Pharmacy in November. Amazon's service offers prime members unlimited, free two-day delivery for medications and prescription savings benefits.
It's an increasingly competitive landscape. UnitedHealth Group stepped into the online pharmacy space with the acquisition of startup DivvyDose earlier this year. Walmart also previously snapped up medication management technology from startup CareZone.
Other digital pharmacies making waves in the space include GoodRx, NowRx, Medly Pharmacy and Alto Pharmacy.