Online prescription service Pharmacy2U gains £40m private equity investment
Britain’s biggest online pharmacy has raised £40m from investors including G Square Capital and the BGF.
Pharmacy2U will use the money to fund the growth of its online repeat prescription service, as it tries to bring the same online disruption which has shaken the retail industry to the pharmacy sector.
Former Boots manager Ted Smith and G Square partner will join the board as non-executive chairman as part of the deal, after the departure of former HBOS banker and investor Andy Hornby.
The firm made a loss of £20m in the year to March 2017, mainly because of the costs of a merger with rival Chemist Direct.
However, it now reports customer numbers have risen by 178 per cent over the past year, including 25,000 new repeat prescription patients in the last month.
G Square led the deal, which makes it the majority shareholder in the firm. The private equity firm invests in healthcare firms across Europe, including UK special needs residential provider Keys Group and other dental and medical operations around Europe.
The BGF’s participation in the fundraising followed a $9m (£7m) investment in May last year from the fund, formerly known as the Business Growth Fund.
Mark Livingstone, Pharmacy2U chief executive, said the firm has enjoyed a “phenomenal period of high growth” and that disruptive technology now promises to make a “significant and much needed mark on healthcare”
Laurent Ganem, founder and chief executive of G Square, said the private equity firm was drawn to Pharmacy2U’s fast growth, momentum in the sector, and its customer experience.
He added: “We believe that its technology and services participate in positively disrupting the healthcare industry in the UK.”