Truepill has raised a $142 million Series D at a $1.6 billion valuation. The company started as a prescription delivery service in 2016 and has since added diagnostics and telehealth services to its offering.
- The online pharmacy landscape is currently very fragmented. It includes legacy players such as CVS and Walgreens as well as myriad VC-backed startups including SoftBank-backed Alto and Capsule, which in the spring raised $300 million at a valuation of over a billion.
- Amazon is another potentially formidable player in this market. The tech giant purchased PillPack in 2018 for about $750 million.
- While the pharmacy industry may seem like an increasingly crowded space, it can likely absorb many providers. According to PitchBook estimates, consumers spend more than $300 billion annually on prescription drugs, with a still relatively small percentage of orders filled online—a massive market opportunity available for disruption.
- Truepill, whose latest raise was led by an undisclosed investor with participation from Initialized Capital and TI Platform Management, acts as a white-label pharmacist to direct-to-consumer providers like Hims and is now expanding to work with larger players, including health plans and life science companies.
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