Digital Pharmacy Alto Secures $50 Million Series C Funding to Expand Same-Day Prescription Delivery

VCBeat (WeChat Official Account: vcbeat) has learned that on December 5 (U.S. local time), digital pharmacy Alto announced the completion of a $50 million Series C financing round. The investment was led by Zola Global and Greenoaks Capital, with participation from Jackson Square Ventures, Olive Tree Capital, and other unnamed investors.

Alto, founded in 2015 and formerly known as ScriptDash, is a U.S.-based digital pharmacy company. The company is dedicated to building patient-centric pharmacies and offers free same-day medication delivery.

In addition, Alto has launched a patient-facing mobile application that enables users to order medications, request refills, view pricing information, communicate with pharmacists as needed, and coordinate care with providers or insurers. To address challenges related to prior authorization, insurance coordination, and improving patient testing, Alto also offers pharmacy management software and provider platforms.

Image source: Alto official website

According to Alto’s statement, the company has established partnerships with institutions such as the University of California, San Francisco (UCSF), Stanford University, and One Medical. Currently, its platform serves more than 50,000 patients. However, in reality, Alto’s pharmacy delivery services are limited to the San Francisco Bay Area and Southern California.

Alto stated in its announcement that the new funding will help the company expand its technology-driven prescription drug delivery services to patients beyond major U.S. cities and broaden its product portfolio for chronic and complex conditions.

Previously, Alto secured seed, Series A, and Series B funding in June 2015, June 2016, and June 2017, respectively. The Series A round amounted to $6 million, while the Series B round raised $1.7 million.

On the surface, all signs indicate that digital pharmacies such as Alto are currently experiencing growth.

This year alone, Capsule, a New York City-based online pharmacy and medication delivery service provider, and Jianke Pharmaceutical, a Chinese online pharmacy retailer, have secured substantial funding. Meanwhile, Amazon has made a major entry into the virtual pharmacy market following its acquisition of PillPack in June this year. Rumors suggest that the deal was valued at nearly $1 billion.

“Over the past three years, we have demonstrated that Alto’s model works for both physicians and patients, reducing administrative burden for doctors while improving medication adherence among patients,” said Matt Gamache-Asselin, CEO and co-founder of Alto, in a statement. A single Alto pharmacy, operating with one distribution center and a same-day delivery system, can serve 400 chain pharmacy locations. With the infusion of new capital, Alto’s medication delivery service will be able to reach more patients across China and fill the gap in experience for prescription drug delivery services by pharmacies.

Greenoaks Capital is a globally leading consumer internet investment firm, founded in 2012 and headquartered in the United States. The firm primarily makes concentrated, long-term investments in technology companies worldwide.

Jackson Square Ventures (JSV), founded in 2011 and headquartered in the United States, is a venture capital firm that primarily provides Series A financing to market startups. To date, the firm has invested in 45 companies, with total investments amounting to approximately $1 billion, 75% of which are Series A rounds.

Olive Tree Capital is a cross-industry, cross-regional, and multi-scope securities investment institution that is not constrained by traditional transaction structures, asset classes, or investment horizons. Leveraging diversified mandates from individual investors, it seeks valuable investment opportunities worldwide.