Directo, Australia’s leading independent online B2B marketplace servicing the pharmacy sector, has launched a $3 million capital raise to accelerate its next phase of growth, after onboarding approximately 54% of all Australian pharmacies and more than doubling revenue over the last two years.
The capital injection will enable Directo to achieve short term growth forecasts building on its current $40 million annualised revenue run rate, by further enhancing its platform, expanding its supplier and pharmacy user base, broadening the offer into allied health services, and developing additional value-add services and revenue generating activities.
Initially designed to cater to the unique needs of the fragmented Australian pharmacy industry with many owner-operators, small groups, franchise networks and different suppliers, Directo’s proprietary online marketplace digitises the supply chain and enhances processes by reducing costs, boosting efficiency, providing price transparency, and simplifying interactions.
Built on Directo’s enterprise technology platform, the online marketplace is configured for, and integrates into, pharmacy enterprise solutions. It transforms the management and interactions of the supply chain for over 3,000 pharmacy retailers by allowing them to directly order from Directo’s database of 180 suppliers and wholesalers with about 30,000 multi-category products through a single transaction. The platform is engineered for seamless integration with existing pharmacy IT, operating, finance and POS (point of sale) systems, ensuring a smooth and efficient ordering process.
Pharmacy chains using the Directo platform include, Terry White Chemmart, Direct Chemist Outlet, Chempro and Good Price Pharmacy Group, while suppliers include McPherson’s, Aero Healthcare, Nude by Nature, The Jojoba Company, Gibson Eyewear and Gibson Gifts.
Directo Founder and creator of the platform, Gavin Upiter said, “Directo is integrating the Australian pharmacy wholesale supply chain - a $20 billion-dollar annual market by seamlessly digitising the pharmacy-to-supplier journey. An average pharmacy can have 50 direct suppliers over and above their main pharmacy wholesaler, so we created Directo to simplify the process and ultimately, save time and money.
“Our platform is designed specifically for the pharmacy sector by industry experts. Directo addresses the needs of retail pharmacies and their suppliers by reducing administrative time through electronic invoicing, consolidating credits, payments, and queries, helping pharmacies with greater cash flow management through extended payment terms for all suppliers, while supporting multi-user accounts and head office functionality. The platform’s highly customisable interfaces and advanced reporting metrics enables all users to receive the tailored information they need to enhance their operations.
“We’ve experienced robust growth over the past two-years, doubling revenue each year to where we are now running at $40 million annualised revenue and onboarding over half the nation’s pharmacies. This $3 million capital raise will enable us to manage this growth by increasing the use of AI in our peripheral task management, phone and analytics tools and growing our workforce to onboard more pharmacies and suppliers and increase usage within the platform.”
Capital Raise Details:
- Directo seeks to raise $3 million with oversubscriptions to be accepted.
- Fully paid ordinary shares will be offered under the capital raising at $3.26 per share based on a pre-money valuation of $25 million.
- Raise is supported by Paul Sinclair AM – Past President, Pharmacy Guild of Australia, NSW Branch, Current President, International Pharmaceutical Federation, David Vaux- Chairman, Arcadia Health Care and pharmacy veteran, Leon Steinkoler.
- Expressions of interest are now open through www.directoau.com by filling out the ‘contact us’ form
-ENDS-
Key Facts:
Directo is Australia’s leading independent online B2B marketplace, that digitises the the pharmacy wholesale supply chain – a $20 billion-dollar annual market in Australia
Trusted by over 50% of pharmacies in Australia
$3 million capital raise to support expansion with fully paid ordinary shares offered at $3.26 per share based on a pre-money valuation of $25 million
Capital raise supported by Paul Sinclair AM - Past President, Pharmacy Guild of Australia, NSW Branch & Current President, International Pharmaceutical Federation, David Vaux- Chairman, Arcadia Health Care and pharmacy veteran, Leon Steinkoler.
About us:
Directo is Australia’s leading independent B2B pharmacy marketplace. Directo delivers B2C-like price transparency, immediacy and convenience while streamlining logistics and invoicing. Directo facilitates the entire buying journey, from promotion to payment. Using market-leading technology, Directo integrates with POS to simplify complex buying decisions and connects pharmacy buyers directly with suppliers. It delivers advanced fulfilment and invoicing, allowing suppliers to re-focus technology and marketing costs that would otherwise be spent operating their own e-commerce sites. www.directoau.com
Contact details:
Sam Bergland
Media Executive, Automic Group