Directo secures AUD $2 million to boost pharmacy marketplace

Directo, an independent online B2B marketplace for the pharmacy sector based in Melbourne, Australia, has secured $2 million through a placement of new fully paid ordinary shares. The investment comes from sophisticated investors and is intended to support the company’s forthcoming expansion and growth initiatives.

The newly raised capital will allow Directo to broaden its supplier and pharmacy user base, as well as further develop value-added services and revenue-generating projects, according to a statement from the company. The company has recently reported a record trading quarter ending June 2024 and a record trading month in July at the start of the new financial year.

The platform, built on Directo’s enterprise technology, integrates with existing pharmacy IT, finance, and POS systems. It currently supports over 3,000 pharmacy retailers and offers a database of more than 200 suppliers, featuring roughly 45,000 multi-category pharmacy products. The marketplace aims to facilitate a smooth and efficient ordering process for pharmacies across Australia.

Directo's interface is customisable and includes advanced reporting metrics to support multi-user accounts and head office functionalities. Its customer portal offers white-labelled solutions along with specific shipment rules designed for sellers and buying groups. This caters to the unique needs of Australia’s fragmented pharmacy industry, which includes a mix of owner-operators, small groups, franchise networks, and large multi-channel corporates.

Commenting on the successful capital raise, Directo Founder and Managing Director, Gavin Upiter, said, “The strong support from existing investors, including pharmacy owners, in this capital raise is an endorsement of Directo and places our company in a strong position to accelerate the growth of the business. The company thanks its investors for their continued confidence and commitment, which enables us to continue to drive innovation and to deliver even greater value to the Australian pharmacy sector.”

He added, “Our platform is transforming the Australian pharmacy wholesale supply chain, a $20 billion annual market, by digitising the pharmacy-to-supplier journey. With the additional funds raised, we are well placed to onboard more pharmacies and suppliers and integrate additional AI-driven solutions into our platform.”

According to Upiter, the company has experienced rapid growth over the past two years, with revenues doubling each year. “We are now running at $40 million annualised revenue and have onboarded over half the nation’s pharmacies. We finished the June 2024 quarter with record trading results, which continued into the new financial year with a record monthly performance in July, reinforcing our strong market position,” he said.

Directo aims to assist retail pharmacies and their suppliers in reducing administrative efforts, improving cash flow management, and streamlining processes through electronic invoicing, consolidating credits, payments, and managing supply and invoicing queries.

In addition to the recent capital raise, Directo is planning to offer further investment opportunities. The company intends to introduce an investment incentive programme targeted at pharmacy group customers and other platform users. Expressions of interest for future investment opportunities can be submitted through Directo’s contact form on their website.