A digital transformation is currently underway in the pharmacy industry, as providers seek solutions to cope with fluctuating supply chains, rising operating costs, a shortage of skilled workers, and the estimated closure of 3000 high street pharmacies by 2024.
Resolving this challenge, Phlo, a Scottish digital pharmacy tech startup that offers patients same-day medication delivery has snapped £9 million in funding. Edinburgh-based Par Equity led the investment round alongside participation from Thairm Bio and Scottish Enterprise. This round follows the £10 million Series A round it raised back in 2023.
The new capital will power significant scaling of the digital healthcare business, and its evolution from a digital pharmacy innovator into a holistic digital healthcare leader. Over the next 12 months, Phlo plans to expand the geographic footprint of its UK operations to provide patients easier access to their growing range of digital healthcare services such as at-home prescription delivery and online delivery of treatments and services. Last year, Phlo acquired the UK arm of Truepill to grow in the UK.
Paul Munn, Managing Partner at Par Equity, commented: “We’re delighted to support Phlo in revolutionising the digital healthcare landscape as it continues on its journey of growth. At Par Equity, we are committed to backing innovative technology companies with high-growth potential in the North of England, Northern Ireland and Scotland, so with the recent launch of our 100M fund, this investment aligns perfectly with our commitments.”
Mark Bamforth, Founder of Thairm Bio, commented: “Phlo are at the forefront of trailblazing innovative digital healthcare solutions that put patients and clinicians at the heart of what they do. We’re delighted to add to the investment we made in 2023, after seeing their growth ambitions deliver impressive results and bring to market new services & offerings in the rapidly expanding UK healthcare sector. On behalf of Thairm Bio, I am proud to bolster our investment in Phlo, and personally, I am excited to see what this next growth chapter will deliver.”
Kerry Sharp, Director of Entrepreneurship and Investment at Scottish Enterprise said: “Phlo is a great example of how SE can support the growth of innovative Scottish companies alongside our private sector investment partners. We remain committed to supporting early-stage technology companies and Phlo fits well with SE’s missions, as a company in the healthcare sector with the potential to scale, create jobs, and bring strong economic benefits to Scotland.”
Digitises patient care and pharmacy
Founded by entrepreneur Nadeem Sarwar in 2019 and headquartered in Glasgow, Scotland, Phlo has a team of over 70. It is at the forefront of innovation and product development in the UK pharmacy sector. Similar to Deliveroo, Phlo is a digital pharmacy that provides secure, real-time, same-day delivery of NHS and private prescriptions when and where you need them.
Digital pharmacy products
The company’s flagship product, Digital Pharmacy, offers same-day NHS and private prescription delivery services in Birmingham and London. The other product is Phlo Connect, an API-driven digital infrastructure platform for healthcare providers. Recently, it launched Phlo Clinic, which provides patients with on-demand access to qualified clinicians who can issue and dispense regulated and approved treatments for direct-to-door delivery.
Notable, the Phlo ecosystem also includes the online women’s consumer health brand – Hello Eve.
Nadeem Sarwar, founder and CEO of Phlo, said: “In the UK tech sector, the investment climate has been both unpredictable and incredibly challenging for the past two years. Despite this, Phlo’s investors have provided the leadership team with a huge vote of confidence in our business model and product ecosystem. This gives additional significance to the close of this fresh investment round, which will unlock huge business and growth opportunities across the entire Phlo network. I’d like to thank Par Equity, Thairm Bio and Scottish Enterprise for their support and belief in Phlo’s vision for the future of healthcare.”
