BuyMed, a Vietnamese startup that wants to fix Southeast Asia’s complicated pharmaceutical distribution networks, revealed today it has actually raised $2.5 million in pre-Series A financing. Financiers include Sequoia Capital India’s Rise early-stage accelerator program, and Genesia Ventures. Returning investor Cocoon Capital likewise took part.
Established in 2018, BuyMed runs Thuocsi.vn, a pharmaceutical distribution platform in Vietnam. Over the past 12 months, the business says it has tripled its yearly income, and now prepares to include new line of product, consisting of cosmetics, medical devices, supplements and medical services, with the objective of ending up being a “one-stop marketplace” for materials needed by healthcare providers in Southeast Asia.
BuyMed validates providers on its platform, improving safety and reducing the threat of medications making its way into the grey market (or informal distribution channels). The startup presently has 700 validated suppliers, distributors and makers on its platform, who serve over 7,000 doctor.
In a press statement, Genesia Ventures basic partner Takahiro Suzuki, said, “There is still a tremendous opportunity for growth and enhancement in Vietnam’s pharmaceutical supply chain and our company believe that BuyMed’s creators have the experience, execution and functional management essential to tackle this problem.”
BuyMed Co-founder and CEO Peter Nguyen previously acted as a specialist for business like Eli Lilly, Roche and Siemens, helping them develop more effective operations and supply chains.
Nguyen told TechCrunch that there are no major multi-brand suppliers in Vietnam, so most pharmaceutical producers and brand names require to establish their own networks. This means the process of getting medications and other pharmaceutical supplies to healthcare providers is highly-fragmented.
There are approximately 200 domestic makers in Vietnam, in addition to imported brand names, and their products are managed by over 3,000 distributors. While about 2% of pharmacies in Vietnam are part of a franchise or chain, the vast bulk are independent. This indicates distributors require to serve over 40,000 independent drug stores and about 5,000 independent clinics.
Nguyen included that fragmentation is similar in numerous other Southeast Asian markets, giving BuyMed an opportunity to broaden across the region.
Thuocsi.vn’s usage has grown over the last 60 days, as more Vietnamese drug stores source from online channels. In response to the COVID-19 pandemic, BuyMed has actually broadened its platform so more of its partners can sell online, and included precaution like regular storage facility and office sanitization and a no-contact drop-off and cash collection system.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.