Investing in Capsule – A Smarter, Simpler Pharmacy
Let’s face it – picking up a prescription at the pharmacy is a grim experience. You have to travel to a pharmacy, wait in line and overhear personal information about the customer at the register, and then share your own personal data. To make matters worse, your prescription is out of stock or requires more time (that frankly, you don’t have) to fill. Consumers aren’t the only ones who suffer: 25% of doctors’ time is spent on pharmacy-related issues that would otherwise go to spending more time with their patients.
Our health is precious and so is our time and privacy. By re-imagining the consumer experience from the ground up, Capsule has built a better, more delightful experience for all constituents. Capsule offers free delivery wherever you are within two hours, the ability to chat, text, or call a pharmacist, and a simple, easy to use app that allows you to manage all your medications on your phone. Bonus: Capsule also handles everything with your insurance.
To date, Capsule has had incredible traction and growth in New York City, where the brand is ubiquitous and the product is loved. We believe the pain point that exists in NYC is also felt across the country and strongly believe that the pharmacy market will undergo a secular shift from offline to online (currently under 1%), similar to furniture (currently 17% online) and grocery (3% online). This secular shift will have a major impact on the $350B US addressable market (i.e. $350B pain point for consumers!), and Capsule is well-positioned to win it by taking its playbook honed in NYC to major cities across the US.
M13 is committed to backing companies that improve the daily lives of consumers through technology, and Capsule is doing exactly that. We are so excited to partner with Eric Kinariwala and his team and join fellow investors TCV, Thrive Capital, Glade Brook Capital Partners and Virgin Group to scale their vision.