Directo, the leading independent online B2B marketplace in Australia’s pharmacy sector, has announced a $3 million capital raise to fuel its next growth phase. This comes after the platform successfully onboarded approximately 54% of all Australian pharmacies and more than doubled its revenue over the past two years.
The raise will support Directo in meeting its short-term growth targets, building on its current $40 million annualised revenue run rate. The funds will be used to enhance the platform, expand the supplier and pharmacy user base, extend offerings into allied health services, and develop additional value-add services and revenue-generating activities.
Directo was initially designed to address the unique needs of the fragmented Australian pharmacy industry, which includes many owner-operators, small groups, franchise networks, and diverse suppliers. The proprietary online marketplace digitises the supply chain, reducing costs, boosting efficiency, providing price transparency, and simplifying interactions.
Built on Directo’s enterprise technology platform, the two-sided marketplace integrates seamlessly with pharmacy enterprise solutions. It transforms supply chain management for over 3,000 pharmacy retailers, allowing them to directly order from a database of 180 suppliers and wholesalers, encompassing around 30,000 multi-category pharmacy products, all through a single transaction. The platform is engineered for seamless integration with existing pharmacy IT systems, including finance and POS (point of sale) systems, ensuring a smooth and efficient ordering process.
Directo’s platform stands out with its advanced features and extensive customisation options. The customer portal supports white-labelled solutions and specific shipment rules for sellers and buying groups. The proprietary, custom-built internal admin system integrates bi-directionally with third-party software, including multiple ERPs, CRMs, and POS gateways, providing seamless integration for both small and large companies.
Among the pharmacy chains using the Directo platform are Terry White Chemmart, Direct Chemist Outlet, Chempro, and Good Price Pharmacy Group. Suppliers include McPherson’s, Aero Healthcare, Nude by Nature, The Jojoba Company, Gibsons Eyewear, and Gibson Gifts.
Gavin Upiter, Directo's founder and platform creator, explained, “Directo is integrating the Australian pharmacy wholesale supply chain—a $20 billion annual market—by seamlessly digitising the pharmacy-to-supplier journey. An average pharmacy can have 50 direct suppliers in addition to their main pharmacy wholesaler. We created Directo to simplify this process, saving time and money."
"Our platform is tailored 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. It also aids pharmacies with cash flow management through extended payment terms for all suppliers, supports multi-user accounts, and offers head office functionality. The platform's highly customisable interfaces and advanced reporting metrics provide users with the tailored information they need to enhance operations."
"We’ve seen robust growth over the past two years, doubling revenue each year to achieve a $40 million annualised revenue run rate 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 peripheral task management, phone and analytics tools, and expanding our workforce to onboard more pharmacies and suppliers and increase platform usage."
Directo's strategic growth and continued innovation position it as a critical player in the pharmacy sector, poised to revolutionise the industry through digital transformation and enhanced operational efficiency.