Pharmapacks Raises $32.5 Million to Fund Expansion, Automation and Talent Acquisition
Pharmapacks today announced that it has raised $32.5 million in a strategic round led by CPG company RB. Additional investments were made by McKesson Ventures, Sealed Air, and The Emerson Group. Pharmapacks also sold a minority stake as part of the round for an undisclosed amount.
Pharmapacks is a leading e-commerce company that sells common consumer goods and helps emerging brands launch through its e-commerce platform and consumer base. The funding will be used to expand the Pharmapacks team and warehouse space, improve its automated technology, and expand the company’s inventory and delivery range.
“We are excited to see Pharmapacks growing at a rapid pace, especially in an ecosystem monopolized by big e-commerce players,” said Pharmapacks CEO Andrew Vagenas. He continued, “The fundraising, together with the associated partnerships, will enable us to scale operations both domestically and internationally as well as serve our customers in an even more efficient and cost-effective manner, while expanding the number of brands we can support with our unique logistics / e-distribution capabilities.”
Tom Rodgers, SVP and Managing Director of McKesson Ventures also commented on the investment, saying, “Pharmapacks is optimizing the direct-to-consumer channel on behalf of health care brands, making the buying process more convenient and price effective for both the consumer and their supplier partners.” He continued, “With this infusion of cash, we are excited to see the operations scale what is already an industry leading marketplace, and continue to build out a competitive platform that complements a brand’s omnichannel strategy.”
Pharmapacks was founded seven years ago as a family-owned retail pharmacy. It was founded by Vagenas and business partner Brad Tramunti. The pair started selling health and beauty products online. Along with managing members Adam Berkowitz, James Mastronardi, and Jonathan Webb, the team added e-commerce, logistics, and fulfillment software. As the company expanded, it opened its first warehouse in Queens, New York.
Pharmapacks’ catalog consists of 28,000 items. It processes and ships more than 30,000 orders per day to customers all across the United States and Canada.