Company Name: Directo
Announcement Date: 01/04/2022
Announcement Category: Investment
Directo is set to scale the first online B2B marketplace for the pharmacy sector in Australia through a $2.3 million capital injection from technology investors including Investible, Australia’s leading seed investment group.
The networked two-sided online marketplace is built on Directo’s proprietary enterprise technology platform that is configured for, and integrates into, pharmacy enterprise solutions. It transforms the management and interactions of the supply chain for over 500 pharmacies by connecting them directly with more than 80 suppliers and wholesalers on about 30,000 products.
Gavin Upiter, founder of Directo and creator of the platform said, “The Australian pharmacy wholesale supply chain is a $20 billion-dollar annual market, so we see this platform growing exponentially over the next few years.
The $2.3 million investment from key technology investors and Investible will upgrade the platform to ensure itcan scale to manage this
growth. This includes more AI and introducing other value-added services for both buyers and sellers.
Daniel Veytsblit , Investment Director at Investible said, “We have followed Gavin and Directo’s journey over two years, and are excited to be partnering with them for the next phase of growth. It is clear that Directo solves a pain point for suppliers, wholesalers and pharmacies. The platform can become integral in the sector, bringing significant efficiencies and opportunities to all stakeholders.”
The 6,800-strong pharmacy sector in Australia has always been very fragmented with many owner-operators, small groups, franchise networks and different suppliers. An average pharmacy can have 50 direct suppliers over and above those that are available from the main pharmacy wholesalers. This fragmentation and complexity of supply channels means the sector has been left behind when it comes to refining the back-end ordering, stock management and distribution of products.
The key to Directo’s success is in the platform’s ability to add value for all participants, reducing costs in the supply chain, improving efficiency, providing price transparency and simplifying interactions between suppliers and pharmacies. The platform seamlessly integrates with all buyer POS as well as seller’s systems making it easy for participants to get onboard.
Mr Upiter added, “The pharmacy sector in Australia had additional challenges in its supply chain compared to other sectors. These include little corporate ownership, different buying groups and compliance levels, rebates structures and government subsidies. “Our growth path has accelerated recently as we have worked hard over the last few years to build relationships with pharmacy groups and are now seeing ‘flywheel effects’ resulting in organic customer acquisition. An increasing number of pharmacies who see the benefits of being involved are now encouraging suppliers that they buy from. These suppliers, after they experience the advantages it brings, are now encouraging other pharmacies they service to join the Directo platform to unlock supply chain efficiencies.”
Half of the ten largest private B2B marketplaces in the US have the same business model as Directo - the targeting of retailers as buyers with a range of supplies such as wholesalers or manufacturers and even brands themselves. The Directo business model has been proven in several other markets. We have added our sector specific expertise to ensure we address the historical challenges of the pharmacy sector in this country.”
NOTE: THIS ANNOUNCEMENT WAS MADE BY TECHBOARD ON BEHALF OF DIRECTO.
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Announcement URL: https://www.directoau.com/
AUSTRALIA'S ONLY INDEPENDENT B2B E-COMMERCE PHARMACY MARKETPLACE
Delivering enhanced customer experiences & cost savings, while helping build stronger relationships between pharmacies and their suppliers.
Go to Company Profile for: Directo
Announcement Contact: [email protected]