Pharmapacks Receives $32.5M
ISLANDIA, NY, Pharmapacks today announced it has raised $32.5 million by selling a minority stake at an undisclosed valuation.
Pharmapacks, a leading e-commerce company with a proprietary technology platform that empowers brands to reach millions of consumers with a complete and cost-effective logistics, fulfillment, marketing and sales solution, today announced it has raised $32.5 million by selling a minority stake at an undisclosed valuation. The strategic round was led by multinational CPG company RB (LSE: RB) with additional investments from McKesson Ventures, Sealed Air (NYSE: SEE) and The Emerson Group.
Pharmapacks sells both direct-to-consumer through leading online marketplaces including Amazon, Walmart.com, and eBay among others, as well as on Pharmapacks.com. In addition to selling well-known everyday consumer goods, Pharmapacks serves as a "launch pad" for emerging brands by giving carefully selected new Millennial and Generation Z brands access to the Pharmapacks e-commerce platform and consumer base. This enables brands to focus on product research and development, while Pharmapacks strategically sets competitive price points and builds a connection between the consumer and the brand.
"We are excited to see Pharmapacks growing at a rapid pace, especially in an ecosystem monopolized by big e-commerce players," said Andrew Vagenas, CEO of Pharmapacks. "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."
Pharmapacks will use the funding to grow its 350 person team by 20 percent and scale its current 140,000 square foot warehouse in Islandia, New York. Additionally, the funding will enable Pharmapacks to drive its profitability by advancing its automated technology and to expand its inventory levels and delivery reach from the U.S. and Canada to Europe, Asia and beyond.
"With ecommerce becoming a leading driver of growth for our brands like Enfamil, Lysol, Mucinex and Airborne, we are excited to partner and invest with Pharmapacks," said Nitish Kapoor, EVP, North America, RB. "We believe that this partnership will help both companies serve our online shoppers better and grow at an even faster pace."
Unlike many third-party retailers, Pharmapacks has an in-house technology team dedicated to building automated assistance tools, which are an integral part of the company's streamlined process and scaling success. Pharmapacks also has a partnership with Sealed Air, whose I-Pack┬® system uses laser technology to measure the contents of a package then custom fits each box to that size, removing excess air and wasted space. This drastically cuts down on shipping expenses and has enabled Pharmapacks to expand throughput, giving consumers a less than 24-hour turnaround time for order deployment.
"In addition to enhancing the consumer experience upon delivery, Sealed Air and Pharmapacks are having a positive impact on the environment by eliminating excess packaging waste, and nearly eliminating the risk of damage during transit," said Ken Chrisman, President of Sealed Air's Product Care division. "Pharmapacks shares our commitment to use technology and data to solve fulfillment complexities. Through the upcoming expansion, we will continue to work with Pharmapacks to provide reliable and sustainable packaging solutions that address today's social and environmental challenges."
"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," said Tom Rodgers, SVP and Managing Director of McKesson Ventures. "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."
"The Emerson Group is pleased to partner with Pharmapacks. With a shared commitment to excellence in providing our clients industry-leading capabilities and cutting-edge logistics technology, we can deliver the efficiency that is so vital to success in these challenging retail times," said Scott Emerson, CEO of The Emerson Group. "Our alignment with Pharmapacks will help us deliver increased consumer exposure to our client brands resulting in the brand growth which is the core of our corporate mission."
Pharmapacks was founded seven years ago in a Bronx, NY based mom-and-pop retail pharmacy. After opening its first warehouse in Queens, Managing Members Andrew Vagenas, Adam Berkowitz, Brad Tramunti, James Mastronardi and Jonathan Webb enhanced the businesses by building e-commerce, logistics and fulfillment software meant to be easily integrated into partners' existing sales platforms including Amazon, Walmart.com and eBay. Now the company's catalog consists of 28,000 unique items and processes and ships over 30,000 orders per day to all 50 states in the U.S. and Canada.
Pharmapacks is a leading e-commerce tech company that empowers brands with a complete and cost-effective logistics, fulfillment, marketing and sales solution. It offers a robust catalog of health, beauty, personal care and household products sold across top online marketplaces as well as directly to consumers on pharmapacks.com. In addition to being one of Amazon's largest third-party retailers, it maintains a 100 percent customer satisfaction rating. For more information, visit www.pharmapacks.com.
RB is the global leading consumer health, hygiene and home company. Driven by a purpose to build healthier lives and happier homes, RB has operations in over 60 countries. From the foundations of wellness and infant nutrition, to the fundamentals of a hygienic home, our global brands help people live healthier, happier lives. RB has world leading Powerbrands which include household names such as Enfamil, Nutramigen, Mucinex, Durex, Clearasil, Lysol, Finish, Woolite and Air Wick. RB's unique culture is at the heart of its success. Its drive to achieve, passion to outperform and commitment to quality and scientific excellence are manifested in the work of over 40,000 RB employees worldwide. Visit www.rb.com to learn more.
About McKesson Ventures
McKesson Ventures is the venture capital arm of McKesson Corporation (NYSE: MCK) specializing in early and growth stage companies. McKesson Ventures targets companies that both catalyze and benefit from the key changes taking place in the U.S. health care landscape. McKesson Corporation, currently ranked 6th on the FORTUNE 500, is a health care services and information technology company dedicated to making the business of health care run better. We work with payers, hospitals, physician offices, pharmacies, pharmaceutical companies, and others across the spectrum of care to build healthier organizations that help deliver better care to patients in every setting. Visit www.mckessonventures.com to learn more.
About Sealed Air
Sealed Air Corporation is a knowledge-based company focused on packaging solutions that help our customers achieve their sustainability goals in the face of today's biggest social and environmental challenges. Our portfolio of widely recognized brands, including Cryovac┬® brand food packaging solutions and Bubble Wrap┬® brand cushioning, enable a safer and less wasteful food supply chain and protect valuable goods shipped around the world. Sealed Air generated $4.5 billion in sales in 2017 and has approximately 15,000 employees who serve customers in 122 countries. To learn more, visit www.sealedair.com.
About The Emerson Group
The Emerson Group has been facilitating transition to the changing consumer retail economy for over 20 years. With a field sales infrastructure of 10 regional offices, Emerson manages CPG brands in excess of $3.8 billion, and holds equity positions with small and medium-size brands. It also operates internationally, providing partners in the European, South American and Asian Pacific regions with the expertise and infrastructure necessary to successfully operate in the U.S. market. The company offers clients unparalleled retail relationships, advanced turnkey logistics, comprehensive marketplace analytics, and access to equity markets. Emerson Logistics, the #5 HBC supplier to the trade, is an efficient turnkey logistics solution, delivering on-time and complete shipments, single purchase orders for multiple products, single point of contact for multiple vendors, and reduced processing costs. Emerson Marketing partners with industry-leading experts to leverage data and shopper insights for clients, with up-to-the-minute category and brand information. The Emerson organization's resources and expertise has been expanded into Canada with our recent merger with McCaughey Consumer Products Management, Inc., a leading Canadian sales organization offering national account management, brand management, inventory management, accounts receivable and quality control. To learn more visit www.emersongroup.com.
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