Pharmapacks Raises $32.5 Million to Fund Expansion, Automation and Talent Acquisition
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."
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