Summary: NowRx Series B investment has been selected as a “Top Deal” by KingsCrowd. Today, we are reiterating this Top Deal rating, reserved for the top 10% of all deals across the market. If you have questions regarding our deal diligence and selection methodology please reach out to email@example.com.
Since We Last Saw the NowRx Investment…
NowRx Investment Financials Update
Why We (Continue To) Like this Investment
- Ripe Market For Acquisition: When we last covered NowRx, it was rumored that PillPack was nearing acquisition. The company did in fact get acquired by Amazon in June of 2018 for $1B.
- Growth Plans: As of now, NowRx serves only the Bay area, making geographic expansion a natural next step in scaling. By 2023, NowRx plans to expand to 20 territories. This expansion will begin in the Los Angeles and Orange County areas and later move up and down the west coast with the ultimate goal of having 5-10 locations per metropolitan area. The team anticipates a 3x growth rate in its already established Bay Area base with the addition of these new locations due to the ramping up of customer marketing and sales efforts.
- Since its last raise, NowRx has significantly sped up growth in the Bay Area where it was originally established. With each funding round, customer acquisition has increased. In addition, the team has opened two licensed micro-fulfilment centers in the Bay Area. A third facility in Orange County has also been leased. Retention rates are also high, with 86% of users claiming that it is “extremely likely” that they will use NowRx again. High satisfaction rate ground proof-of-concept before continuing geographic expansion.
- Data Aggregation: As with any machine-learning algorithm, the more data the better. NowRx has already acquired a substantial amount of customer data to better its systems. Efficiency and accuracy of these algorithms can only improve with more data. Not to mention, a large database could prove to be quite valuable in the event of a future acquisition, upping price point and overall value of the company.