Capsule, a New York-based pharmacy delivery startup, has raised $20 million from Thrive Capital, founder Eric Kinariwala told TechCrunch editor Jordan Crook on stage today at Disrupt NY.
The raise was first noted in the Wall Street Journal but Kinariwala came on stage today during our Founders Spotlight portion of the event to chat about his plans to cut out third-parties and streamline the supply chain to lower costs and bring customers better delivery options.
The company only delivers to the New York area for now but it will have to figure out how to take on entrenched companies like ExpressScripts, the main automated prescription delivery incumbent as it continues to scale. Though Capsule says it would like to work with rather than compete against these services, which also deliver from the pharmacy to your door.
It will also face competition in the tech space. Like its competitors PillPack and Blink Health, Capsule has built its own pharmacy. However, instead of focusing on brick-and-mortar, these startups offer tech services like live chat and an online platform to deal with orders.
Thrive Capital led the round, with participation from Sound Ventures and Virgin Group.