Traditionally, the aesthetics and wellness industry — med spas, dermatologists, plastic surgeons, weight loss clinics, OBGYNS and so on — have leaned on in-person consultations and ad hoc marketing campaigns to drive business. But the pandemic changed the equation. Now, there’s an expectation that these businesses have a presence on major digital channels.
Not every practice has the skills and expertise to build out such presences, however — which is where companies like RepeatMD come in. Founded in 2021, RepeatMD provides turnkey software solutions to operators in the aesthetics and wellness sector.
“RepeatMD’s buyers are small- and medium-sized businesses who want to generate a new revenue stream for their practice,” Phil Sitter, ReadMD’s founder and CEO, told TechCrunch in an email interview. “Our platform allows practitioners to sell their treatments around the clock and enhances the patient buying experience through a mobile app.”
Sitter, a repeat entrepreneur, bootstrapped RepeatMD profitably until late 2022, when the startup closed its seed round. He funded RepeatMD in part with the proceeds from VIPinsiders, a Houston-based food and beverage loyalty and rewards program (Sitter originates from Houston), and a restaurant Sitter owns, the Houston-based brunch and lunch restaurant EggHaus Gourmet.
As Sitter alluded to, RepeatMD builds apps for aesthetics and wellness businesses — apps that let customers sign up and pay for monthly memberships to practices and recurring treatments. Through an integration with Affirm, customers can pay for services in monthly installments if they so choose.
Like many loyalty programs, RepeatMD’s apps also “nudge” customers by sending them notifications with discount offers. Sitter describes these as “Starbucks Rewards-style” experiences.
“The aim is to be the Shopify of the medical industry, helping medical practices sell more of their elective based procedures,” Sitter said. “We’re investing in algorithmic solutions to streamline the practice onboarding process and enhance the patient buying experience, making it easier for patients to discover treatments that fit their goals.”
It appears to be a winning strategy for RepeatMD. The company claims to now service over 3,500 practices and 700,000 users, and RepeatMD’s software-as-a-service revenue increased 130% over the past year, according to Sitter.
That’s piqued investors’ interest. Today, RepeatMD announced that it has raised $40 million in a funding round led by Centana Growth Partners and Full In Partners, with participation from Proof and Mercury Fund, along with a $10 million loan from Silicon Valley Bank. (Sitter says the loan was obtained on “favorable terms.”)
The new capital, which brings RepeatMD’s total raised to $56 million, will be used to grow the startup’s network of partners, build out RepeatMD’s platform and expand the company’s team of around 130 employees to more than 150 by the end of the year, Sitter says.
“RepeatMD has seen massive acceleration of its product during the last 12-months as practices are looking for new ways to generate revenue,” he added. “We bring in new revenue for practices and the rewards program solves patient retention.”