Phlo, Glasgow digital pharmacy, raises £10m

Glasgow-based digital pharmacy Phlo has closed a £10 million Series A round led by family office Thairm Bio.

The funds will be used to expand the reach of Phlo Digital Pharmacy and to scale Phlo Connect, the digital infrastructure platform for healthcare providers.

This announcement comes as momentum behind digital transformation mounts in the pharmacy sector, powered by providers seeking solutions that will equip them to cope with supply chain fluctuations, spiralling operating costs, record workforce shortages, and the predicted closure of up to 3,000 high street pharmacy branches by 2024.

Phlo’s Series A round is a combination of equity investment and the conversion of existing loan notes and follows the £2 million raised by Phlo in 2020 in the third largest recorded healthtech Crowdfunding campaign in Europe.

The round is led by Thairm Bio alongside support from Scottish Enterprise and a number of other high-profile angel investors.

Thairm Bio founder Mark Bamforth said: “Thairm Bio is delighted to lead this investment round, in partnership with a dedicated group of investors, and to support Phlo in their continued expansion across the UK.

“Phlo’s drive and determination to improve patient access and healthcare outcomes at this pivotal moment for the pharmacy sector is impressive.

“Phlo’s dedication to building innovative digital solutions that put patients and clinicians at the heart of what they do is key to driving positive change in the sector, empowering patients and healthcare providers.

“On behalf of Thairm Bio, I am proud to support Phlo and personally excited to see what the team achieves in the next stage of their journey.”

Kerry Sharp, Director of Entrepreneurship and Investment at Scottish Enterprise, said: “Phlo is a fantastic example of a growing innovative company that is helping patients and healthcare providers through its technology.

“With Scottish Enterprise investment, the company can scale up operations and expand its services into new markets.”

Phlo was founded by entrepreneur Nadeem Sarwar and is headquartered in Glasgow. The firm employs more than 70 people.

Sarwar said: “I would like to thank our existing and new investors for supporting Phlo’s mission as we enter into our next stage of growth.

“The investment raised will help support our expansion across the UK and allow us to continue developing our Phlo Digital Pharmacy and Phlo Connect offering to improve healthcare outcomes.

“This round of investment is particularly crucial in helping us scale our offering and realising our vision of establishing Phlo as the market leader in the delivery of next-generation digital pharmacy services right across the UK.

“We have a very busy roadmap ahead and some incredibly exciting opportunities to take advantage of in 2023 and beyond”.