Digital healthcare platform has raised $5 million in a follow-up investment from ASX-listed venture capital fund Bailador Technology Investments.
Bailador (ASX:BTI) has already put $16.6 million into InstantScripts, and its latest capital injection has defied the current trend of plummeting startup valuations, with the VC saying the valuation at the latest round has resulted in a 10% ($ 1.7 million or $0.01 per share) increase the company’s valuation.
Developer and entrepreneur Maxim Shklyar and Melbourne GP and financier Dr Asher Freilich co-founded InstantScripts after meeting at a networking event in 2018.
“Asher brought me his idea for an online healthcare service. I offered to build a prototype for him. Within three months we launched InstantScripts,” says Shklyar.
They started the company with $50,000 from Dr. Freilich’s savings and invested almost all of their profits back into InstantScripts in their first year. In 2021, they acquired a $10.9 million investment from a consortium of investors led by specialist investment management firm Perennial.
Belarus-born Shklyar, the startup’s Chief Technology and Product Officer, originally built the platform on his own, aiming to capture the large patient market that only a primary care physician sees for prescriptions.
InstantScripts empowers people to access high-quality medical care and routine prescription medications in a safe, secure, and clinically sound manner. It initially offered prescriptions through its website or app, which are sent to the patient’s local pharmacy and can be picked up or delivered. In 2020, they expanded the service to offer telehealth consultations and pathology.
In January of this year, it evolved into The Green Doc: a telehealth cannabis service.
Other innovations include InstantCosmetics, which provides supervision and training to cosmetic nurses in more than 700 cosmetic clinics, and medical tests for specific problems, including a PCOS pathology referral test, vitamin deficiency tests for patients with sleep problems, tests to determine the cause of baldness, and HIV. Prevent, a prescription for PrEP, a preventive HIV drug.
InstantScripts’ revenue has grown more than 120% year over year and by 2022 the company has grown from 350,000 users at the start of the year to over 500,000 registered users on the platform, with more than 40,000 prescriptions filled each month .
Bailador co-founder and managing partner Paul Wilson said digital health is a rapidly developing area that appealed to the fund.
“InstantScripts is leading the way by providing a solution that is widely embraced by consumers, and to responsibly increase the efficiency of the health system in Australia,” he said.
“It is an excellent company in which Bailador is proud to increase its shareholding.”