Success Crafted

Revolutionizing Pharmacy: The Innovative Approach of Capsule

Capsule: Revolutionizing the Pharmacy Industry

Are you tired of waiting in long lines just to pick up your prescriptions? Do you find the process of getting your medication cumbersome and inefficient?

If so, Capsule, an innovative online pharmacy, may be the solution to your problems. In this article, we will explore the services offered by Capsule, as well as its history, from its launch to its recent expansion and partnerships.

Overview of Capsule

Capsule is an online pharmacy that offers a more convenient and streamlined approach to prescription delivery. By using Capsule, you can have your prescriptions delivered straight to your doorstep.

This eliminates the need for you to physically go to a pharmacy, which can be time-consuming and inconvenient. To use Capsule’s services, you must first register on their website.

During registration, you will be prompted to provide your address and payment information. Once you have registered, you can start ordering your prescriptions through Capsule’s website or app.

Capsule’s website and app are user-friendly and easy to navigate. You simply select the medication you need, and Capsule takes care of the rest.

Capsule also coordinates with doctors and insurance providers to ensure that you receive the right medication at the right time. Capsule’s communication with doctors also ensures that you receive refills on time.

Additionally, Capsule works with insurance providers to ensure that your medication is covered by your insurance plan. If you are ever in NYC, Capsule also has a physical location.

Capsule’s brick-and-mortar location allows you to pick up your prescriptions in-person if you prefer.

History of Capsule

Eric Kinariwala, the founder and CEO of Capsule, was inspired to create the online pharmacy after he had a personal experience with an inefficient and outdated pharmacy system. Kinariwala was also influenced by his background in investment banking.

He saw an opportunity to disrupt the pharmacy industry by creating a more efficient and streamlined approach. Capsule launched in May 2016, with Thrive Capital leading its seed round of funding.

Since then, Capsule has continued to expand and form partnerships with other companies in the healthcare industry. In 2018, Capsule raised $50 million in a Series B funding round.

In 2019, Capsule formed a partnership with Hims & Hers, a telemedicine startup. This partnership allowed Capsule to expand its services to include more than just prescription medications.

Additionally, Capsule partnered with Ginger, a mental health company, in 2020. Capsule’s growth has also accelerated amidst the COVID-19 pandemic.

Capsule has reported a 3x increase in demand for their services since the start of the pandemic. This increase in demand has resulted in Capsule being valued at over $1 billion, making it a unicorn company.

Capsule recently raised $300 million in a funding round led by Durable Capital Partners and Baillie Gifford, which will be used to further expand the pharmacy’s services.


Capsule is changing the pharmacy industry by providing a more convenient and efficient way to obtain prescription medication. With its user-friendly website and app, coordination with doctors and insurance providers, and physical location in NYC, Capsule makes obtaining prescription medication easier than ever before.

Capsule’s founder, Eric Kinariwala, saw an opportunity to disrupt the outdated pharmacy industry by creating a more efficient system, and that is exactly what Capsule has done. Capsule’s recent expansion and partnerships, as well as its unicorn status, are a testament to its success and continued growth.

Capsule’s Business Model

Capsule’s innovative approach to the pharmacy industry includes utilizing an online-based business model that offers a more convenient and efficient approach to prescription delivery. By connecting customers with healthcare providers electronically and streamlining the prescription delivery process, Capsule has disrupted the traditional pharmacy sales model.

Revenue and Margins in Pharmacy Sales

The sales price of prescription medication and gross margins are two critical factors in the pharmacy industry’s revenue model. Capsule operates with a higher gross margin than the brick-and-mortar pharmacies, which rely on market share and lower gross margins to drive their online sales.

As a result, Capsule’s gross margins are approximately twice the industry standard, at around 35%. The additional gross margin percentage is rooted in the company’s ability to automate systems and reduce the need for intermediate steps in the sales process.

Capsule’s online sales model also provides opportunities for cross-selling other healthcare products, which boosts revenue and margins. The online nature of the platform allows for personalized recommendations and targeted promotions that the customer may accept.

These additional products supplement the revenue streams in Capsule’s primarily prescription-focused business model.

Advantages of Online Operations

Capsule’s online-based business model provides several advantages over traditional brick-and-mortar pharmacy chains. It provides automation possibilities for various steps in the customer’s process, including filling prescriptions, managing doctor coordination and payments, and enabling customer communications.

Additionally, the online nature of the model enables Capsule to tap into an ever-growing sector of younger, more tech-savvy customers that typically prefer low-scale, highly efficient mobile or desktop web interfaces. Capsule’s reliance on online orders also requires the company to provide a trustworthy online platform that offers customer service that is highly responsive to inquiries and customer service calls.

The company has invested heavily in providing reliable customer service and building trust through transparent communication and standardized processes. This strategy has resulted in higher customer satisfaction levels and repeat business that supports the bottom line.

Coordination with Insurance Providers

Coordination with insurance providers is a crucial consideration for online prescription platforms like Capsule. Insurance providers frequently offer the convenience of electronic payment systems with strict guidelines for usage and customer authentication processes that Capsule leverages.

The company uses APIs (application programming interfaces) to integrate with insurance payments and providers directly, seamlessly delivering updated and accurate information. These participation models allow Capsule to process insurance claims directly- a time-intensive and usually difficult process that brick-and-mortar pharmacies struggle to achieve.

Capsule’s cooperation with insurance providers also means it can reinvest in its core operations and expand into other services areas, such as telehealth, managing chronic conditions, and integration with virtual insurance providers.

Enhancements for Doctor and Patient Experiences

Capsule has continued to work on increasing customer and healthcare provider satisfaction by offering a range of enhancements to its service. These enhancements tailor potential problems with refilling prescriptions, alternative medication options, and offering telehealth services.

Capsule’s platform’s design enables users to choose mandatory refill preferences based on personal preferences, health goals, and previous medication use. The platform also permits patients to participate in alternative medication options aimed at their condition or recommend doctors they prefer to work with.

Capsule has also developed a unique electronic health tracking system that enables enrolled users to monitor personal health data in real-time. The platform assists healthcare providers in managing their patients’ health and wishes more effectively.

Funding and Valuation of Capsule

Capsule has raised over $570 million in funding since its initial seed in 2016. Its equity funding amounts to over $460 million, representing a broad range of investors, including (but not limited to) Thrive Capital, TCV, and Durable Capital Partners.

The company’s valuation has thus risen to $1 billion since the series D funding round, which included $200 million. Capsule has opted to keep private ownership under one umbrella, with intentional assumptions around avoiding public disclosure-related issues.

The ownership breakdown remains private, with information regarding how the new funds will be allocated to new capital expenses (that may or may not relate to further changing its business model) unknown to the general public. In


Capsule’s business model, which revolves around an online platform, has allowed it to disrupt the traditional pharmacy industry.

Their higher gross margins, coordinated insurance handling, doctor/patient assistance, plus the enhanced virtual experience, have allowed Capsule to grow substantially since its initial seed in 2016, with the most recent Series D funding round taking the company’s valuation to $1 billion. The online-based business model employed by Capsule offers a more convenient and efficient approach to prescription delivery, representing the future for drugstore purchases.

Capsule’s online-based business model offers a more convenient and efficient approach to prescription delivery, which has disrupted the traditional pharmacy industry. Capsule’s higher gross margins, coordinated insurance handling, doctor-patient assistance, and enhanced virtual experience have allowed its valuation to reach $1 billion.

These advantages in its business model and continued improvements in its services have resulted in Capsule’s substantial growth since its launch in 2016. Capsule’s innovative approach serves as a model for how technology can revolutionize traditional industries and offers consumers a more convenient and efficient way to access prescription medication.

Popular Posts