Online chemist secures multi-million-pound investment

Leeds-headquartered Pharmacy2U, Britain’s biggest online pharmacy, has raised £40m from investors including G Square Capital and the BGF.

The firm will use the money to fund the growth of its online repeat prescription service, as it tries to bring the same online disruption which has shaken the retail industry to the pharmacy sector.

Former Boots manager Ted Smith and G Square partner will join the board as non-executive chairman as part of the deal, after the departure of former HBOS banker and investor Andy Hornby.

G Square led the deal, which makes it the majority shareholder in the firm.  BGF’s participation in the fundraising follows a £7m investment in May 2017.

Mark Livingstone, Pharmacy2U chief executive, said the firm had enjoyed a phenomenal period of high growth.

Laurent Ganem, founder and chief executive of G Square, said the private equity firm was drawn to Pharmacy2U’s fast growth, momentum in the sector, and customer experience.

He added: “We believe that its technology and services participate in positively disrupting the healthcare industry in the UK.”