DivvyDose

North America, Healthcare

Healthcare Solutions To Make Prescriptions Manageable

"The PFG team really understands high-growth companies, and the ebbs and flows. The capital allowed us to build our team, our customer base and design a proprietary pharmacy operating system that led to the interest of major players in the industry."

- Arvind Movva, Founder & CEO

divvyDOSE is a specialty pharmacy business located near Chicago, Illinois with an innovative approach to help patients improve regiment adherence and compliance. Despite fantastic growth projections, divvyDose presented funding challenges for any commercial bank – a small enterprise, not venture-backed, and without meaningful Accounts Receivable because customers pay with credit cards.

THE POTENTIAL FOR GROWTH AND A SAVVY MANAGEMENT TEAM

Although divvyDOSE was small on the scale of those PFG usually works with, the team saw a company more than doubling revenues annually with a sticky recurring revenue model, a high level of customer diversity, and proposed debt coming in alongside substantial insider equity to capitalize on the secular tailwinds of the business. PFG was further impressed by the divvyDOSE management team led by a CEO that had previously built and sold a healthcare service business to private equity—an experience through which he recognized the unique market opportunity for his next venture.

CREATIVE FUNDING SOLVES COMBINED WITH A SMART GAMEPLAN

PFG was able to structure a Senior Secured Term Loan alongside an equity round led by the Founder / CEO, company insiders and a family office. The capital raising funded the majority of the company’s cash needs to achieve profitability and PFG’s initial debt transactions functioned as a cushion to the operating plan, and follow-on financings demonstrated balance sheet strength as the company talked to investor candidates. 

Two years of growth and development and another round of equity financing brought the company vastly improved unit economics. With their margins positive and improving, and IP value through in-house built software increasing, divvyDOSE was acquired in late 2020 by UnitedHealth Group.

No compensation was received by any individual or company for their views and thoughts expressed. The individuals or companies are not investment advisory clients of PFG.

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