SoftBank Tops Most Recent Alto Pharmacy Financing
In a piece of technology news, SoftBank‘s second Vision Fund has conducted a new round of funding for Silicon Valley-based drug delivery firm Alto Pharmacy.
According to two individuals familiar with the development, the financing valued at over $1 billion.
A source also found the information from Delaware State filings.
Moreover, the sources said that SoftBank’s Vision Fund II provided a majority of the funding round that amount to about $250 million.
At one point, the fund was to invest as much as $300 million.
On the other side, it will eventually decide to limit its exposure, they said.
Other remaining investors involving Greenoaks Capital, along with Jackson Square Ventures also took part in the Series D round.
Meanwhile, a digital pharmacy known as Alto that provides prescriptions to patients in a number of cities in California, Nevada, Colorado, and Washington is anticipated to announce the deal next week.
The Alto Pharmacy investment goes at a difficult time for SoftBank.
A number of its portfolio firms have battled in recent months, most notably WeWork. The said company canceled its preliminary public offering last year.
In addition, it needed an over $10 billion bailout from SoftBank to remain afloat.
At the time of SoftBank launching the first Vision Fund in 2017, both assets have typically written out checks. They are all fluctuating from $100 million to several billion dollars.
So far, its biggest bets have been on office-sharing firm WeWork. To add, with the ride-hailing giant Uber Technologies along with Chinese ride-hailing firm Didi Chuxing.
Over the past few years, Venture-backed online pharmacies have been confronting traditional pharmacy chains.
The challenge was along with Alto’s competitors that consist of Blink Health and PillPack that was acquired by Amazon in 2018.
Foundation of Alto
Elsewhere, Alto started founding in 2015. It was when ScriptDash rebranded itself in 2017 after it raised $23 million from Greenoaks Capital, Jackson Square Ventures, and other investors.
With the latest series, Alto has so far grown over $350 million.
The funding for Alto that has moved further than its delivery roots now offers doctors and clinics a technology platform.
In addition, the bid is to fill prescriptions. It is one of the first substantial investments for SoftBank’s Vision Fund II, for which the Japanese tech giant persists to seek funding.
Alto Pharmacy did not instantly respond to requests for comment. However, SoftBank also declined for a statement.
Lastly, valuations at the first $100-billion Vision Fund’s slumping portfolio have come under heightened scrutiny. It was because investors have doubted its founder and chief executive Masayoshi Son’s outsized bets on cash-burning, technology startups.
