- Buymed’s revenue soared, but losses loomed large.
- Startup expanded internationally but tripled operating losses.
- Cash flow challenges risked exhausting reserves within year.
Vietnamese B2B pharmaceutical platform Buymed (Thuocsi.vn) reported a 2x year-on-year growth in revenue for 2022, hitting US$76.4 million.
Cash flow concerns on the horizon
The startup, having secured US$63.5 million over four funding rounds, expanded its marketplace model to Cambodia and Thailand.
However, operating losses also tripled compared to the previous year, reaching US$15.3 million, primarily due to increased administrative expenses and general provisions.
Buymed faced significant cash flow challenges in 2022. Despite a decrease in cash used for operating activities, it still surpassed the cash reserves reported on the firm’s balance sheet.
This suggests that without a change in financial strategy, Buymed risked exhausting its cash reserves within the year. CEO Hoang Nguyen declined to comment on the matter.
Navigating a competitive landscape
Buymed’s business in Vietnam heavily relies on the survival of its main customers – independent drug stores – amid growing competition from large drugstore chains like Long Chau and An Khang.
Recognizing the need to diversify, the startup has expanded to B2B2C franchising, helping drug stores boost sales through tech-enabled inventory management and fulfillment services.
To read the original article: https://www.techinasia.com/buymeds-2022-revenue-hit-764m-losses-expanded-rising-competition
