- 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.
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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.
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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