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Business Models Business Operations

How Does Capsule Make Money (Business and Revenue Model)

The Capsule business model

Capsule logo
Here’s what you should know:
  • What is Capsule, and how does Capsule work?
  • How does Capsule make money?
  • Selling Prescription Medications
  • Capsule profit and revenue
  • What is the Capsule business and revenue model?
  • Capsule funding, net worth, and valuation
  • Capsule subsidiaries, acquisitions, and exits

How does Capsule Pharmacy make money and how is it free to use? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Capsule business and revenue model, how much money Capsule Pharmacy makes per year, and how Capsule works.

What is Capsule, and how does Capsule work?

Capsule is an online tech-based healthcare pharmacy that delivers customers’ medications to them for free.

Founded in 2016 by Eric Kinariwala, Capsule currently operates in 13 cities across the U.S. and anticipates they will have the ability to serve and reach 100 million Americans in the near future, according to Founder and CEO, Eric Kinariwala.

So, how does Capsule Pharmacy work? To start using Capsule, all you need to do is simply tell your doctor to send your prescription to Capsule when they ask “what pharmacy would you like them to send it to?” And you don’t need a Capsule account before they prescribe it.

After Capsule has your prescription, they will text you to schedule your free delivery whenever and wherever you need it. Just make sure someone is around to receive and sign for your medication when it arrives.

Make sure you live in one of the cities Capsule currently is operational in. You can see the full list of Capsule’s locations here.

Some of Capsule’s competitors include GoodRx, SingleCare, and other pharmacies that are working to slash prescription prices.

Capsule App in Apple App Store | Capsule Business Model | How Does Capsule Make Money? | How Does Capsule Work?
Source: Apple App Store | Capsule

How does Capsule make money?

Although Capsule doesn’t release many company statistics, Capsule currently operates in 13 city locations across the U.S. and anticipates they will have the ability to serve and reach 100 million Americans in the near future, according to Founder and CEO, Eric Kinariwala.

So how does Capsule make money off of all these customers?

Below is a breakdown of how much money Capsule makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Capsule Pharmacy makes money in 2022

Capsule Pharmacy has a revenue model that makes money in just one (1) way; by selling prescription medications.

#1. Selling Prescription Medications

Just like any other pharmacy, Capsule Pharmacy makes its money through selling prescription medications to customers.

How does Capsule make money from selling prescription medications? When a customer has a prescription filled through Capsule, Capsule makes and receives money from, both, the customer’s copay and the customer’s insurance company.

They also pocket the price difference between what Capsule pays for the medications and what the insurance company pays Capsule for them on behalf of their insured customer. Though Capsule’s margins are unknown.

Capsule profit and revenue

Capsule’s last reported earnings came in 2019 when they brought in $100+ million in revenue. Since then, Capsule has not released any official reports in regards to company earnings.

Note: Because Capsule is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Capsule business and revenue model?

Capsule Pharmacy makes money through a few revenue models that they combine within their company, they are:

  • Transaction based business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Capsule funding, net worth, and valuation

Capsule’s Crunchbase profile shows Capsule has raised $570 million over 6 rounds and has a valuation of $1 billion as of April 2021.

Capsule subsidiaries, acquisitions, and exits

To date, Capsule has not made any acquisitions, investments, or exits.