Mevo raises R$110 million and guarantees investment for the next ten years
Mevo — a digital prescription startup for medicines and exams — has just raised a round of R$ 110 million, strengthening its cash position at a time of strong business expansion.
The Series B round was almost entirely funded by Matrix, a San Francisco-based fund founded in 1977 and one of the earliest investors in Apple, FedEx, and Canva.
This marks the first time Matrix has invested in a startup in Brazil.
Matrix contributed 95% of the R$ 110 million, with the rest coming from Jefferson River Capital, the family office of Hamilton James, former president of Blackstone and current chairman of Costco.
This round comes eight months after Mevo raised an additional R$ 21 million in a pre-Series B round led by existing investors on the startup’s cap table, a list that includes American company Floating Point.
“It’s a great achievement to close this Series B after going through tough times,” co-founder Pedro Dias told Brazil Journal. “I think we are coming out stronger and more prepared for this new phase.”
According to him, the funds from this round “are more than enough” to allow the startup to reach the breakeven point.
“We went a long time without generating revenue, only building the electronic prescription infrastructure, and we had to go through the fundraising dynamics every year to take the next step. And this is a very exhausting dynamic for the founders,” he said.
“With these R$ 110 million, we have the money to think about the next decade of Mevo.”
Founded in 2017 by Pedro and Lucas Lacerda, Mevo has created a digital prescription system for medicines and exams that is already being used by nearly 1,000 hospitals, including giants like Rede D’Or, Kora Saúde, and Oncoclínicas.
This year, Mevo is expected to issue prescriptions for more than 10 million patients.
Hospitals do not pay anything to use Mevo’s digital prescription, which only began monetizing its user base in 2022 when it launched a marketplace for medicines.
When the customer receives the prescription on their phone, they can click the ‘buy’ button, opt-in, and access a page with the offer of medicines.
Mevo sells products from its own digital pharmacy — Mevo Farma, operating on a 1P model — as well as third-party products. To sell Mevo Farma products, the startup maintains a logistics center in São Paulo, from where the medicines are dispatched.
Mevo does not disclose its revenue from the marketplace, but Pedro stated that revenue is expected to grow by 133% this year.
The startup operates the marketplace nationwide, but delivers medicines within 4 hours only in the South and Southeast regions. The plan now is to extend this level of service to the North and Northeast regions.
Mevo will also use the funds from this round to attract new hospitals and grow its B2C solution, recently launched, which allows any doctor (even those not affiliated with a hospital) to access the company’s software.
Pedro believes the potential is significant: there are 5,000 hospitals in Brazil and over 500,000 doctors.
“There is plenty of room for further growth, and this money buys time to continue this expansion,” Pedro said. “We will grow our team further and continue to protect our position in the sector.”
Mevo’s main competitor is Memed, acquired by DNA Capital, owned by the Bueno family, in 2021. At that time, DNA invested R$ 300 million in the startup, buying out all investors and injecting capital into the company’s cash reserves.
Memed operates with the same strategy as Mevo: offering its prescription system for medicines for free to hospitals and doctors, while monetizing through a marketplace for medicines and exams.
Another goal of Mevo with this round is to create a vertical focused on the pharmaceutical industry. Mevo aims to develop a solution to increase patient adherence to treatment by creating a personalized buying experience for its marketplace customers and offering discounts in partnership with pharmaceutical companies.
The startup also wants to help industries connect with doctors, acting as a complement to medical representatives.
To lead this effort, Mevo has hired Sylvia Campos, who founded Azimute Med, a patient support company that was acquired by Viveo in 2022.
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.