Traditionally, the aesthetics and wellness industry – med spas, dermatologists, plastic surgeons, weight loss clinics, OBGYNS and others – relied on in-person consultations and ad hoc marketing campaigns to drive business. But the pandemic changed the equation. Today, there is an expectation that these businesses will have a presence on major digital channels.
Not every practice has the skills and expertise to create such a presence, however – which is where companies like RepeatMD come in. Founded in 2021, RepeatMD provides turnkey software solutions to operators in the aesthetics and health sector.
“RepeatMD’s buyers are small and medium-sized businesses that want to generate a new revenue stream for their practice,” Phil Sitter, founder and CEO of ReadMD, told TechCrunch in a email interview. “Our platform allows practitioners to sell their treatments around the clock and improve the patient purchasing experience through a mobile app.
Sitter, a repeat entrepreneur, bootstrapped RepeatMD profitably until late 2022, when the startup closed its seed round. He funded Repeat with part of the proceeds from VIPinsiders, a Houston-based food and beverage loyalty and rewards program (Sitter is originally from Houston), and a restaurant owned by Sitter, the brunch-based Houston and lunch restaurant EggHaus Gourmet.
As Sitter explained, RepeatMD builds apps for aesthetics and wellness businesses – apps that allow customers to sign up and pay monthly memberships to practices and repeat treatments. Through an integration with Affirm, customers can pay for services in monthly installments as they wish.
Like many loyalty programs, RepeatMD’s apps also “push” customers by sending them notifications with discount offers. Sitter describes these as “Starbucks Rewards-style” experiences.
“The goal is to be the Shopify of the medical industry, helping medical practices sell more than their select-based methods,” Sitter said. “We are investing in algorithmic solutions to streamline the practice onboarding process and improve the patient purchasing experience, making it easier for patients to find treatments that fit their goals. “
This appears to be a winning strategy for RepeatMD. The company claims to now serve more than 3,500 practices and 700,000 users, and RepeatMD’s software-as-a-service revenue increased 130% last year, according to Sitter.
That piqued the interest of investors. Today, RepeatMD announced that it has raised $40 million in a funding round led by Centana Growth Partners and Full In partners with participation from Proof and Mercury Fund, along with a $10 million loan from Silicon Valley Bank. (Sitter says the loan was obtained on “favorable terms.”)
The new capital, which brings RepeatMD’s total raised to $56 million, will be used to grow the network of startup partners, build the RepeatMD platform and expand the company’s team of about 130 employees to more of 150 by the end of the year, Sitter said.
“RepeatMD has seen tremendous acceleration in its product over the past 12 months as practices look for new ways to generate revenue,” he added. “We bring new revenue for practices and the rewards program solves patient retention.”