SkyCell, a Swiss startup that specializes in the transport of valuable medicines and their components, has secured $116 million in Series D funding to expand its business. The latest investment brings the company’s valuation to $635 million, and it plans to use the funds to strengthen its presence in Asia and the U.S.
The company’s rise gained attention during the Covid-19 pandemic when there was a heightened focus on the delicate nature of vaccines that require specific temperature controls. However, SkyCell was established in 2012 when its founders, Richard Ettl and Nico Ros, were tasked with designing a storage facility for a Swiss pharma giant. The concept of applying their work to transportation containers led to the birth of SkyCell.
SkyCell’s system revolves around “smart containers” powered by machine learning and software. These containers maintain strict temperature, humidity, and vibration levels, making them ideal for transporting vaccines. Additionally, the company has developed a software logistics system called “SkyMind” to facilitate the global transportation of drugs.
The demand for secure medicine transport has been steadily increasing, and SkyCell has experienced 50% annual growth over the past few years. Its customer base includes pharmaceutical companies and a network of cargo partners responsible for transporting these critical items.
According to CEO Richard Ettl, the company’s success can be attributed to the growing number of products entering the market and the increasing global population. However, another driving factor is the need for decarbonization within the pharmaceutical industry. Pharmaceutical companies account for 4.4% of global emissions, prompting them to commit to reducing their carbon footprints.
This focus on decarbonization has worked in SkyCell’s favor as it has been actively working towards reducing the carbon footprint of air transportation for nearly a decade. The company’s containers are approximately half as heavy as those of its competitors, resulting in a 50% reduction in CO2 emissions.
The financial impact of going green is significant for pharmaceutical companies. Ettl estimates that it would cost about 2% of sales for a large pharma company to substantially reduce its carbon footprint. SkyCell offers an opportunity to reduce costs in this area, making it an attractive option for companies seeking to meet their emissions targets.
While containers and logistics software remain SkyCell’s core products, the company has unexpectedly found itself selling components of its products to customers. For instance, it is now selling its smart thermometers, originally developed for its containers, to a pharmaceutical customer.
Bosun Hau, MD of Tybourne Capital Management, believes that SkyCell’s comprehensive system, combining hardware, software, and big data analytics, positions the company as a technology partner of choice for the global pharmaceutical industry. The pharmaceutical logistics industry has seen little innovation in recent decades, and SkyCell’s innovative solutions are transforming the sector.
In conclusion, SkyCell’s latest funding round allows the company to further establish itself as a leader in secure medicine transport. Its focus on decarbonization aligns with the industry’s growing commitment to reducing emissions. With its advanced technology and comprehensive system, SkyCell is well-positioned to continue revolutionizing pharmaceutical logistics.
