Cambodia Investment Review
In the 290th episode of the BRAVE Southeast Asia Tech Podcast, host Jeremy Au sat down for an insightful conversation with Dr. Vireak Chea the first Cambodian to feature on the regional podcast so far. A pharmacist by profession, with a doctorate degree from the United States and ten years’ experience working with one of the largest retail pharmacy chain store in the U.S., Vireakis the co-founder of PillTech, a trailblazing startup transforming Cambodia’s healthcare ecosystem.
The two first met during the inaugural Start-Up & Innovation Festival Cambodia 2023 hosted by Rising Giants and Cambodia Investment Review in April, Vireak spoke on the panel discussion on “The Best Ways to Raise Startup Funding in Cambodia”.
Opening the conversation Vireak explained that his decision to return to his homeland of Cambodia, leaving behind a successful career in the US, was motivated by his desire to contribute to the Cambodian healthcare system’s development and be closer to family. “Upon returning to Cambodia, I was keen on leveraging my knowledge and experience in retail pharmacy. However, one of the most glaring challenges in Cambodia was the decentralized and fragmented pharmaceutical supply chain,” Vireak explained.
In stark contrast to the US’s centralized supply system, pharmacies in Cambodia had to deal with multiple suppliers, distributors, and wholesalers to stock their stores. While the large grey market for pharmaceuticals further complicates matters. These systemic issues served as the catalyst for Vireak innovative venture, PillTech.
“One of the biggest pain points of starting a retail pharmacy in Cambodia was dealing with numerous suppliers, distributors, and wholesalers to procure the necessary products. This, coupled with the prevalence of a large grey market, led me to envision a consolidated digital platform that would resolve these issues – PillTech,” Vireak elaborated.
Significant role that pharmacies play in Cambodia
However, the process of returning to Cambodia and setting up a startup come with challenges. Vireak recounted his experiences, “Rebuilding my friendship base due to cultural differences was initially hard. But once I reestablished those connections, navigating the environment became easier.”
Moreover, Vireak acknowledged the difficulty of transitioning from an employee in a large pharma company in the US to an entrepreneur in Cambodia. “My university degree focused more on the science of pharmacy and had not prepared me for running a business,” he said. Despite the lack of business training during pharmacy school, Vireak was determined to bring about a systemic shift in Cambodia’s healthcare infrastructure.
Understanding the significant role that pharmacies play in Cambodia’s healthcare delivery, especially in rural areas where they often act as the primary healthcare provider, Vireak recognized the urgent need for digital solutions. “I realized that digitizing the pharma industry’s backend operations, such as supply chain and inventory management, would free up more time for pharmacists to spend with their customers and create stronger connections,” Vireak noted.
In the course of the conversation, Vireak and Jeremy also delved into the unique challenges and learnings from his entrepreneurial journey. “You have to remember that strategies which worked in markets like the US need to be adapted to the local context,” Vireak asserted. “Understanding the local market’s pain points and tailoring technology to meet these challenges is crucial.”
An intriguing aspect that Vireak touched upon was the unique role of pharmacies within Cambodian communities. “For many middle to lower-income families, a traditional GP or clinic visit is often unaffordable for minor ailments,” Vireak shared. “These families rely on pharmacies, who dispense the relevant medicine based on the customers’ symptoms.”
With its B2B pharma marketplace platform, PillTech aims to make purchasing products easier for pharmacies, ultimately benefiting consumers who get access to affordable and quality products. “PillTech’s POS system helps our pharmacy customers leverage technology for stock keeping and bookkeeping, traditionally done by hand and challenging to keep track of, especially for expiry dates and stock rotation,” Vireak added.
Access to affordable and reliable medication for all consumers
The conversation also veered towards unexpected learnings. “Price sensitivity amongst pharmacies was surprisingly high. Moreover, understanding our target audience was crucial. We found that young pharmacists, who understand tech better and are keen on long-term business building, were more willing to adopt our platform,” Vireak said.
Hiring locally was another challenge Vireak faced. He elaborated, “Being patient and spending extra time with local staff, understanding their cultural norms, and training them was essential.”
Read more: PillTech pins hopes on changing pharmacy culture in Cambodia
Reflecting on PillTech’s long-term 10-year vision, Vireak stated, “Our ambition is to provide access to affordable and reliable medication for all consumers.” He also emphasized that PillTech is not just about building a platform but is about creating an ecosystem where all pharmacies, irrespective of their size or location, can thrive.
He further mentioned plans for regional expansion, specifically into Laos and Myanmar, where healthcare challenges are similar to Cambodia’s. Vireak sees enormous potential in these markets for PillTech’s platform.
The conversation concluded on a hopeful note, with Vireak emphasizing his belief in the transformative potential of digital healthtech. His entrepreneurial journey serves as an inspiration and underscores the significant impact that startups like PillTech can bring to a country’s healthcare landscape, signaling a promising future for Cambodia’s healthtech sector.
