Exclusive: Cabinet Health raises $17M in debt and equity

Cabinet Health, a startup that sells over-the-counter medication in reusable and compostable packaging, raised $17 million in combined debt and equity funding, the company tells Axios.

Why it matters: Cabinet Health was able to rely on its sustainability pitch to secure the funding as other health care startups are struggling to stay afloat.

Details: Global Impact Fund led the round, which worked out to roughly half equity funding and half debt financing, CEO Achal Patel tells Axios. Natureza and Unreasonable Group also participated in the round. Patel declined to disclose the valuation.

How it works: Cabinet Health sells five categories of over-the-counter medication and supplements — cold and flu medication, pain relief, sleep aid, allergy relief and digestive aid — in glass containers that replace single-use plastic bottles.

• It sends refills in compostable packages made from wood pulp that meet FDA guidelines for medical packaging, Patel says.
• Patel says that it was a difficult fundraising process but getting climate and sustainability investors on board helped seal the round.
• He said it took a "few months" to finalize the round, which closed in November.

Quick take: Startups in struggling sectors may look to adopt sustainability initiatives as a broader business strategy to attract investors in an otherwise volatile market.