A GLASGOW-based start-up that describes its business model as the “Deliveroo of pharmacy” has set its sights on expansion in major cities south of the Border.

Phlo, founded by former banker Nadeem Sarwar at the start of the year, has grown rapidly since it secured its first contract with the NHS in England. That deal has led the firm to establish a strong foothold in London, where it delivers prescriptions to patients by bike. Now it plans to move into Manchester and Birmingham, with growth aspirations boosted by a £1.65 million crowdfunding campaign. That campaign, which launched on Crowdcube this week, is expected to be over-subscribed.

Phlo is a registered pharmacy, permitting it to dispense prescriptions, and has built the back-end operating technology and software for its digital platform. It also controls its own logistics operation, with patients promised that they will receive their prescriptions within four hours of being issued by their GP.

The company, which has received “significant investment” from a private cornerstone investor, ultimately plans to launch its service in Scotland, but at present the NHS north of the Border is still developing the technology – an electronic prescription system – required. However, the company’s now 30-strong team is led from Scotland, where it has staff in highly-skilled roles such as software engineers, designers and pharmacists.

Mr Sarwar, who had the idea for the business five years ago when he visited Babson College near Boston with Adam Hunter, now Phlo chief commercial officer, said the plan is to scale up “city by city”.

He added: “There are 36 million patients on prescription in England. About 1% have gone online. My firm belief is the next five million patients will go online in the next two years – it is our job to go and grab a nice slice of that market share.”

As well as serving patients “on demand” through its digital platform, Phlo has a mail order business, and Mr Sarwar expressed hope that a hub for the latter could be established in Glasgow.

Asked why the firm had chosen to crowdfund the venture, Mr Sarwar said he was inspired by the “BrewDog model”, noting that it offers a chance for patients to have a stake in an important service.

“Fundamentally, we are a consumer-facing brand,” he said. “We are marketing to the individual, and we think crowdfunding is a really good way to do that.”

Phlo has also received investment from the UK Government Future Fund, in the form of a convertible loan note. Longer term, the company is eyeing venture capital funding.

Mr Hunter said Phlo’s “laser focus” on patient care was a “key pillar” of the business. He said if it continues to provide “excellent” patient care it will “allow us to continue to grow.”

Chief financial officer Lauren Nicholson said the firm is forecasting turnover of £1.6 million in its first year, which ends in March.