South African venture capital (VC) firm HAVAÍC announced today that it has led a fully subscribed equity raise of R4.5-million in Cape Town healthtech startup RecoMed.
The investment was secured by HAVAÍC, the Association for Savings and Investment South Africa’s Enterprise and Supplier Development (ASISA ESD) Fund, and Growth Grid Venture Capital Partners.
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It comes after Recomed founder Sheraan Amod (pictured above) last week revealed that his startup, which he founded in 2013, had been in talks with a funder for a second-round of funding.
Read more: SA medical bookings platform Recomed set to announce new funding round
The startup recently began white labelling its platform – which allows patients to book appointments with health care professionals – to health-care providers such as Discovery Wellness Clinics, Medicross, Biokinetics Association of SA, and several other national healthcare providers.
Recomed founder Sheraan Amod last week revealed that his startup had been in talks with a funder for a second-round of funding
The latest investment follows a previous capital equity raise of R6-million from the ASISA ESD Fund in January last year. The investor increased its equity participation with this new round, to an undisclosed share.
While HAVAÍC Grant Rock executive director revealed that the VC firm was in talks with the startup for about six months before the conclusion of the round, he did not want to disclose the equity stake, saying only that it was for a significant minority stake.
In terms of the capital raise for the current round, R3-million will be utilised in the immediate term, and the balance of R1.5-million to be drawn at RecoMed’s request within six months of the initial draw down.
RecoMed will use the funds raised to strengthen the balance sheet, fund a shift to increasing product traction and towards marketing its products and services.
The short-term objectives are to complete several new integrations with leading industry healthcare software systems while steadily growing its current clientele base of 1400 practitioners; and to double monthly bookings to 40 000 per month.
Rock said HAVAÍC is currently in the process of advising one other health tech startup on sourcing funding, but did not want to disclose any more details at this stage.
Featured image: Recomed founder Sheraan Amod
