In collaboration for a report detailing the societal benefits of Artificial Intelligence in South Africa, the Boston Consulting Group, Microsoft South Africa including Wits…
Remedial Health, a leading African healthtech start-up, has secured $12 million in an equity and debt funding round. The company specialises in developing solutions that enhance the efficiency of Africa’s pharmaceutical value chain.
The fresh injection of capital will bolster the expansion of its services across Nigeria and aid the delivery of specific financial services aimed at bolstering growth in the country’s pharmaceutical sector.
The Series A equity funding round, amounting to $8 million, was spearheaded by the U.S.-based venture capital firm, QED Investors, and co-led by Ventures Platform, an existing investor that has been supporting Remedial Health since the pre-seed stage.
This Series A funding also marks the first from Ventures Platform. Other investors include Ycombinator, Tencent, and Gaingels, who have also participated in previous rounds. The remaining $4 million in debt funding was fronted by a consortium of both local and international financial institutions.
In Africa, nearly 85% of retail medicinal purchases occur at micro-enterprises such as local pharmacies and Proprietary Patent Medicine Vendors (PPMVs). These outlets often grapple with challenges arising from paper-based operations, and procure 90% of their wholesale inventory from open markets that are unsuitable for consumables and medications.
Additionally, the expensive and time-consuming weekly order cycles take up to two working days to complete, exacerbating the difficulties in maintaining profitability.
Remedial Health works at the nexus of healthcare, technology, supply chain management, and financial services, providing digital procurement infrastructure to streamline healthcare distribution for Africa’s 1.2 million pharmacies.
Starting from Nigeria, the start-up has developed a potent operating system for pharmaceutical stakeholders, currently collaborating with over 300 manufacturers and serving over 5 000 healthcare facilities, including hospitals, pharmacies, and PPMVs across 34 of Nigeria’s 36 states.
Through its mobile application, store owners can access more than 8 000 vetted products, benefit from same-day delivery, and utilise inventory financing to streamline cash-flow for routine orders and optimise sales opportunities.
Remedial Health also offers facility financing, payment solutions, and inventory management tools to aid the profitable and efficient operation of businesses. For pharmaceutical manufacturers, the start-up provides an effective route-to-market strategy, supplemented with data-driven market insights that facilitate strategic decision-making.
Remedial Health will use the newly raised funds to augment the depth of its services across Nigeria and foster the development of innovative solutions to improve efficiency in the pharmaceutical value chain.
“We are delighted to have raised these funds, especially considering the global funding downturn and Nigeria’s economic challenges,” says Samuel Okwuada, CEO and co-founder of Remedial Health.
“Our sustained growth has fortified our mission of building a tech-enabled, pharmacy-centred healthcare network, and we eagerly anticipate utilising these funds to drive more success.”
“The success of Remedial Health exemplifies the existing market gap and their value in delivering holistic services to thousands of pharmacies across Nigeria,” says Gbenga Ajayi, partner and head of Africa at QED Investors.
“Remedial Health’s unique positioning as a partner across the entire pharmaceutical value chain, and the founder’s backgrounds as seasoned pharma operators and tech professionals, position them perfectly to tackle these challenges. We look forward to supporting their journey and leveraging our fintech DNA in this positive growth narrative.”
Kola Aina, founding partner of Ventures Platform, added, “We are proud to have been part of Remedial Health’s journey from the earliest stages. This partnership embodies our mission to back category leaders before they become apparent.
“Their commitment to enhancing Nigeria’s pharmaceutical value chain is vital, and this $12 million funding round is testament to their phenomenal growth and management’s resilience. We continue to believe in their mission to deliver financial services to neighbourhood pharmacies and drive deeper growth in the pharmaceutical sector.”