Remedial Health, a health-tech startup that develops solutions to make Africa’s pharmaceutical value chain more efficient, has secured $12 million in an equity and debt funding round to deepen the penetration of its services in Nigeria and support the delivery of targeted financial services to drive business growth across the country’s pharmaceutical sector.
Driving The News
The $8 million Series A equity funding round was led by US-based venture capital firm, QED Investors and co-led by Ventures Platform, who have now invested in Remedial Health at every funding round since the pre-seed stage.
This investment also represents Ventures Platform’s first Series A investment. Ycombinator, Tencent, and Gaingels also invested after participating in previous rounds. The $4 million debt funding was led by a consortium of local and international financial institutions.
By The Numbers
Across Africa, 85% of retail medicine purchases happen at micro-enterprises, typically neighbourhood pharmacies and) and Proprietary Patent Medicine Vendors (PPMVs).
For store owners, 90% of their wholesale purchases happen in open markets that are largely unfit for consumables and medicines. Store owners also have to endure expensive and time-consuming weekly order cycles that typically amount to two working days to access the inventory they need to stock their shelves.
How Remedial Health Works
Remedial Health operates at the intersection of healthcare, supply chain management, technology, and financial services, delivering the digital procurement infrastructure to power effective healthcare distribution for Africa’s 1.2 million pharmacies.
Starting in Nigeria, Remedial Health has built an effective operating system for pharmaceutical buyers and suppliers, working with more than 300 manufacturers and serving more than 5,000 hospitals, pharmacies, and PPMVs across 34 of Nigeria’s 36 states, with regional hubs to enable a seamless experience across the country.
Store owners can access more than 8,000 vetted products via the mobile app, with same-day delivery and inventory financing to minimise cash-flow friction for routine orders and maximise sales opportunities.
The startup also provides facility financing, payment solutions, and inventory management solutions that make it easier for store owners to run their business more efficiently and profitably.
What They’re Saying
According to Samuel Okwuada, CEO and co-founder of Remedial Health, “We are delighted to have raised these funds, particularly with the wider context of the global funding downturn and the wide range of economic headwinds in Nigeria. Our continued growth has put us in a strong position to deliver our mission of creating a tech-enabled, pharmacy-centred healthcare network and we are looking forward to leveraging these funds to achieve more success.”
Gbenga Ajayi, Partner, Head of Africa, QED Investors, said “The success that Remedial Health has enjoyed to date is an indication of the market gap that exists, and the value they provide in providing effective holistic services to thousands of pharmacies across Nigeria.”
Kola Aina, Founding Partner of Ventures Platform, said “We are incredibly proud to have been part of Remedial Health’s journey since the earliest phase of the company’s development. This partnership exemplifies our mission to support category leaders before they become obvious.”
Follow us on our WhatsApp Community, Twitter, and Instagram, and subscribe to our weekly newsletter to ensure you don’t miss out on any news.
Related