NIGERIA – Remedial Health, a Nigeria-based healthtech startup that develops solutions to make Africa’s pharmaceutical value chain more efficient, has raised US$4.4 million in seed funding to accelerate its expansion across Nigeria.
The round was led by Global Ventures, with participation from Tencent, Y Combinator, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Alumni Ventures and True Capital Management and angel investors such as Guillaume Luccisano and Christopher Golda.
The company intends to use the funds to provide access to credit for inventory purchases for its customer base of neighbourhood pharmacies, Proprietary Patent Medicine Vendors (PPMVs) and hospitals in the country and expand across Africa in 2023.
“The funds that we have raised and the strategic support from our investors will enable us to deliver the solutions to address various challenges that have hampered these businesses’ growth for many years and make it easier to safeguard lives and livelihoods across the continent for years to come,” said Samuel Okwuada, CEO and co-founder of Remedial Health.
The startup had raised US$1 million in pre-seed funding earlier this year to digitize neighbourhood pharmacies across Africa starting with Nigeria.
The funding round was led by Global Ventures and Ventures Platform, with participation from Ingressive Capital, Voltron Capital, among others.
Led by Samuel Okwuada, CEO, Remedial Health provides a range of solutions, including its digital procurement and PMR (patient medication records) platforms that make it easier for neighbourhood pharmacies, PPMVs and hospitals to access affordable and authentic retail medicines.
Healthcare providers can source vetted medications with 24-hour delivery to their practice via Remedial Health’s logistics network. In addition to procurement, pharmacies and PPMVs can access credit for 24-hour inventory purchases and provide loans and salary advances for employees.
In addition to procurement, pharmacies and PPMVs can access credit to fund inventory purchases and provide loans and salary advances for employees.
Since January 2022, Remedial Health says it has seen 600 per cent increase in sales volumes and the company now covers 16 of Nigeria’s 36 states.
This new funding will support the rollout of its services across the rest of Nigeria, and also lay the groundwork for expansion across Africa in 2023.
The impact of various global events over the last three years – from the COVID-19 pandemic to rising inflation – has led to a sharp increase in the price of medicines in Nigeria.
By leveraging Remedial Health’s tech-enabled platform, neighbourhood pharmacies, PPMVs and hospitals can benefit from group/bulk buying discounts, time-saving and improved efficiency, access to credit to improve their earnings, as well as additional revenue from providing financial services and other primary healthcare services.
Manufacturers also benefit from an efficient supply chain, a clear and instant route-to-market for their products and real-time intelligence on product utilization to improve decision-making on forecasting, production and distribution.
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