Health-tech startup, Remedial Health, recently secured $12 million in Series A funding, consisting of $8 million in equity and $4 million in debt. The company intends to utilize this capital infusion to expand its operations in Nigeria and enhance the provision of specialized financial services aimed at fostering the growth of the pharmaceutical sector throughout the country.
The startup, focused on digitizing pharmacies and optimizing the pharmaceutical value chain, expressed its commitment to prioritize expanding its presence in the 34 states where it currently operates in Nigeria.
To achieve this, the company aims to enroll more pharmacies and hospitals, particularly in rural areas where there is a growing demand for their services. By doing so, Remedial Health aims to enhance efficiency and accessibility in the healthcare sector across the country.
Remedial Health successfully raised $8 million in Series A equity funding, with prominent US-based venture capital firm, QED Investors, leading the investment round. Co-leading the funding round was Ventures Platform, a consistent supporter of Remedial Health since its pre-seed stage, having participated in every funding round thus far. This strong financial backing from established investors underscores the promising potential of the health-tech startup and validates its growth trajectory in the market.
Additionally, this investment marks Ventures Platform’s inaugural Series A investment. Notably, Ycombinator, Tencent, and Gaingels also contributed to this funding round, demonstrating their continued support for Remedial Health after participating in previous investment rounds.
The $4 million debt funding was led by a consortium of local and international financial institutions.
The $4 million debt funding was spearheaded by a consortium of both local and international financial institutions. These institutions joined forces to provide crucial financial support to Remedial Health, enabling the startup to fuel its growth and execute its strategic plans effectively.
What they said about the funding
Remedial Health’s CEO and co-founder, Samuel Okwuada, expressed his delight in successfully raising these funds, especially in the challenging context of a global funding downturn and the various economic challenges faced in Nigeria.
He also said “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, QED Investors partner and head of Africa, commented on the investment, stating that the success that Remedial Health has achieved so far is a clear testament to the existing market gap and their significant value in delivering comprehensive and efficient services to numerous pharmacies across Nigeria. QED is particularly enthusiastic about the embedded financial services prospects within this sector, such as the potential to offer payments, embedded lending, and other fintech solutions to this vital yet underserved industry.”
Kola Aina, Founding Partner of Ventures Platform, also shared his thoughts on the investment in Remedial Health, stating: “We take immense pride in being part of Remedial Health’s journey from its earliest stages of development. This partnership exemplifies our mission to support pioneering leaders even before their potential becomes evident. Remedial Health’s unwavering commitment to enhancing Nigeria’s pharmaceutical value chain is crucial, and their achievement in securing this $12 million funding exemplifies their remarkable growth and the management team’s perseverance over the years. Our investment in this round reflects our continued confidence in their mission to provide financial services to local pharmacies and drive further expansion in the pharmaceutical sector.”
What to note about Remedial Health
In 2021, Remedial Health was founded by Samuel Okwuada (CEO) and Victor Benjamin (COO). The startup’s platform enables pharmacies and hospitals to access a wide range of pharmaceutical products from reputable manufacturers and verified distributors, ensuring reliability and trustworthiness in the supply chain.
This initiative serves to address the issue of fluctuating prices and the proliferation of counterfeit and substandard products, which have been responsible for numerous preventable deaths in Nigeria and across Africa. By providing a reliable platform for sourcing pharmaceutical products from trusted manufacturers and verified distributors, Remedial Health contributes to better quality control and minimizes the risks associated with unsafe drugs. Moreover, the platform ensures proper handling of the products, a significant improvement compared to the open drugs market in Nigeria.
All about competition
Remedial Health faces competition in the Nigerian market, as there are other players like Drugstoc, a health-tech startup founded in 2015 by Adham Yehia and Chibuzo Opara. Drugstoc also focuses on digitizing the sale of pharmaceutical products in Nigeria, striving to improve and streamline the healthcare industry’s efficiency and accessibility.
Licensed hospitals, pharmacies, and medical experts have the opportunity to acquire genuine pharmaceutical and healthcare products directly from certified distributors across Nigeria through Drugstoc. Recent reports indicate that Drugstoc’s services are utilized by over 3,000 doctors and pharmacists in the country.
The company employs a globally accredited end-to-end traceable supply chain, ensuring the authenticity and reliability of the pharmaceutical and healthcare products it offers. This approach enhances trust and confidence in the industry, benefiting both healthcare providers and patients.
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