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e-Pharmacy startup MYDAWA closes its largest round yet at $20 million

July 3, 2023
in Technology
e-Pharmacy startup MYDAWA closes its largest round yet at $20 million
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MYDAWA has raised funds three times before, but the latest round marks its biggest fundraising event yet as it eyes to expand beyond East Africa. 

MYDAYA, an e-pharmacy platform based in Kenya and operates in the East African region, has raised $20 million in funding from Alta Semper Capital. This marks the company’s fourth fund driver after launching in 2016. MYDAWA, which offers health services through online and physical stores, has also purchased Guardian Health, a pharmacy chain that operates in Uganda. The firm has not revealed how much it paid for the acquisition, but a statement from the company says that it is part of MYDAWA’s plan to expand its turf into new markets.

The new Ugandan arm has 19 new stores in Kampala and neighbouring regions. MYDAWA adds that it is actively looking for potential acquisitions, collaborations, and promising startups across Africa. It is also interested in engaging with more partners and value-add investors as it expands.

In a statement by the MYDAWA, the company said, “MYDAWA is also partnering with other major health providers and businesses. Sales of its own brand products to wholesalers, clinics, pharmacies and supermarkets are growing rapidly. Sales of its services, from telehealth to fulfilment, are commencing with some of Kenya’s biggest clinic chains to expand their reach. It is partnering with insurers and others to develop and fulfil best practice chronic care as illnesses such as diabetes become an increasing issue in Africa. It provides rich data to partners.”

Alta Semper’s CEO, Afsane Jetha, says, “This investment marks our entry into digital healthcare in Africa, which we see as a major growth area across Africa in the coming years. MYDAWA was the logical choice for us as their groundbreaking technology, underpinning a scalable business model along with regulatory know-how and market entry experience, mapped so well to our own strategy. The drive to increase access to good advice and safe and affordable medication is core to our overall mission of democratising access to health and wellbeing across the African continent.”

Before today’s fund, MYDAWA had raised a little over $9 million in previous rounds. Its seed round occurred in March 2017, when it raised $1.5 million from Indigo Partners. Two years later, it staged a Series A round with $3 million raised from Africa HealthCare Master Fund and Indigo Partners. Then towards the end of 2021, MYDAWA raised $1.2 million from Bill & Melinda Gates Foundation.

During the reveal of the fund, MYDAWA announced the appointment of Pricillah Muhiu as its business lead in Kenya. Priscillah worked at Glovo as general manager for the Kenyan market. “Under Priscilla’s leadership, there is already significant expansion of both consumer and business-to-business activities,” says MYDAWA.

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