Earlier this year, Nigerian health tech startup Remedial Health announced plans to expand into the West African country by digitizing pharmacies and improving the efficiency of the pharmaceutical supply chain. after raising seed money.
The YC-backed startup has since February expanded its reach from six to 16 states within the populous nation, and plans to cover the other 20 as it embarks on a path to deepen its operations across the country. Backed by a new funding round of $4.4 million, Remedial Health is also looking for growth opportunities in East and West Africa.
The latest round was led by Global Ventures, the venture capital firm that co-led its pre-seed round, with participation from Tencent, Y Combinator, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Alumni Ventures and True Capital Management, and a number of angel investors including Guillaume Luccisano and Christopher Golda.
Founded by Samuel Okwuada (CEO) and Victor Benjamin (COO) in 2020, Remedial Health enables pharmacies to easily source pharmaceutical products from leading manufacturers and distributors including GSK, Pfizer and AstraZeneca, as well as Orange Drugs, Emzor and Fidson from Nigeria. Health care.
By enabling neighborhood pharmacies and hospitals to source from certified merchants, the startup is bringing new efficiencies to pharmaceutical value chains and stemming the supply of counterfeit and substandard products. Its inventory financing and lending features help its customers increase their basket size and improve their operational efficiency.
Okwuada said that since the start of the year, the startup has grown by leaps and bounds through adoption of its digital offering, buy-now-pay-later product, and expansion activities.
“We have seen more than 6 times more customers on our platform since January. The feedback we constantly receive about what they like most about our platform relates to the ease and effectiveness of our inventory financing offering, the variety of products they can access on our platform, and the efficiency of our process. of supply – wherever our customers are based. In Nigeria, they usually receive their orders within 24 hours,” Okwuada told TechCrunch, adding that last mile delivery, supported by its fulfillment centers, is done in-house or through its partners.
“The launch of our inventory finance product also attracted more customers to our platform as they were able to take advantage of it to grow their business and meet the challenge of rising prices. Over 60% of our customers use the inventory finance product and we have seen over 50% growth in their average basket size since product launch,” Okwuada said.
The startup’s digital offering includes a digital procurement platform that allows pharmacies to manage their operations by making it easier to take and track orders. It also supports financial reporting and accounting, while providing real-time market insights that improve manufacturers’ decision-making in forecasting, production, and distribution.
Its Patient Medical Records (PMR) system gives pharmacies access to customer data, making their orders clear and their operations more efficient, with the aim of providing more targeted and higher quality healthcare services in their regions of operations.
Like Drugstoc in Nigeria, Remedial Health is among the health tech startups streamlining the pharmaceutical sector across Africa, an industry that has remained fragmented for decades leading to unavailability of stock, problems quality and erratic prices.
Global Ventures Director Sacha Haider said, “The market opportunity to serve community pharmacies across Africa is significant. In Nigeria alone, 500,000 community pharmacies account for more than 80% of a $70 billion market in annual pharmaceutical sales. The Remedial Health team proactively addresses challenges including pricing opacity, poor drug quality control and a highly fragmented supply chain through a technology-driven healthcare network and focused on the pharmacy that has reduced costs at the point of care by more than 25%.