Earlier this year, Nigerian health tech startup Remedial Health announced plans to scale within the West African country by digitizing pharmacies and bringing efficiencies to the pharmaceutical supply chain after raising initial funds.
Since February, the YC-backed startup has increased its reach from six to 16 states within the populous nation, and plans to cover the remaining 20 as it embarks on a path to deepen its operations across the country. Buoyed by a new $4.4 million seed round of capital, 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 various angel investors, including Guillaume Luccisano and Christopher Golda.
Founded by Samuel Okwuada (CEO) and Victor Benjamin (COO) in 2021, Remedial Health makes it easy for pharmacies to source pharmaceuticals from leading manufacturers and distributors, including GSK, Pfizer and AstraZeneca, as well as Orange Drugs, Emzor and Fidson of Nigeria. Health care.
By allowing neighborhood pharmacies and hospitals to source from certified merchants, the startup brings new efficiencies to pharmaceutical value chains and stops the supply of substandard and fake products. Its inventory financing and loan features help its customers increase the size of their baskets and improve their operational efficiencies.
Okwuada said that since the beginning of the year, the startup has grown by leaps and bounds due to the adoption of its digital offering, buy now and pay later products, and expansion activities.
“We have seen more than 6x growth in the number of clients on our platform since January. The feedback we consistently receive about what they like best about our platform has to do with the ease and efficiency of our inventory financing offering, the variety of products they can access on our platform, and the effectiveness of our checkout process. acquisition, regardless of where our customers are located. Nigeria, they usually get their orders within 24 hours,” Okwuada told TechCrunch, adding that last-mile delivery, supported by its distribution centers, is done in-house or through its partners.
“The launch of our inventory financing product has also attracted more customers to our platform as they have been able to take advantage of it to grow their businesses and meet the challenge of rising prices. More than 60 percent of our customers use the inventory finance product and we have seen more than 50 percent growth in their average basket size since we launched the product,” Okwuada said.
The startup’s digital offering includes a digital procurement platform that enables pharmacies to manage their operations by making it easy to place and track orders. It also supports accounting and financial reporting, while providing real-time market intelligence that improves manufacturers’ decision-making on forecasting, production, and distribution.
Its Patient Medication Record (PMR) system gives pharmacies access to customer data, making ordering clearer and operations more efficient, in the drive to deliver healthcare services better and more specific in their regions of operations.
Like Nigeria’s Drugstoc, Remedial Health is among the growing health technology startups optimizing Africa’s pharmaceutical sector, an industry that has remained fragmented for decades, leading to stock outs, Erratic quality and prices.
Global Ventures Director Sacha Haider said: “The market opportunity to serve community pharmacies in Africa is significant. In Nigeria alone, 500,000 community pharmacies generate more than 80% of a market of $70 billion in annual pharmaceutical sales. The Remedial Health team is proactively addressing challenges including pricing opacity, poor drug quality control, and a highly fragmented supply chain through a pharmacy-centric, pharmacy-enabled healthcare network. the technology that has enabled cost reductions of more than 25% at the point of care.”