Nigerian e-health startup DrugStoc has raised US$4.4 million in Series A funding to expand access to quality medicines while providing sustainable supply chain financing for healthcare providers in Sub-Saharan Africa.
Launched in 2017, DrugStoc is a cloud-based platform that provides healthcare providers with the interface for easy access to pharmaceuticals and healthcare products. The startup ensures that patients get quality medicines at affordable prices.
Having grown over the last three years with an almost 1,500 per cent increase in monthly sales since January 2018, 14 million people currently have access to genuine healthcare products through hospitals and pharmacies covered by DrugStoc. It now plans further coverage after raising US$4.4 million in Series A funding in a round led by Africa HealthCare Master Fund (AAIC). Other investors include Chicago-based venture firm Vested World and the German Development Bank (DEG).
The funding round will help the company in its plans to grow coverage to about 100 million people. It plans to achieve this by expanding its supply chain infrastructure both digitally and physically. Digital expansion will see DrugStoc build out its tech solutions to boost access and accommodate more partners as it extends coverage beyond Lagos, while it will also invest in quality cold chain infrastructure to enhance safe distribution of perishable products.
In addition, DrugStoc will build on its partnerships with financial institutions such as Sterling Bank to increase access to sustainable supply chain financing.
“Fragile and resource-challenged healthcare systems require a radically transformative set of market-based strategies to expand access to healthcare. The DrugStoc way re-engineers the value chain digitally, improving and expanding access to healthcare at the same time,” said Chibuzo Opara, DrugStoc’s co-founder and chief executive officer (CEO).
“We are very excited to be part of the DrugStoc journey. The pharmaceutical market in Africa has enormous growth potential and we are glad to back a company well positioned to be a key player in the sector’s growth in Sub-Saharan Africa,” said Nobuhiko Ichimiya, director at AAIC.