Nigerian startup Remedial Health, which develops solutions to make Africa’s pharmaceutical value chain more efficient, has raised US$4.4 million in seed funding to accelerate its expansion across Nigeria and to provide access to credit for inventory purchases for its growing customer base of neighbourhood pharmacies.
Launched in 2020 by Samuel Okwuada and Victor Benjamin, Remedial Health delivers a range of technology solutions that make it easier for healthcare providers to access affordable and genuine retail medicines, consumables and medical devices from manufacturers and distributors.
Earlier this year, it was one of the African startups that took part in the Y Combinator programme, while it also banked US$1 million in pre-seed funding. It has swiftly moved on to its seed round, led by Global Ventures – a leading MEA venture capital firm, which re-invested after participating in the previous round.
Tencent, Y Combinator, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Alumni Ventures and True Capital Management also participated in the round, which included prominent angel investors such as Guillaume Luccisano and Christopher Golda.
Remedial Health provides a range of solutions, including its digital procurement and PMR platforms that make it easier for neighbourhood pharmacies, PPMVs and hospitals to access affordable and authentic retail medicines. Healthcare providers can source vetted medications at prices the same, or better, than open-air medicine market prices – with 24-hour delivery to their practice via Remedial Health’s logistics network. In addition to procurement, pharmacies and PPMVs can access credit to fund inventory purchases and provide loans and salary advances for employees.
Since January 2022, the startup has seen 600 per cent increase in sales volumes, and it now covers 16 of Nigeria’s 36 states. This new funding will support the rollout of its services across the rest of Nigeria, and also lay the groundwork for expansion across Africa in 2023.
“Neighbourhood pharmacies and PPMVs have the potential to be the face of a thriving healthcare system in Africa, and we believe that technology can play a significant role in making this vision a reality,” said Okwuada.
“The funds that we have raised and the strategic support from our investors will enable us to deliver the solutions to address various challenges that have hampered these businesses’ growth for many years, and make it easier to safeguard lives and livelihoods across the continent for years to come.”
Sacha Haider, principal at Global Ventures, said the market opportunity to serve community pharmacies across Africa was significant.
“In Nigeria alone, 500,000 community pharmacies drive over 80 per cent of a US$70 billion market in annual pharmaceutical sales. The team at Remedial Health is proactively addressing challenges including price opacity, poor drug quality control and a very fragmented supply chain, head on to create a tech-enabled, pharmacy-centred healthcare network that has allowed over 25 per cent in cost reductions at the point of care. We are excited to partner with Sam on his mission to improve access to quality and affordable healthcare in Africa through optimized pharmaceutical supply chains,” he said.