Remedial Health, a Nigerian startup digitizing pharmacies and bringing ratio to the pharmaceutical worth chain, has raised $12 cardinal Series A equity-debt funding, to standard operations successful the West African country.
Fintech VC steadfast QED Investors co-led the round, banking connected embedded fiscal opportunities similar payments, and lending successful the pharmaceutical sector. This is QED’s 3rd concern successful Africa aft its engagement successful the Moniepoint (formerly TeamApt), and Flapkap deals past year. Ventures Platform, besides co-led the round, which saw the information of existing investors similar Y Combinator, Tencent and Gaingels.
Pharmacies and hospitals usage Remedial Health’s level to bid pharmaceutical products sourced from reliable and trusted manufacturers and verified distributors. This helps to stem erratic prices, and the proviso of fake and substandard products that are down thousands of preventable deaths successful Nigeria, and Africa astatine large. It besides ensures a due handling of the products, which can’t beryllium said of the unfastened drugs marketplace successful Nigeria.
A caller study by Nigeria’s National Agency for Food and Drug Administration and Control estimates that astir 15% of the medicine sold successful the state is fake oregon sub-standard. Besides, it is estimated by the United Nations Office connected Drugs and Crime, that fractional a cardinal radical dice successful sub-Saharan Africa owing to substandard oregon counterfeit medicine.
Remedial Health gets $4 cardinal indebtedness backing to standard inventory financing
Founded by Samuel Okwuada (CEO), and Victor Benjamin (COO) successful 2021, Remedial Health plans to usage the caller backing to deepen its operations successful Nigeria. The backing includes $4 cardinal indebtedness to assistance it standard inventory financing.
Okwuada told TechCrunch that precedence astatine the infinitesimal remains connected expanding penetration successful 34 states by getting much pharmacies and hospitals signed up, particularly successful agrarian areas, wherever request is growing.
“We are seeing much maturation successful agrarian areas, due to the fact that they are hard to reach, and are acold from large unfastened cause markets successful Nigeria,” said Okwuada, adding that the startup presently has a “considerable marketplace share” successful astatine slightest fractional of the 34 of 36 states it operates successful wrong Nigeria.
The YC-alumni presently serves implicit 5,000 pharmacies and hospitals, having grown its lawsuit number by 3X since November past year. It sources the implicit 8,000 products it sells from 300 manufacturers, among them GSK, Pfizer and AstraZeneca.
Its inventory financing, which enables its clients to restock without upfront payment, has helped turn its lawsuit count, and revenues by 7X implicit the past 10 months too.
“We are a B2B concern and we are capable to supply inventory to these pharmacies without requesting currency up-front, oregon astatine the constituent of delivery… We’ve seen them turn their businesses, unfastened further branches due to the fact that they are capable to get credit,” said Okwuada.
Remedial’s level enables its customers to negociate their operations including inventory absorption (through an app too), accounting, and fiscal reporting. It besides provides real-time marketplace quality that informs manufacturers connected accumulation and distribution.
Okwuada said its customers person orders wrong 24 hours. The startup has a web of organisation hubs, dispersed crossed the regions it serves, and does last-mile transportation in-house oregon done partners. Other startups bringing ratio successful the pharmaceutical worth concatenation see MyDawa, and DrugStoc.
Commenting connected the investment, QED Investors partner, and caput of Africa, Gbenga Ajayi said successful a statement: “The occurrence that Remedial Health has enjoyed to day is an denotation of the marketplace spread that exists, and their worth successful providing effectual holistic services to thousands of pharmacies crossed Nigeria.”
“QED is peculiarly excited astir the embedded fiscal services opportunities wrong the vertical — the quality to supply payments, embedded lending and different fintech solutions to this underserved but precise important sector.”