Nigerian Company Remedial Health Secures $12 Million in Financing to Assist Neighbourhood Pharmacies

Nigerian Company Remedial Health Secures $12 Million in Financing to Assist Neighbourhood Pharmacies

By Staff Writer, 10 October 2023

Remedial Health, a healthcare company, secured $12 million in a funding round involving equity and debt to expand its services in Nigeria and provide targeted financial support for growth in the country's pharmaceutical sector.

In Africa, 85% of retail medicine purchases occur at micro-enterprises, including local pharmacies and Proprietary Patent Medicine Vendors (PPMVs).

These store owners face challenges in sourcing 90% of their wholesale purchases from inadequate open markets, enduring costly and time-consuming weekly order cycles that can take up to two working days.

These operational hurdles, compounded by a primarily paper-based approach, impede profitability.

Nigerian startup Remedial Health addresses these issues by integrating healthcare, supply chain management, technology, and financial services, providing a digital procurement infrastructure to enhance healthcare distribution for Africa's 1.2 million pharmacies.

The $12 million funding comprised an $8 million Series A equity round led by QED Investors and co-led by Ventures Platform, a consistent investor since the pre-seed stage.

Y Combinator, Tencent, and Gaingels also invested after participating in previous rounds.

Additionally, it encompassed a $4 million debt funding led by a group of local and international financial institutions.

The funds will enable Remedial Health to broaden its services across Nigeria and implement innovative solutions to enhance efficiency in the pharmaceutical value chain, aligning with their mission of a tech-enabled healthcare network.

Remedial Health's CEO Samuel Okwuada expressed enthusiasm for utilizing the funds to further their goals despite economic challenges. "We are delighted to have raised these funds, particularly with the wider context of the global funding downturn and the wide range of economic headwinds in Nigeria. Our continued growth has put us in a strong position to deliver our mission of creating a tech-enabled, pharmacy-centred healthcare network and we are looking forward to leveraging these funds to achieve more success."

(Abhinaya Prabhu / Tech Funding News)

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