Remedial Health secures $12m to provide financial services for neighbourhood pharmacies
Remedial Health, a Nigerian health tech firm, has created a solution that aims to improve the effectiveness of the pharmaceutical value chain in Africa. As of right now, the firm has raised $12 million in equity.
In Africa neighbourhood pharmacies and proprietary patent medicine vendors (PPMVs), which are microbusinesses, account for 85% of retail drug purchases. 90% of store owners’ wholesale purchases are made in public markets, most of which are unsuited for the selling of food and medicine. In order to get the goods they need to stock their shelves, store owners must suffer pricey and time-consuming weekly order cycles that normally last two working days. These facts, along with a method of managing operations that relies primarily on paper, create a number of difficulties that limit profitability.
Remedial Health, a Nigerian health tech firm, has created a solution to this problem that aims to improve the effectiveness of the pharmaceutical value chain in Africa. To further its service penetration in Nigeria and enable the supply of tailored financial services to help business growth across the nation’s pharmaceutical sector, the firm has now raised $12 million in an equity and debt fundraising round.
The $8 million Series A equity investment was co-led by US fintech VC companies QED Investors and Ventures Platform. Since the pre-seed stage, the two have now contributed to Remedial Health’s fundraising at each subsequent round. Additionally, this investment is the first Series A investment made by Ventures Platform. Following their involvement in earlier rounds, Ycombinator, Tencent, and Gaingels all made investments. A group of national and international financial institutions took the lead in arranging the $4 million in loan financing.
“Given the wider backdrop of the global finance crisis and the diverse spectrum of economic challenges in Nigeria, we are thrilled to have secured these monies. We are excited to use these funds to further our aim of building a tech-enabled, pharmacy-centered healthcare network because our sustained development has put us in a good position to do so. Remedial Health’s CEO and co-founder, Samuel Okwuada, remarked.
Remedial Health provides the digital procurement infrastructure needed to support efficient healthcare distribution for Africa’s 1.2 million pharmacies at the nexus of healthcare, supply chain management, technology, and financial services.
Beginning in Nigeria, Remedial Health has developed an efficient operating system for pharmaceutical buyers and suppliers, working with more than 300 manufacturers and providing services to more than 5,000 hospitals, pharmacies, and PPMVs throughout 34 of Nigeria’s 36 states. Regional hubs have been established to facilitate a seamless experience throughout the entire nation.
With same-day delivery and inventory financing, store owners get access to more than 8,000 carefully screened products, minimising cash-flow friction for routine orders and maximising sales potential. Additionally, the start-up offers facility finance, payment options, and inventory management services to help store owners operate their operations more effectively and efficiently. Remedial Health offers pharmaceutical manufacturers a successful path to market for their goods as well as data-driven perceptions of regional markets that can be used for better planning and decision-making.
Remedial Health will be able to deliver more game-changing solutions to boost efficiency throughout the pharmaceutical value chain and expand the reach of these services across Nigeria thanks to this increased investment.
