Nigeria’s health-tech startup, Remedial Health, has raised $12 million in Series A funding, comprising $8 million equity and $4 million debt.
The company disclosed that the fund would be deployed to scale up its operations in Nigeria, facilitate the delivery of targeted financial services and support its beneficiaries in the pharmaceutical sector.
Similarly, Remedial Health, which is digitizing pharmacies and bringing efficiency to the pharmaceutical value chain, stated that it would also deploy part of the fund to rev up its penetration in the 34 states it is currently operating in the country by getting more pharmacies and hospitals signed up, especially in rural areas, for pharmaceutical services.
The management stated that the $8 million Series A equity funding round was led by US-based venture capital firm, QED Investors and co-led by Ventures Platform, which has invested in Remedial Health at every funding round since the pre-seed stage.
While the latest investment represented Ventures Platform’s first Series A investment, Ycombinator, Tencent and Gaingels also invested in it after participating in previous rounds. The $4 million debt funding was led by a consortium of local and international financial institutions.
Speaking on the successful fundraising round, the CEO and Co-founder of Remedial Health, Samuel Okwuada, explained: “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”, he added.
In his remarks on the equity funding round, QED Investors Partner and Head of Africa, Gbenga Ajayi, said: “The success that Remedial Health has enjoyed to date is an indication of the market gap that exists, and their value in providing effective holistic services to thousands of pharmacies across Nigeria.
“QED is particularly excited about the embedded financial services opportunities within the vertical the ability to provide payments, embedded lending, and other fintech solutions to this under-served but very crucial sector”, Ajayi stressed.
Commenting on the funding initiative, Founding Partner of Ventures Platform, Kola Aina, enthused: We are incredibly proud to have been part of Remedial Health’s journey since the earliest phase of the company’s development. This partnership exemplifies our mission to support category leaders before they become obvious.
“Remedial Health’s dedication to improving Nigeria’s pharmaceutical value chain is critical and their success in securing this $12 million funding demonstrates their remarkable growth and the management’s tenacity over the years.
“Our investment in this round represents our continued belief in their mission to deliver financial services to neighbourhood pharmacies and drive deeper growth in the pharmaceutical sector”, he added.
