Why Leading Investors Poured $4.4M Into Nigerian Health-tech Startup Remedial Health

Remedial Health, a health technology startup based in Nigeria, recently secured seed funding in the amount of $4.4 million in order to expedite its spread throughout the nation.

Global Ventures, Tencent, Y Combinator, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Alumni Ventures, True Capital Management, and famous angel investors such as Guillaume Luccisano and Christopher Golda contributed to the fundraising backing.

Samuel Okwuada, CEO and co-founder of Remedial Health

This additional finance will help the growth of its services throughout the remainder of Nigeria and set the stage for a 2023 expansion beyond Africa.

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The startup will also be able to supply its expanding client base of neighbourhood pharmacies, Proprietary Patent Medicine Vendors (PPMVs), and hospitals across the nation with access to credit for inventory purchases with the assistance of the additional cash.

“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,” Samuel Okwuada, CEO and co-founder of Remedial Health, said.

Why The Investors Invested

The startup has gained significant traction since its inception. Remedial Health’s revenues have increased 600% since January 2022, and the firm currently operates in 16 of Nigeria’s 36 states. 

“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,” Sacha Haider, Principal at Global Ventures, said. 

A Look At What The Startup Does

Remedial Health was founded in 2021 to serve neighbourhood pharmacies and PPMVs, which sell 80% of Africa’s retail pharmaceuticals.

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Remedial Health’s digital procurement and PMR systems help pharmacies, PPMVs, and hospitals get economical and authentic retail pharmaceuticals.

Remedial Health’s logistics network delivers verified drugs to doctors’ offices within 24 hours at pricing comparable to open-air markets.

Pharmacies and PPMVs can use credit for inventory purchases, employee loans, and salary advances.

The COVID-19 pandemic and growing inflation have increased the price of medications in Nigeria during the previous three years.

Neighborhood pharmacies and Proprietary Patent Medicine Vendors (PPMVs), the major source of medications for most Nigerians, are under increasing pressure to supply lifesaving medicines to their communities and operate their operations successfully.

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An opaque supply chain where manufacturers have little or delayed visibility into the frontlines implies pharmacies and PPMVs must frequently make due with what they can acquire rather than what they need.

By using Remedial Health’s tech-enabled platform, pharmacies, PPMVs, and hospitals may benefit from group/bulk buying discounts, time savings, enhanced efficiency, access to finance to improve revenues, and additional income from offering financial services and other primary healthcare services.

Manufacturers benefit from an efficient supply chain, a clear and quick route-to-market, and real-time product usage analytics to optimise forecasting, manufacturing, and distribution decisions.

Remedial Health funding Remedial Health funding

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexpert