Kenyan e-health startup MyDawa recently secured a significant investment of $20 million from private equity investor Alta Semper Capital. The investment aims to fuel the company’s regional expansion and enhance its product offerings. MyDawa’s vision is to transform into an all-in-one health platform, catering to the diverse needs of its users.
MyDawa plans to utilize the investment to expand its network of walk-in pharmacies and health centers, extend its technology infrastructure to telehealth services, and scale its operations by collaborating with other businesses in the health sector. The company has already secured partnerships with prominent clinic chains in Kenya, demonstrating its commitment to expanding its reach and influence in the healthcare industry.
Why The Investor Invested
The decision of Alta Semper Capital to invest $20 million in MyDawa can be attributed to several key reasons. These reasons reflect the potential and growth prospects MyDawa offers in the African digital healthcare sector:
- Promising Market Growth: The African digital healthcare market is poised for remarkable expansion in the coming years, presenting attractive investment opportunities. With an increasing focus on healthcare and growing consumer spending projected to reach $2.1 trillion by 2025, the healthcare sector becomes a key target for investors seeking to capitalize on this potential.
- Strong Business Model: MyDawa’s business model is built on innovative technology and regulatory expertise, providing a scalable platform that addresses the essential health needs of the African population. The combination of online and in-person consultations, laboratory services, and access to medication through a diverse network of pharmacies positions MyDawa as a reliable and comprehensive healthcare provider.
- Acquisition and Collaboration Strategy: MyDawa’s acquisition of Uganda’s Guardian Health and its aim to pursue more such strategic partnerships demonstrate a well-thought-out expansion plan. By acquiring established players in the region, MyDawa strengthens its position and enhances its capabilities to cater to a wider audience beyond Kenya.
- Strong Backing and Track Record: MyDawa’s previous funding rounds, including a $3 million investment from AAIC’s Africa Healthcare Fund and a $1.2 million grant from the Bill & Melinda Gates Foundation, highlight the confidence and support it has received from credible sources. This, coupled with the appointment of a new CEO, Priscilla Muhiu, with relevant experience, adds to the company’s strength and potential for success.
A Look at MyDawa
MyDawa, a Kenyan e-health startup, was founded in 2016. The company was established with the vision of revolutionizing healthcare services in Africa through its digital platform and innovative offerings. The co-founders of MyDawa, Neil O’Leary and other unnamed individuals, set out to create a comprehensive health platform that caters to the needs of users seeking convenient, reliable, and affordable healthcare solutions.
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Initially focused on e-pharmacy services, MyDawa has diversified its portfolio over time. It now offers online and in-person consultations, laboratory services, and operates an expanding network of walk-in pharmacies and health centers. The company’s diversified approach enables it to reach a broader audience and cater to various healthcare needs effectively.
In addition to its core services, MyDawa has introduced its own branded products, expanding its offerings beyond third-party medications. Moreover, the company plans to open its technology infrastructure to fulfillment, assisting other businesses in the healthcare sector to scale their operations. This demonstrates MyDawa’s commitment to promoting innovation and supporting the growth of the healthcare ecosystem in Africa.
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MyDawa’s recent acquisition of Uganda’s Guardian Health is part of its broader expansion strategy. By acquiring established entities, MyDawa aims to strengthen its market presence beyond Kenya and establish a regional footprint. The appointment of Priscilla Muhiu, formerly of Glovo Kenya, as the new CEO signals the company’s determination to bring onboard experienced professionals to lead its growth initiatives.
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