Caafisom, a healthtech startup based in Hargeisa, the capital city of Somaliland, has secured $110,000 in funding. The investment round was completed in May and was led by Tofino Capital, a US-based venture capital fund, and the locally based Takeoff Fund.
With the funding, Caafisom plans to increase its workforce, expand its operations, and register more users.
Reasons for Investment
The investors’ decision to invest in Caafisom can be attributed to several key factors. The potential for growth and profitability in the healthtech sector is a major driving force. As a startup that provides software and logistics services for digitizing health records, Caafisom addresses a critical need in the healthcare industry. The demand for efficient and accessible healthcare services is increasing, and the digitalization of medical records can greatly enhance the efficiency and quality of patient care. The investors recognize this market opportunity and believe in the potential for Caafisom’s technology to revolutionize healthcare in Somaliland and beyond.
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Caafisom’s track record and operational success also played a significant role in attracting investors. The startup is already operating in multiple hospitals across the country, demonstrating its ability to deliver its services effectively. With an average of 400–500 new users daily, Caafisom has established a growing user base, indicating a positive market response to its offerings. The investors have confidence in the startup’s ability to scale its operations and achieve further success in the healthcare sector.
The entrepreneurial and educational background of Caafisom’s co-founder, Mohamed Ismail Ahmed, and the support of a reputable law firm, AQM, helped instill investor confidence. Ismail graduated from Middlesex University in the United Kingdom and returned to Somaliland to launch Caafisom. His expertise and commitment to the startup’s mission are crucial factors that investors considered. Furthermore, AQM, led by Amal Ali, a lawyer who studied in the UK, provided legal services to address concerns related to the political and legal environment in Somaliland. The collaboration with a reputable law firm reassured investors and facilitated the investment process.
A Look at Caafisom
Caafisom, founded in 2021 by local entrepreneurs, aims to revolutionize healthcare in Somaliland through its software and logistics services for hospitals. Caafisom, founded in 2021 by local entrepreneurs, offers software and logistics services for hospitals to digitize patients’ health records. Their in-house app allows users to book doctor appointments, access medical records, and consult with health experts.
The startup currently operates in multiple hospitals across the country, including Hargeisa Neurology Hospital and Needle Hospital in Hargeisa, and attracts an average of 400–500 new users daily.
The startup’s primary markets are located in Somaliland, specifically in the capital city of Hargeisa. However, Caafisom has ambitious expansion plans. In the short term, the company intends to expand its operations to neighboring Somalia, followed by a broader expansion across the Horn of Africa. Caafisom plans to open new offices in Mogadishu and Garowe in Somalia and Addis Ababa in Ethiopia, with further expansion into Djibouti, Kenya, Sudan, and Tanzania within the next six months.
The arrival of Caafisom represents a diversification of Somaliland’s agriculture-dominated economy. Traditionally, over 60% of Somaliland’s exports have been live animals, primarily destined for Gulf Arab countries. However, with Caafisom’s entry into the healthtech sector, there is potential for technological innovation and economic growth in the country.
A Country Battling with Lack of International Recognition
Jesse Clain, CEO of the Take Off Fund, expressed his perspective on the international recognition issue in Somaliland. He emphasized that despite the absence of formal recognition, Somaliland operates as an independent entity in all practical aspects.
Clain further noted that some institutions are hesitant to invest in Somaliland due to political reasons or concerns about investing in low-income countries. This observation highlights the challenges faced by startups in attracting international investment due to the political uncertainties surrounding Somaliland’s status.
As the CEO of the Take Off Fund, who has relocated from San Francisco to Somaliland, Clain believes in the promising startup ecosystem of the region. Through the establishment of the Take Off Fund, he aims to boost the growth and development of the local startup ecosystem, recognizing the untapped potential and opportunities within Somaliland.
Since its separation from Somalia in 1991, Somaliland has remained unacknowledged by foreign powers, hampering its ability to assert sovereignty and attract international investors. This lack of recognition poses significant challenges in terms of garnering attention and securing support on the global stage.
Caafisom funding Caafisom 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