Kena Health, a South African health-tech startup, has successfully raised R41 million ($2 Million) in investment from both local and international investors. The funding includes a seed extension funding of R39 million ($1.88M) from NEXT176, an innovation subsidiary backed by Old Mutual, and an additional R1.9 million ($96.95K) from Tofino Capital, an early-stage investor based in the United States. This investment will enable Kena Health to expand its services beyond direct-to-consumer and venture into business-to-business segments. With ambitions to serve up to 75 million people across the continent, Kena Health is well-positioned to achieve its goals.
Why The Investors Invested
The decision of the investors to support Kena Health’s funding round is driven by their shared vision of creating a sustainable impact on healthcare in South Africa. Saul Kornik, the founder and CEO of Kena Health, expressed his delight in having NEXT176, an investor with a similar vision, lead the seed extension funding round. Vuyo Mpako, the founder and MD of NEXT176, expressed confidence that working with Kena Health would drive inclusion and improve access to healthcare. The investments from NEXT176 and Tofino Capital complement Kena Health’s existing backing from Cardo Health, a Swedish-based health tech investor, and a local family office.
Kena Health’s Medical App: Lowering Healthcare Costs and Expanding Access
Kena Health’s medical app, which was launched in March of last year, provides users with on-demand and scheduled consultations with healthcare professionals such as nurses, general practitioners, and mental health professionals. Patients can access a wide range of healthcare services, including medical advice, diagnoses, prescriptions, sick notes, and referrals to specialists. The consultations can be conducted through voice, text, or video communication, with each consultation priced at R185. This innovative approach aims to improve access to quality healthcare by reducing costs for people in South Africa and across the continent.
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Since its launch, the health-tech firm has already reached over 200,000 people and facilitated 25,000 patient consultations. Given that only 16.4% of South Africans are members of medical aid schemes, Kena Health’s app plays a crucial role in enhancing access to healthcare services. The seed extension funding, along with the subsequent Series A funding, will be used to expand the integration of Kena Health into the broader healthcare ecosystem. Kena Health plans to extend its distribution strategy to include business-to-business segments, partnering with employers, retail, financial services, and super apps to expand its footprint.
Saul Kornik envisions a future where Kena Health offers a broader set of clinical services and integrates into a network of healthcare providers to expand coverage and lower the overall cost of care for millions of people. The team is currently in final negotiations to conclude the seed extension funding and anticipates offering investors Series A opportunities within the coming year. The investments received by the startup reflect the growing interest and confidence in South African health-tech start-ups, highlighting the potential for positive disruption and sustainable impact in the healthcare sector.
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