Adaverse Backs Nigerian Product Authentication Startup Chekkit In New Funding

chekkit

In a world where counterfeit products run rampant, Nigerian startup Chekkit is stepping up to the plate to tackle the issue head-on. The company has just secured additional funding to scale its blockchain-powered drug safety and tracking solution, which promises to revolutionize the way products are tracked from warehouse to consumer.

Chekkit was formed at the Meltwater Entrepreneurial School of Technology (MEST) in Accra, Ghana back in 2018. Since then, it has built a platform that tracks product movement and the parties involved in the transfer of products from warehouse to distributor, and on to the final consumer. Using tamper-proof unique ID labels in the form of QR codes or numeric codes, Chekkit can provide end-to-end serialisation and traceability for products, making it a powerful tool for combatting counterfeiting.

So far, the startup has helped secure over 50 million pharmaceutical and consumer goods products, and its growth is set to continue after Nigeria’s National Agency for Food and Drug Administration and Control (NAFDAC) announced that pharmaceutical products would be mandated to implement end-to-end serialisation and traceability from the end of 2024.

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To take advantage of this opportunity to scale, Chekkit has raised an undisclosed round of funding from Adaverse, a Cardano ecosystem accelerator, as well as existing investors like RTA, HoaQ, Launch Africa Ventures, and Blockchain Founders Fund. This funding will help Chekkit onboard more manufacturers across Nigeria and other regions in Africa, while also expanding to new markets in India, the UK, and the Middle East.

In addition to this, Chekkit has partnered with SAP, enabling pharmaceutical brands that already use SAP’s Advanced Track and Trace Platform to collect and analyze last-mile patient data. The company has also integrated the GS1 global standards system, making its serialization software regulatory compliant in over 100 countries globally.

Chekkit Adaverse
Source: Chekkit

“We are currently exploring opportunities to optimize and strengthen supply chains for other African and Middle Eastern regions through partnerships with major pharmaceutical donors, manufacturers, governments, and the United Nations Development Programme (UNDP),” said Dare Odumade, Chekkit’s CEO. “We are focusing a side of the business on fixing the public pharmaceutical supply chains of these low to middle-income earning countries.”

Vincent Li, founding partner at Adaverse, is excited about the potential of Chekkit’s solution. “Rather than just another anti-counterfeiting solution, Chekkit aims to repair the prevailing rift in consumer-manufacturer trust with the blockchain-secured channel, prioritizing consumer insights,” he said. “We see the potential to transform the supply chain industry and disrupt the DataFi market and we’re excited to support the scaling of Chekkit’s infrastructure.”

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With its innovative solution and strong partnerships, Chekkit is set to make a significant impact on the fight against counterfeiting and improve the safety and security of products for consumers around the world.

.Chekkit Adaverse Chekkit Adaverse

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

Anti-Counterfeiting Startup Chekkit to Expand Operations in Pharma and FMCG Industries

Chekkit, the Nigerian anti-counterfeiting startup has announced new funding to help it expand its operations within the pharmaceutical and FMCG industries. The first of its kind platform which was established at the Meltwater Entrepreneurial School of Technology (MEST) in Accra, Ghana, has built a platform that tracks product movement and the parties involved in the transfer of products from warehouse to distributor, and on to the final consumer.

Chekkit chief executive officer (CEO) Dare Odumade
Chekkit chief executive officer (CEO) Dare Odumade

Essentially, Chekkit is an anti-counterfeiting, asset tracking and consumer feedback analytics tool. It produces tamper-proof unique ID labels, either as QR codes or numeric codes, which can be placed on premium packaged food and beverage products for supply chain and consumer feedback tracking.

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The startup, which began operations in Afghanistan last year, has just closed a pre-seed funding round of US$500,000 from Launch Africa, Japan Strategic Capital, Blockchain Founders Fund, and two syndicate groups of angel investors. It also includes a grant from the Orange Corners programme.

So far, Chekkit has secured over seven million pharmaceutical products and protected over 200,000 consumers, working with pharmaceutical companies like Merck, Royal Star Pharma and Nabros Pharmaceutical. The funding is to further expand its reach in this sector, as well as in the FMCG space, where it already works with brands including Indomie, Nivea and Flourmills of Nigeria.

Read also:The Role Mobile Technology Plays in Africa

“We are super-pumped about the future as we develop unique technological products to protect the lives of millions and also directly improve the act of doing business for several brands by learning about consumers in the largely informal African markets,” said Chekkit chief executive officer (CEO) Dare Odumade.

“We will be launching the first consumer intelligence software-as-a-service for consumer brands to create end-to-end loyalty campaigns, aggregate engagement data and distribute rewards in-house and with their marketing agencies for the first time ever, enabling consumers to directly interact with brands through QR and USSD shortcodes printed directly on the product package.”

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Biola Alabi, co-leader of one of the angel syndicate groups, said investing in Chekkit was a “no brainer”.

“They are tackling the scourge of fake drugs in Nigeria and across emerging markets globally. One of the biggest challenges still facing the pharmaceutical and healthcare systems in Africa is fake and substandard drugs, weak regulatory environments and lack of consumer education.  Fake and substandard drugs are responsible for thousands of deaths annually across Africa,” she said.

“Chekkit is already working with governments to strengthen and heighten pharmacovigilance, patient education and advocacy. The application is saving lives by simultaneously detecting and notifying consumers, manufactures and policy makers from the minute fake or substandard drugs are detected. I’m excited that the company is building and using blockchain to build out its solution. Chekkit, with an experienced team, local and global traction, is poised to save more lives and I’m proud to be an investor and lead a team of other investors to build.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigerian Anti-counterfeit Startup, Chekkit, Raises $500k Pre-seed Funding

Chekkit Technologies, a Lagos-based drug anti-counterfeit startup, has announced the close of their first institutional investment, a $500,000 pre-seed round that included Launch Africa, Japan Strategic Capital, Blockchain Founders Fund, and two syndicate groups of angel investors. The round was completed with a grant from the Orange Corners initiative.

Dare Odumade, CEO of Chekkit.
Dare Odumade, CEO of Chekkit.

“We are super-pumped about the future as we develop unique technological products to protect the lives of millions and also directly improve the act of doing business for several brands by learning about consumers in the largely informal African markets,” Dare Odumade, CEO of Chekkit.
“We will be launching the first consumer intelligence software-as-a-service for consumer brands to create end-to-end loyalty campaigns, aggregate engagement data and distribute rewards in-house and with their marketing agencies for the first time ever, enabling consumers to directly interact with brands through QR and USSD shortcodes printed directly on the product package.”

The cash will be used for product development, as well as expanding their existing anti-counterfeiting and consumer interaction solutions and developing comprehensive supply chain tracking and infrastructure optimization technologies. “The funds raised will enable us to directly protect up to 100 million lives across the globe,” the firm added in a statement. “To achieve this, we’ll be growing our team of innovators with like-minded and innovative individuals to join us on this noble journey.”

According to a statement from the startup, Biola Alabi, co-leader of one of the angel syndicate groups, would be joining Chekkit’s advisory board. The startup said she would be “bringing in years of experience in media and communications as well as industry-related know-how as she currently serves as a non-executive director at Unilever Nigeria Plc”.

Why The Investors Invested

“Investing in Chekkit Technologies was a no brainer, they are tackling the scourge of fake drugs in Nigeria and across emerging markets globally, one of the biggest challenges still facing the pharmaceutical and healthcare systems in Africa is fake and substandard drugs, weak regulatory environments and lack of consumer education. Fake and substandard drugs are responsible for thousands of deaths annually across Africa,” Alabi said.

Read also:The Role Mobile Technology Plays in Africa

“Chekkit is already working with governments to strengthen and heighten pharmacovigilance, patient education and advocacy. The application/platform is saving lives by simultaneously detecting and notifying consumers, manufacturers and policy makers from the minute fake or substandard drugs are detected. I’m excited that the company is building and using blockchain to build out its solution. Chekkit with an experienced team, local and global traction, are poised to save more lives and I’m proud to be an investor and lead a team of other investors to build,” she added. 

A Look At What The Startup Does

Founded in 2018, Chekkit Technologies is a Nigeria-based software company that provides product identification and distribution tracking solutions to FMCG and pharmaceutical companies. Their solution helps people avoid purchasing or using counterfeit goods.

Chekkit has helped consumers and manufacturers in Nigeria and Afghanistan protect themselves from the dangers of counterfeit products in recent years by providing consumers with a way to identify genuine products. This has resulted in the security of over 7 million pharmaceutical products, the protection of over 200,000 consumers, and the expansion of their relationship with the Afghan government for the verification and tracking of over 200 million products in the Middle East. Working with pharmaceutical businesses such as Merck, Royal Star Pharma, and Nabros Pharmaceutical, they were able to accomplish all of this.

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They’ve also helped consumer products companies like Indomie, Nivea, and Flourmills of Nigeria Plc use Chekkit’s point-of-sale consumer interaction technology to reach closer to their customers. These firms, according to Chekkit, have been able to optimize their promotions, loyalty programs, and acquire important insights directly from their customers through smart intuitive surveys.

They installed a COVID-19 engagement solution in conjunction with the African Union and the AfricaCDC, and we are continually engaging with regulatory and standardisation agencies like NAFDAC, GS1, and the FCCPC to ensure that the products utilized are safe and of the highest standards for consumption.

Chekkit counterfeit Chekkit counterfeit

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Nigerian Startup Deploys Services in Afghanistan

Nigeria based Chekkit Technologies, a startup that offers product verification, anti-counterfeiting solutions, announced that it secured a partnership to roll out its tech in Afghanistan.

 Chekkit Co-founder Dare Odumade
Chekkit Co-founder and CEO Dare Odumade 

Founded in 2018 by Dare Odumade and Oluwatosin Adelowo, Chekkit claims to protect manufacturers and consumers against food and drug counterfeits.

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With Chekkit, consumers can verify products by scanning barcodes or using USSD for confirmation. Similarly, the company provides insights on consumers back to the manufacturers where they can choose to act on it by using rewards and loyalty programmes or upsell/cross-sell to customers.

Odumade, CEO of the startup says that the company has been in talks with major players in the Nigerian health space to run a pilot for a while. Right now, it is currently involved in the NAFDAC serialisation plans for pharmaceuticals through collaborations with GS1 Nigeria, the non-profit organisation behind the authorised GS1 barcodes. However it’s in Asia the company is getting its first big break.

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In November 2019, Chekkit finished the first runner up in a blockchain pitch competition at the AfricArena Summit. The competition was sponsored by Fantom, a DAG-based smart contract platform that was already in talks with the Ministry of Health in Afghanistan to help the country with its pharma product counterfeiting problem.

After the event, the ministry signed an MoU with Fantom and Chekkit for a 3-month pilot project that will see Chekkit’s product being used to track and verify 80,000 pharmaceutical products sold in the country.

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“Through this partnership, we will provide the pharma companies involved with valuable consumer insights and a reward program to encourage purchase and verification by buyers. We will also give the government/ministry a transparent view of the pharmaceutical market. On completion of a successful pilot, we envisage our technology being deployed across the board for all meds coming into Afghanistan,” the CEO says.

Last year, the company took part in the FB Start Accelerator, a programme known to back deep-tech companies in Nigeria and Ghana. Since then, Odumade claims the company has grown more than 1,200% in revenue and has done over 100,000 consumer authentications.

Similarly, the team has raised over $100,000 in grants and with such financial backing, Odumade says the company has more projects in its pipeline.

“Expect us to launch new products that tackle issues along the supply chain like theft, transparency, counterfeiting and consumer safety. We started with USSD authentications for consumers and an intelligence system for brands, while we just launched our PWA and app for scan authentications. In the near future we will further launch products for track and trace automation and real-time cargo tracking.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

What Chekkit ’s Expansion To Afghanistan Is Teaching African Startups About Scaling Beyond Africa

Barely 2 years old, Nigeria-based blockchain-powered anti-counterfeiting startup, Chekkit is no longer on the same pedestal with its founding class. In a world filled with unstoppable opportunities, Chekkit is repeating what the San Fransisco-headquartered Zipline is doing in Rwanda and Ghana, but in a different way. The difference is, however, never in the ambition but in the products offered. While Zipline, in a $12.5 million deal with the Ghanaian government, flies series of drones over Ghana’s airspace, delivering essential healthcare services to Ghanaians in need of them, Chekkit has a new impetus in Afghanistan, the famously war-torn country. 

Dare Odumade, co-founder and chief executive officer (CEO) of Chekkit
Dare Odumade, co-founder and chief executive officer (CEO) of Chekkit

“The Afghan Ministry of Public Health had been looking for effective ways to verify the authenticity and effectiveness of drugs that are being imported into the country,” said Dare Odumade, co-founder and chief executive officer (CEO) of Chekkit about a new partnership between the Afghan Ministry of Public Health and Chekkit. “ Chekkit has provided them with a way to authenticate the drugs at the point of entry into the country and also at point of purchase.”

The magic of the partnership is however not in any extra bogus statements further disclosed in the press release about the deal, such as this by Odumade: 

“Through this partnership, we will provide the pharma companies involved with valuable consumer insights and a reward programme to encourage purchase and verification by buyers, as well as give the government a transparent view of the pharmaceutical market. On completion of a successful pilot, we envisage our technology being deployed across the board for all meds coming into Afghanistan.”

The magic lies in the fact that unlike Zipline — with its US coloration and pride — Chekkit is defying odds and the not-so-shiny image of its home country, Nigeria, to establish roots in a country outside of Africa. 

First, A Look At The Partnership Deal

With the new partnership, Chekkit becomes Africa’s first healthtech startup to gain foot in South Asia. Under the terms of the new partnership, which begins with a three-month pilot, Chekkit will utilise its product authentication technology to track and verify all drugs sold in the country. Chekkit’s smart labels will be attached to 80,000 pharmaceutical products sold in the Afghan market, allowing for verification of these drugs before purchase or use. Chekkit will also provide an oversight capability for the Health Ministry by deploying special hand-held devices that can be used to verify the authenticity of the products at the point of entry into the country. 

Birthed in 2018, at the Meltwater Entrepreneurial School of Technology (MEST) in Accra, Ghana, Chekkit’s platform tracks product movement and the parties involved in the transfer of products from warehouse to distributor, and on to the final consumer. The company also produces tamper-proof unique ID labels, either as QR codes or numeric codes, which can be placed on premium packaged food and beverage products for supply chain and consumer feedback tracking.

Although Chekkit could pride itself as being the first African healthcare startup in Afghanistan, the credit for its entry into the country will go to Fantom, a network of blockchains that provides ledger services to businesses and applications, based in Seoul, South Korea. This is because Chekkit’s solution is deployed on Fantom’s DAG network, and although talks with the Afghan government were already initiated by Fantom, Chekkit’s latest partnership deal also has Fantom as a co-signatory.

A Look at the Chekkit App

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S/NAfrican Startups With Expansion Outside AfricaName Of Countries Expanded ToPurpose Of ExpansionRemarks
1JumiaUSAIPO (Ecommerce) 
2SWVLPakistanBus-hailing 
3FlutterwaveUS, UKAfrica-focused cross-border paymentNot physically present in the listed countries. Working in partnerships with other foreign payment companies.
4LidyaPoland, Czech Republic.Digital Lending 
5MigoBrazilDigital lending 
6PagaUSA; UK; France; Germany; UAE; Bahrain; Portugal; Australia; Belgium; Spain; Italy; Canada; Ireland; New Zealand; Sweden; Norway; Slovakia    Africa-focused cross-border paymentNot physically present in the listed countries. Working in partnerships with other foreign payment companies.
7ClickPesaUKAfrica-focused cross-border payment.Working in partnerships with other foreign payment companies.
8EntersektUS, UK, Bavaria, Netherlands.Payment security app 
9FlexclubMexicoRide-hailingWorking in partnership with Uber
10MintricsUSSocial video analytics 
11AeroboticsUS, Spain, AustraliaAgribusiness 
12Branch InternationalBrazil, IndonesiaDigital lending 
13WakanowU.A.E, UKTravel 
14JumoPakistanFinancial services 
15LunoMalaysia, Indonesia, SingaporeCrypocurrency 
16MdundoDenmarkIPO (Music Streaming) 
17ChekkitAfghanistanHealthcare 
African startups and their countries of expansion outside Africa *Facts are not exhaustive

Africa-made To The World

Chekkit’s inroad into Afghanistan has confirmed that African startups can make inroads into offshore countries if they worked harder and with the right network, collaboration and resilience. Few African startups have been able to achieve this feat. Although Jumia, the Africa-focused ecommerce company, had shot the continent’s startup ecosystem into international fame on the New York Stock Exchange last year, the company has no immediate plans to launch operations in the US. Again, although Egypt’s e-hailing startup SWVL has expanded to territories outside the shores of Africa, it has not yet gone beyond South Asia, or Middle East And North African region where it has some nuanced belonging. Cross-border payment startups such as Flutterwave, Paga and others are only focused on African remittances or African merchants doing business across borders. A higher level of global connectedness will therefore help African startups integrate into the global fabric, thereby raising their level of performance. Chekkit is one of the few that have proved that this is achievable. 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer