In a significant move into the healthtech sector, Egypt-based investment fund management company Ezdehar has acquired a minority stake in Yodawy, a pioneering medical technology company, for a substantial $10 million. The investment represents a strategic initiative by Ezdehar to venture into the healthtech domain, aligning with its commitment to support startups through its Mid-Cap Fund II.

Yodawy, founded in 2018 by Karim Khashaba, Yasser Abdel Gawad, and Sherief El-Feky, has made a mark in the industry with its innovative healthcare platform. The company offers a comprehensive marketplace where patients can seamlessly process prescriptions and place online orders for medicines. Additionally, Yodawy plays a crucial role in connecting patients with medical labs and insurance companies, thereby streamlining the healthcare experience.

This investment, facilitated by Ezdehar’s Ezdehar 2 mid-cap fund, is anticipated to be a game-changer for Yodawy. The funds will be instrumental in supporting the company’s ambitious growth plans, including expanding its customer base and enhancing its technology-enabled prescription fulfillment capabilities. The overarching goal is to create more value in the healthcare services market and solidify Yodawy’s position as a key player in the digital health landscape in Egypt.

CEO of Yodawy, Karim Khashaba, expressed his enthusiasm for the collaboration, stating that the company aims to address the main challenges in the healthcare sector and fortify its standing in the digital health field in Egypt. Khashaba highlighted Yodawy’s collaborations with insurance companies and healthcare service providers, emphasizing the commitment to improving patient access and experience.

Yodawy currently serves approximately 35 health insurance and healthcare service companies, with contracts spanning over 800 companies, 20 hospitals, and 30 clinics in the market. The company has forged partnerships with 3,000 pharmacies, providing services for both chronic and non-chronic conditions across Egypt. Since its establishment, Yodawy has successfully delivered more than 6 million prescriptions, showcasing its significant impact on the healthcare landscape.

Amir El-Sharqy, General Manager of Ezdehar, commended Yodawy for identifying and seizing an untapped opportunity in the prescription and delivery sector. He acknowledged the effectiveness of Yodawy’s model in serving both patients and healthcare providers in the market.

Ezdehar’s investors include esteemed international institutions such as the European Bank for Reconstruction and Development, the European Investment Bank, the BAE Group, the Netherlands Development Bank, the International Finance Corporation, the Egyptian-American Enterprise Fund, and the Belgian Investment Company for Developing Countries. Additionally, a group of Egyptian investors from banks and other investment entities contribute to Ezdehar’s robust investment portfolio.

The collaboration between Ezdehar and Yodawy is poised to make significant strides in the digital healthcare space, reflecting the continued evolution of the Egyptian healthtech landscape.

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.