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Nigeria’s MDaaS Global Mulls Expansion With $2.3 million Funding

July 5, 2021

MDaas Global, a Nigeria-based digital health services provider, is working towards launching a new service called SentinelX as well as expanding across the country using its latest $2.3 million funding round.

The startup builds and operates a network of modern, tech-enabled diagnostic centres across Nigeria. MDaaS (an abbreviation for “medical devices as a service”) was founded in 2017 by Oluwasoga Oni, Opeyemi Ologun, Genevieve Barnard Oni, and Joseph McCord.

Through BeaconHealth Diagnostics, MDaaS offers a wide range of services. These include imaging services such as digital x-ray and ultrasound, cardiac services such as ECG and echo, as well as lab services that range from chemistry analysis to haematology.

Since its launch, MDaaS has opened seven centres in five Nigerian cities – Ibadan, Ilorin, Osogbo, Lagos, and Abuja. It has also provided diagnostic services to over 40,000 patients in underserved communities and performed more than 80,000 diagnostics tests across cardiology, radiology, neurology, laboratory, and general health checks, according to company figures.

MDaaS Global has now secured $2.3 million in a seed extension round led by Newtown Partners via the Imperial Venture Fund. CRI Foundation, FINCA Ventures, Techstars, and Future Africa also participated in the round.

With the funding, the startup plans to publicly launch SentinelX in September 2021. According to MDaaS, the new service, which is currently in private beta, is a digital health membership that promotes preventive, personalised, and continuous care using proprietary technology.

“SentinelX combines a human touch – which is still needed – with advanced technology to provide faster, easier healthcare solutions for Nigerians. But importantly, it makes preventive care more accessible and affordable,” said Oni, who serves as the chief executive officer. “This will pave the way for lowering overall medical costs for patients as well as improving their health outcomes in the long run.”

We are very excited to announce the close of our $2.3M Seed Extension round led by @newtownpartners via the @Imperial_Logist Venture Fund! https://t.co/5Hk8fOQ4vu

The funds will also be used to help the company scale its presence across Nigeria with hopes to become the largest diagnostic chain in the country. MDaaS plans to expand to six new cities this year and by 2025, it aims to operate 100 centres across the continent and serve one million patients per year.

“Unrestricted access to quality healthcare has always been our principal objective and the pandemic has compelled us to consider innovative ways of offering more proactive care. This additional funding will propel our growth as we look to serve more people and in more ways,” Oni said.

The seed extension round brings MDaaS Global’s total funding to date to $3.7 million. It raised a million-dollar seed round two years ago, in addition to the other investments secured over the last four years.

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

South African VC Firm Leads $2.3m Investment In Nigerian Health-tech Startup MDaaS Global

July 4, 2021

South African venture capital firm, Newtown Partners, has made a remarkable inroad into Nigeria, after investing in purely Southern and East African startups. The venture capital firm has invested $2.3m into MDaaS Global, an health-tech company that is building and operating a network of modern, tech-enabled diagnostic centers across Nigeria.This is also Newtown Partners’ second investment in a healthtech startup, defying the mandate of its newly launched $20m fund for logistics companies. The investment was drawn from the VC’s Imperial Venture Fund. And joining the firm are other investors: CRI Foundation, FINCA Ventures, Techstars, and Future Africa, among others. Although not Newtown Partners’ first entry into Nigeria (having previously invested in Flutterwave), investment into MDaaS is significant because it toes away from the regular route of fintech.

The company will use the funds to develop ‘SentinelX,’ a digital health membership that promotes preventive, tailored, and continuous care through proprietary technology. MDaaS Global’s total capital to date is $3.7 million; in addition to the introduction of SentinelX, this new funding will allow the company to rapidly extend its physical footprint across Nigeria, allowing it to become the country’s largest diagnostic chain.

Why The Investors Invested

The investment came mostly because of the traction the startup has generated.

The healthcare company has given diagnostic services to over 40,000 patients in underprivileged locations to far, and has grown its employee capacity to over 70 since its seed financing in 2019. Over 80,000 diagnostic tests in cardiology, radiology, neurology, laboratory, and general health checks have been performed by the company.

MDaaS has also worked with over 500 health facilities and ten HMO networks, bringing its referral network to over 750 physicians. By 2025, the business hopes to have 100 locations across Africa, serving 1 million patients each year.

“Most consumers in sub-Saharan Africa receive suboptimal medical care because of infrastructure gaps, low physician density, delays in diagnostics, and a lack of health data visibility. We think the physical diagnostic infrastructure that MDaaS is building out, coupled with the means to collect data and deliver value-added software services, has the potential to completely.. change the way that physicians, clinicians and pharmacists do their jobs and lead to better health outcomes for a huge number of previously underserved consumers,” Llew Claasen, Managing Partner at Newtown Partners believes.

A Look At What The Startup Does

MDaaS Global, founded in 2017 by Oluwasoga Oni, Opeyemi Ologun, Genevieve Barnard Oni, and Joseph McCord, has opened seven facilities in Ibadan, Ilorin, Osogbo, Lagos, and Abuja, with plans to open six more in 2021.

“For many years, healthcare in Nigeria and across Africa has been focused almost exclusively on treating diseases rather than preventing them in the first place. Access to diagnostics and preventive care is key to addressing the burgeoning NCD crisis; through SentinelX, we aim to leverage our expertise in affordable diagnostics and put the ‘health’ back in healthcare for Africa’s next billion,” Oluwasoga said.

MDaaS Global has worked to provide access to important diagnostic services for underserved and geographically challenged communities since its inception. SentinelX expands on that purpose by democratizing access to comprehensive preventive care, which helps members identify and address health hazards before they become problems. SentinelX is a subscription-based annual membership that costs N35,000 [about $70 per month].

What Does 2021 Hold In Store For African Startups?

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