mPharma, a Ghanaian-based startup that streamlines last-mile delivery of prescription drugs, and makes them affordable, in under-served markets, is reportedly buying Kenya’s second-largest pharmacy chain, Haltons.
The acquisition, which is still awaiting regulatory approval, is massive not just for the startup but for the entire African tech space. Once the acquisition is complete, mPharma will formally enter the East Africa regional market in what will see it partly control ownership of the 20 Haltons stores split between Nairobi and Mombasa.
Even though the startup is taking control of Haltons from Fanisi Capital, a Mauritius-based private equity firm, senior management at Haltons will still retain a stake in the business.
The terms of the deal are not public yet, but mPharma is believed to have paid a figure less than $5 million for the pharmacy chain.
As a matter of fact, such a feat shouldn’t be beyond mPharma. The health logistics startup only just secured $9.7m in an ongoing $12m Series B round in January and, at the time, had plans to grow its network of delivery points and expand to other emerging market countries.
mPharma also had plans to expand its Vendor-Managed Inventory and QualityRx platforms to over 14,000 community pharmacies in Ghana, Nigeria and Kenya.
mPharma, founded in 2013 by Gregory Rockson (CEO) and his co-founders, Daniel Shoukimas, and James Finucane, has operations currently in Ghana, Nigeria, Zambia and Zimbabwe.
Nigerian startups raised $377m in 2019, more than twice what they did in 2018. Find out more when you download the full report.