- Nigerian healthtech startup, Remedial Health, has raised $4.4 million in a seed round.
- Global Ventures, Y Combinator, Alumni Ventures, True Capital Management, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Christopher Golda, and Guillaume Luccisano invested in the round.
- The startup, which helps pharmacies order and deliver pharmaceutical products, currently operates in 16 Nigerian states with plans to expand into other countries.
Remedial Health, a Nigerian healthtech startup that digitises the pharmaceutical supply chain, has announced the raise of its seed round led by Global Ventures. The $4.4 million raised in this round brings the total amount raised by the startup to $5.4 million after its pre-seed round in February 2022.
In addition to Global Ventures, Tencent, Y Combinator, Cathexis Ventures, LightSpeed Venture Partners Scout Fund, Ventures Platform, Alumni Ventures, and True Capital Management also participated in the round, which had angel investors Guillaume Luccisano, Co-Founder of Triplebyte and Socialcam and Christopher Golda, Founding Partner at Rogue Capital.
Before starting Remedial Health with his co-founder, Victor Benjamin, in 2020, Samuel Okwuada, the startup’s CEO, ran a business importing drugs into Nigeria. While running the business, he witnessed the supply chain and counterfeit challenges that led to the formation of Remedial Health.
“If you’re a Nigerian, you may be familiar with the Idumota market, the largest pharmaceutical market in the country. Medicine is typically kept in stores where temperatures are very high and products are not handled properly. This might be fine for products that are not consumables, but it’s not the ideal way for medicine.
“You’ll typically find that by the time medicine passes through this supply chain, they lose some percentage of their effectiveness. There was also the counterfeit issue, which means you have people profiting off this loophole. These are the problems we saw, and we’re all about solving them for Nigeria and then for Africa,” he told Techpoint Africa over a call.
Through Remedial Health, pharmacies can place orders and have them delivered while accessing the startup’s buy now, pay later offer. Okwuada disclosed that the startup currently operates in 16 Nigerian states with plans to expand across Africa in the coming months.
“We’re still in Nigeria for now, and we’ve grown exponentially in Nigeria. The reason we haven't entered another country is that we have not fulfilled the demand in Nigeria at the moment. We want to be pan-Nigeria first before we explore another country.”
With buy now, pay later becoming commonplace for startups like Remedial Health, Okwuada points out that their use of technology only aids the growth of an age-long practice. He also disclosed that repayment rates on the loans they have disbursed are 97.5% early repayments with another 2.5% in late repayments.
Although customers can place orders through the Remedial Health app or website, users who do not have smartphones can also place orders through a network of agents. Since January 2022, Okwuada shared that the company has seen a 600% increase in sales volumes, a development that influenced the decision to raise so soon after its pre-seed round.