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Remedial Health, a Nigerian startup focused on digitizing pharmacies and enhancing efficiency in the pharmaceutical value chain, has raised $12 million in a Series A equity-debt funding round. The round was co-led by Fintech VC firm QED Investors and Ventures Platform, with participation from existing investors like Y Combinator, Tencent, and Gaingels. The funding includes $4 million in debt to help scale inventory financing, and it will be used to deepen Remedial Health’s operations in Nigeria.
Remedial Health’s Services and Impact
Founded by Samuel Okwuada (CEO) and Victor Benjamin (COO) in 2021, Remedial Health’s platform allows pharmacies and hospitals to order pharmaceutical products sourced from reliable manufacturers and verified distributors. This approach helps to combat erratic pricing and the supply of fake or substandard products, which have been responsible for thousands of preventable deaths in Nigeria and Africa.
According to a report by Nigeria’s National Agency for Food and Drug Administration and Control, about 15% of the medicine sold in the country is fake or substandard. Remedial Health’s platform ensures proper handling of products and contributes to reducing this alarming statistic.
Growth and Expansion Plans
Remedial Health currently serves over 5,000 pharmacies and hospitals, having tripled its client count since November of the previous year. The startup sources over 8,000 products from 300 manufacturers, including major pharmaceutical companies like GSK, Pfizer, and AstraZeneca.
The company’s inventory financing, which enables clients to restock without upfront payment, has contributed to a sevenfold growth in client count and revenues over the last 10 months. Remedial Health plans to use the new funding to increase penetration in 34 states, focusing on rural areas where demand is growing.
Embedded Financial Services Opportunities
QED Investors, one of the co-leaders of the funding round, sees significant potential in embedded financial opportunities within the pharmaceutical sector, such as payments and lending. The partnership with Remedial Health aligns with QED’s recent focus on financing services for technology-based businesses.
Conclusion
Remedial Health’s success in securing funding and its innovative approach to digitizing pharmacies and enhancing the pharmaceutical value chain demonstrate the market gap and the need for effective holistic services in the pharmaceutical sector in Nigeria. With the new funding and strategic focus, Remedial Health is well-positioned to make a significant impact in providing quality pharmaceutical products and services across Nigeria.
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