MDaaS Global, a Nigerian tech-enabled diagnostic firm has raised $1 million seed funding to scale in Nigeria and replicate its innovative diagnostic center business model in West Africa over the next five years.
The funding round was led by Consonance Investment Managers, with participation from Techstars and FINCA Ventures and will enable the firm to open 100 additional centers in Nigeria and expand across West Africa.
In a statement, MDaaS Global’s CEO and Co-Founder Oluwasoga Oni said, “This funding round fuels our next phase of growth, allowing us to continue providing modern, connected healthcare for Africa’s next billion. With diagnostics as the bedrock of modern medicine and key to the treatment of diseases like cancer, heart disease, and diabetes – which are on the rise within the continent – unbridled access to quality healthcare is crucial.”
Merging its brick-and-mortar patient care with state-of-the-art technology, MDaaS Global was founded in 2016 by Oluwasoga Oni, Opeyemi Ologun, Genevieve Barnard Oni, and Joseph McCord and has served over 9,000 low- and middle-income patients in the country.
The firm was incubated at MIT’s Legatum Center for Development and Entrepreneurship and was part of the inaugural Techstars Impact class of 2018. MDaas launched its flagship diagnostic center in Ibadan, Nigeria’s 3rd most populous city, in November 2017 under its patient- and physician-facing brand BeaconHealth.
The firm’s diagnostic services target low- and middle-income sub-Saharan Africans, starting with Nigeria’s 130 million low- and middle-income patients using its vertically-integrated supply chain and tech platform.
From simple malaria tests to echocardiograms and pap smears at just $4, MDaaS has partnered with over 60 referring health facilities, hospitals and clinics as well as corporates, Health Maintenance Organizations (HMOs), and developmental organizations in Nigeria and globally to offer affordable and quality healthcare.
“Africa significantly trails global metrics in affordable and quality healthcare. MDaaS’ mission to build the physical and technological infrastructure required to provide affordable diagnostic services across Africa fits our investment theme: access to essential services. We are very excited to partner with Soga and his team on this journey,” said Mobolaji Adeoye, Managing Partner at Consonance Investment Managers.
It is estimated that 40% of the medical equipment in sub-Saharan Africa is currently obsolete or out of service. On a continent where public healthcare is chronically underfunded – receiving less than 5% of GDP, MDaaS presents the opportunity to bolster poorly-equipped hospitals and clinics in what is evaluated to be a $1.6 billion market in Nigeria alone.
“More than half of global population growth between now and 2050 is expected to occur in Africa, and yet the continent’s healthcare infrastructure is not designed to manage the lifestyle diseases this population will face,” said Zoe Schlag, Managing Director of Techstars Impact. “Under the leadership of Soga and his team, we’re excited to support MDaaS Global to lead the way delivering on solutions to one of the highest leverage opportunities we see in global health.”
Ami Dalal, Vice President and Managing Director of FINCA Ventures is positive that the firm’s accurate, affordable, and available diagnostics will help shift the Nigerian health system to more evidence-based medicine, driving improved health and economic outcomes for lower income populations outside of the largest cities.