Kenya’s online pharmacy MYDAWA has raised $20 million and acquired Uganda’s Guardian Health pharmacy chain in an international expansion drive.
The $20 million was secured from Alta Semper to increase the access to safe, affordable healthcare products and medical services, through a proprietary technology based solution. MYDAWA controls and provides all its operations including logistics in-house to ensure service levels.
According to The CEO of Alta Semper, Afsane Jetha, “This investment marks our entry into digital healthcare in Africa, which we see as a major growth area across Africa in the coming years. MYDAWA was the logical choice for us as their groundbreaking technology, underpinning a scalable business model along with regulatory knowhow and market entry experience mapped so well to our own strategy. The drive to increase access to good advice and safe and affordable medication is core to our overall mission of democratizing access to health and wellbeing across the African continent.”
Launched six years ago in Nairobi, Kenya, MYDAWA quickly became East Africa’s first licensed online pharmacy addressing critical customer needs by tackling significant public health issues such as product quality and affordable cost, amidst growing concerns over genuine and safe pharmaceuticals in the continent, high prices, scarcity medications and unreliable supply lines.
MYDAWA is now a fully regulated one stop shop for healthcare with access to consultations, tests, referrals, a continuous help desk, all accessed by whatever channel suits the customer. Purchasers of prescription medicine will always be advised by a professional and “Pharmtecs” bring personal service to the customer’s door by arriving on a motorbike. To complete the full service offering – walk in pharmacy/health centres are being opened in Kenya – the newest being the successful launch of a combined super pharmacy, health centre and fulfilment centre in Mombasa, Kenya. MYDAWA has now leapfrogged most the world in the completeness of the service to customers.
“Alta Semper’s ambition exactly matches that of MYDAWA, and it brings the drive, connections and clout to succeed. It invests in market leading consumer and healthcare platforms with regional aspirations seeking to ensure better health outcomes to as many Africans as possible. Three years ago, AAIC, a Japanese backed African healthcare fund joined as our first external investor and now the team has been augmented in the strongest manner possible. MYDAWA now has both a solid secure base and a great expansion opportunity based on a great offering which improves health outcomes. Guardian is a great first step on fulfilling our ambitions,” said MYDAWA Founder, Neil O’Leary.
Apart from the growing sales of its own brand products to wholesalers, clinics, pharmacies and supermarkets, sales of its services from telehealth to fulfilment are commencing with some of Kenya’s biggest clinic chains to expand their reach. MYDAWA is also partnering with other major health providers and businesses. and insurers and others to develop and fulfil best practice chronic care as illnesses such as diabetes become an increasing issue in Africa.
Its data is also crucial to partners who want to build tech enabled health services and products to support communities. Two years ago, MYDAWA received a grant from the Bill and Melinda Gates Foundation to provide advice and distribute HIV products which started late last year.
The acquisition of Guardian Health (for an undisclosed sum) is the first step in MYDAWA’s international expansion. Guardian’s mostly new 19 stores in key locations in Kampala and neighbouring regions combined with the dedicated care provided by a young highly competent staff has seen the business grow strongly and profitably over the past 5 years. It is the ideal launchpad on which to overlay the e-health capabilities of MYDAWA – at once making it both the biggest and most advanced e-health offering in Uganda. MYDAWA with Guardian are dedicated to continue its growth trajectory while constantly improving service for customers in Uganda.
The company is on the lookout for potential acquisitions, collaborations and promising start-ups situated across Africa. . It is also keen to engage with strategic partners and value add investors as it expands.
“With consumer spending in Africa projected to reach $2.1 trillion by 2025, this represents one of the continent’s largest business opportunities. Therefore, the investment into MYDAWA is part of our strategic aim at meeting this growing demand by investing in locally produced and value-priced consumer goods and services,” concluded Afsane Jetha.
Priscilla Muhiu’s appointment as CEO of MYDAWA Kenya is formally announced today. Muhiu joined the company in January from Glovo where she was GM Kenya operations.