MyDawa, a Kenyan e-health startup, has secured $20 million in funding from private equity investor Alta Semper Capital.
The investment will fuel MyDawa’s expansion plans, allowing the company to extend its regional reach and enhance its product offerings, with the ultimate goal of becoming a comprehensive health platform for users.
Since its launch in 2016, MyDawa has evolved from an e-pharmacy to a multifaceted healthcare provider. In addition to its online platform, the company now offers both virtual and in-person consultations, as well as laboratory services through its growing network of walk-in pharmacies and health centers.
Recognizing the importance of diversification, MyDawa has also introduced its own line of branded products and intends to open up its technology infrastructure for telehealth and fulfillment, enabling other businesses in the healthcare sector to scale. Already, the company has secured partnerships with some of Kenya’s prominent clinic chains, which are eager to expand their reach through collaboration with MyDawa.
In a strategic move to extend its presence beyond Kenya, MyDawa has recently acquired Guardian Health, a healthcare company based in Uganda. This acquisition is part of MyDawa’s broader plan to pursue additional collaborations and acquisitions as it expands its operations in the region. The growth strategy will be spearheaded by the newly appointed CEO, Priscilla Muhiu, formerly associated with Glovo Kenya.
Neil O’Leary, co-founder of MyDawa, expressed his enthusiasm regarding the funding and the latest acquisition. He emphasized the alignment of Alta Semper’s ambition with that of MyDawa, praising their drive, connections, and influence in the industry. O’Leary also highlighted the progress made since the involvement of AAIC, an African healthcare fund backed by Japanese investors, as MyDawa’s first external investor three years ago.
With a solid foundation and a compelling offering that improves health outcomes, O’Leary believes that the acquisition of Guardian Health is an excellent initial step towards fulfilling MyDawa’s ambitions.
In 2019, MyDawa secured $3 million in funding from AAIC’s Africa Healthcare Fund, and it has also received a grant of $1.2 million from the Bill & Melinda Gates Foundation. The grant aims to combat the spread of HIV/AIDS by increasing access to Pre-Exposure Prophylaxis (PrEP) medication.
Afsane Jetha, CEO of Alta Semper, noted that the investment represents the private equity firm’s initial foray into digital healthcare in Africa. The sector is widely regarded as having tremendous growth potential in the coming years.
Jetha stated that MyDawa was the natural choice for Alta Semper due to its groundbreaking technology, scalable business model, regulatory expertise, and market entry experience, all of which align closely with the firm’s strategic objectives. She highlighted the shared vision of increasing access to reliable healthcare advice and safe, affordable medication as core elements of their mission to democratize healthcare and well-being across the African continent.
In anticipation of Africa’s consumer spending expected to reach $2.1 trillion by 2025, Alta Semper’s investment in MyDawa perfectly aligns with their strategic objective of addressing the surging demand for locally sourced and affordable consumer goods and services.
This substantial funding will be instrumental in establishing MyDawa as a dominant force in the digital healthcare industry, enabling the company to effectively cater to the diverse requirements of African consumers.
