The HealthTech sector in Africa is experiencing a dynamic transformation, driven by a surge in investments aimed at leveraging technology to improve healthcare delivery and accessibility across the continent. This article delves into the evolving investment landscape of HealthTech in Africa, highlighting the key trends, major players, and significant opportunities that are propelling the industry forward. From innovative startups developing cutting-edge medical technologies to established companies expanding their reach, the HealthTech investment scene in Africa is ripe with potential.

Overview of Startup Funding

From 2019 to 2024, HealthTech startups in Africa raised an impressive $744.37 million across 285 deals. South Africa led the way with $181.4 million, followed closely by Nigeria with $158.8 million, and Ghana with $117.67 million. This substantial investment demonstrates growing investor confidence and the sector's potential to transform healthcare delivery on the continent.

Most Funded Startups

mPharma

mPharma, founded in 2013, is dedicated to improving access to medications in emerging markets. By partnering with various stakeholders, including health insurance and pharmaceutical companies, the company aims to make high-quality medications more affordable and accessible to patients. Its innovative approach has attracted over $89 million in funding, including a recent $30 million Series D round from JAM Fund and a $5 million debt financing from Citibank.

Cape Bio Pharms

Cape Bio Pharms specializes in developing a plant-based platform for producing proteins used in rapid diagnostic test kits and biomedical research. Their innovative approach focuses on commercializing biotechnology for the production of recombinant proteins in tobacco plants, offering life scientists a diverse range of premium, moderate, and custom plant-made recombinant proteins with reproducible results. With a total funding of $60.04 million, Cape Bio Pharms is poised to revolutionize protein production in the biotech industry, offering scalable solutions for various applications in healthcare and research.

Vezeeta

Vezeeta is a Cairo-based startup founded by Amir Barsoum in 2012, offering a digital healthcare platform for booking doctor appointments online. It aims to improve healthcare access for patients in Egypt and the MENA region. The company has successfully raised over $47 million in funding, including a $12 million Series C investment led by STV.

Most Active Investors

Google for Startups - Black Founders Fund

The Black Founders Fund, initiated by Google for Startups, offers financial awards and practical support to Black-led startups, aiding their development and growth. This initiative supports Black-led businesses across Africa, Brazil, Europe, and the United States by facilitating access to funding, bolstering community ties, and fostering generational change. Between 2019 and 2024, the fund was involved in 28 deals, establishing itself as one of the most active investors in Africa's healthtech sector.

Launch Africa

Launch Africa, founded by Janade Du Plessis and Zachariah George in 2020, is a fund focused on alleviating capital constraints for Seed Stage tech startups. With the primary objective of supporting early-stage technology ventures, Launch Africa has become a significant player in the investment landscape. The fund has completed 20 deals between 2019 and 2024, positioning itself as one of the most active investors in Africa's healthtech sector.

Founders Factory Africa

Founded by Roo Rogers, Founders Factory Africa is a venture studio and startup accelerator that transforms early-stage companies into sustainable businesses. With $114 million raised, it invests up to $250,000 in idea, pre-seed, and Seed stage startups, offering additional non-dilutive funding for women-led teams. From 2019 to 2024, it has made 20 investments in African healthtech startups.

Top Funding Rounds in Q1 2024

Hewatele

Hewatele, a social enterprise committed to supplying affordable, high-quality medical oxygen to underserved patients, collaborates with CPHD and Mediquip Global to tackle oxygen shortages in East Africa. Their mission ensures that healthcare workers never face the dilemma of choosing whom to save due to oxygen scarcity. On February 14, 2024, the company secured $20 million in funding, fortifying its endeavors to enhance oxygen accessibility and diminish patient costs.

Yodawy

Yodawy, founded by Karim Khashaba, Sherief El-Feky, and Yasser AbdelGawad in 2018, is an innovative online pharmacy and insurtech platform in Egypt. It streamlines medication access through a mobile app, connecting customers to a vast network of pharmacies and automatically applying insurance benefits. In a Private Equity round on January 15, 2024, the startup raised $10 million from Ezdehar, further empowering its mission to make healthcare more accessible and affordable for all.

Ilara Health

Ilara Health, founded by Amaan Banwait, Emilian Popa, Hannes Eckmayr, Maximilan Mancini, and Sameer Farooqi, is a health technology company revolutionizing healthcare access in rural Africa. By connecting private clinics with AI-powered diagnostic devices and pharmaceuticals, Ilara Health provides accurate and affordable diagnostics directly to primary care doctors. On February 12, 2024, the startup secured a total of $4.2 million in funding led by DOB Equity, comprising $2.5 million in equity and $1.7 million in debt financing, further fueling its mission to improve healthcare outcomes across the continent.

Notable Exits

DabaDoc

DabaDoc, founded by Driss Drissi-Kaitouni and Zineb Drissi-Kaitouni, is a technology company that simplifies healthcare access across Africa. It connects millions of patients with thousands of doctors, offering features like instant bookings and online consultations. DabaDoc was acquired by Orange and AXA in 2021, marking a significant milestone in its journey to revolutionize healthcare delivery in the region.

3elagi

3elagi, founded by Haytham Ibrahim and Yassin Gamal in 2018, is a technology-driven online pharmacy specializing in beauty and health products. Their medical application facilitates access to healthcare services by connecting consumers with nearby pharmacies, labs, and healthcare providers. The startup was acquired by Ibnsina Pharma for $1.6 million in cash in 2020.

The HealthTech investment landscape in Africa is rapidly evolving, marked by significant capital inflows and innovative solutions addressing the continent's unique healthcare challenges. Despite hurdles, the sector promises substantial returns and social impact. As technology advances and success stories multiply, momentum will continue to grow. The future of African healthcare is promising, with ongoing investments driving sustainable development and improved health outcomes across the continent.