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DrugStoc Secures $4.4M in Series A Funding to Expand Access to Quality Pharmaceuticals in Africa

Nov 15, 2021   •   by   •   Source: Proshare   •   eye-icon 1605 views

Monday, November 15, 2021 / 04:50PM / DrugStoc /Image Header Credit: DrugStoc 

 

Healthtech startup, DrugStoc has raised USD 4.4 million in Series Afunding to expand access to quality medicines while providing sustainablesupply chain financing for healthcare providers in Sub-Saharan Africa. Thefunding round is led by Africa HealthCare Master Fund (AAIC), and otherinvestors include Chicago-based venture firm Vested World and the GermanDevelopment Bank (DEG).

 

Nobuhiko Ichimiya,Director at AAIC stated that, "We are very excited to be part of the Drugstocjourney. The pharmaceutical market in Africa has enormous growth potential andwe are glad to back a company well-positioned to be a key player in thesector's growth in sub-Saharan Africa."

 

Chibuzor Opara, DrugStoc's co-founder and CEO; asserted that "We arecommitted to making an impact in the healthcare industry. This funding willenable us to expand and launch our tech-enabled products in more Africancountries where pharmaceuticals are critically needed.

 

Launched in2017, DrugStoc is a cloud-based platform that provides healthcare providerswith the interface for easy access to pharmaceuticals and healthcare products.It ensures that patients get quality medicines at affordable prices. It boastssuperior quality control systems with International Organization forStandardization (ISO) certification on Good Distribution Practice.

 

Havinggrown over the last three years with an almost 1500% increase in monthly salessince January 2018, 14 million people currently have access to genuinehealthcare products through hospitals and pharmacies covered by DrugStoc. Withthis funding round, the company will grow coverage to about 100 million people.It plans to achieve this by expanding its supply chain infrastructure bothdigitally and physically. Digital expansion will see DrugStoc build out itstech solutions to boost access and accommodate more partners as it extendscoverage beyond Lagos. DrugStoc will also build on its partnerships withfinancial institutions such as Sterling Bank, to increase access to sustainablesupply chain financing.

 

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Thecompany, founded by two seasoned professionals in the health sector, Chibuzo Opara and Adham Yehia, haspowered over ninemillion prescriptions and projects 12million by the end of 2021. Chibuzo Opara said: "Fragile and resource-challenged healthcare systemsrequire a radically transformative set of market-based strategies to expandaccess to healthcare. The DrugStoc way re-engineers the value chain digitally,improving and expanding access to healthcare at the same time."

 

It is predicted thatAfrica's pharmaceutical industry will be worth $56 billion to $70 billion by2030, from just $5.5 billion in 2007. However, the broken supply chain andchaotic distribution channels on the continent still pose a significantchallenge. It affects the delivery of quality medicines, affordability ofpharmaceuticals and efficient healthcare delivery for health workers.Innovation to solve supply chain challenges is a key opportunity in thisgrowing market.

 

Based onestimates from the United Nations Economic Commission for Africa (UNECA),Africa imports about 94% of its pharmaceutical and medicinal needs from outsidethe continent. Drugstoc is ensuring that more vital drugs, vaccines and healthtechnologies are supplied safely, effectively and affordably to more people.

 

Accordingto Liam O'Connor, who is also among a group of individual Silicon Valleyinvestors, "DrugStoc has demonstrated impressive growth and the ability to improvehealthcare providers' access to pharmaceuticals in Nigeria. I am excited tosupport DrugStoc's innovative work building a reliable, resilient, andhigh-quality pharmaceutical supply chain across Africa.  I am confident that DrugStoc will succeed inmaking a critical healthcare difference that will help save lives."

 

In 2016,DrugStoc was incubated under Stanford's Institute for Innovation in DevelopingEconomies; and in 2019 made the shortlist as one of ten finalists for theAfrica Netpreneur Prize Initiative, Jack Ma's flagship entrepreneur program inAfrica. It also won the award for the Technology Enabled Distributor of theyear, at the Nigeria Health Excellence Award in 2019 and 2021.

 

Thehealthtech startup will now double down on its vision to change the wayhealthcare providers interface with the pharmaceutical market and revolutionizesub-Saharan Africa's access to quality pharmaceuticals.  

 

CardinalStone PartnersLimited acted as Financial Advisers to DrugStoc.


 Proshare Nigeria Pvt. Ltd.

 

 Proshare Nigeria Pvt. Ltd.


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 Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.





Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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