Africa: East African e-Pharmacy Startup MYDAWA Raises $20 Million in Largest Funding Round Yet

MYDAWA, an e-pharmacy platform operating in Kenya and the broader East African region, has successfully raised $20 million in its latest funding round, marking its largest fundraising event to date. The investment comes from Alta Semper Capital and positions MYDAWA for expansion beyond its current market.

Founded in 2016, MYDAWA provides online and physical store-based health services. In addition to securing funding, the company has recently acquired Guardian Health, a pharmacy chain operating in Uganda. While the acquisition amount remains undisclosed, MYDAWA states that this move is part of its strategic plan to enter new markets.

With the new Ugandan arm, MYDAWA now operates 19 additional stores in Kampala and neighboring regions. The company is actively seeking potential acquisitions, collaborations, and partnerships with promising startups across Africa, aiming to broaden its reach and impact.

MYDAWA’s statement highlights its partnerships with major health providers and businesses, as well as the rapid growth of its own brand product sales to wholesalers, clinics, pharmacies, and supermarkets. The company is also beginning to offer services such as telehealth and fulfillment in collaboration with leading clinic chains in Kenya, further expanding its influence. Additionally, MYDAWA is partnering with insurers and others to develop and implement best practices for chronic care, addressing the rising prevalence of conditions like diabetes in Africa. Through its operations, MYDAWA generates valuable data that benefits its partners.

Alta Semper’s CEO, Afsane Jetha, views this investment as a strategic move into digital healthcare in Africa, recognizing the sector’s immense growth potential across the continent. Jetha emphasizes MYDAWA’s groundbreaking technology, scalable business model, regulatory expertise, and market entry experience as key factors that align with Alta Semper’s strategy. Both organizations share a common mission of democratizing access to health and well-being in Africa, particularly by increasing access to reliable advice and affordable medication.

Prior to this funding round, MYDAWA had already raised over $9 million in previous rounds. Its seed round in March 2017 secured $1.5 million from Indigo Partners, followed by a Series A round in 2019 that raised $3 million from Africa HealthCare Master Fund and Indigo Partners. In late 2021, MYDAWA raised an additional $1.2 million from the Bill & Melinda Gates Foundation.

Alongside the funding announcement, MYDAWA revealed the appointment of Priscillah Muhiu as its business lead in Kenya. Muhiu, formerly the general manager for the Kenyan market at Glovo, brings valuable expertise to her new role. MYDAWA expresses confidence in Muhiu’s leadership, citing significant expansion in both consumer and business-to-business activities under her guidance.