There’s no denying the growth of healthtech globally over the past three years thanks to the pandemic. The event has accelerated the use of telemedicine, virtual care, and drug delivery, thus fuelling investor interest in the sector.
Investment has also trickled down to Africa, with large checks going into growth-stage startups. Lagos- and Texas-based digital healthcare provider Reliance Health is the latest beneficiary and is doing so in grand style, raising $40 million. The Series B round is the largest of its kind in African healthtech.
Reports say healthtech in Africa should reach a market value of over US$11 billion by 2025 and Reliance Health is looking to play a pivotal role in the continent reaching that capitalization.
The company was founded in 2016 by Femi Kuti, Opeyemi Olumekun and Matthew Mayaki. It uses an integrated process to provide health insurance and telemedicine via partnerships with hospitals and healthcare facilities.
“Our mission is super simple. I mean, the definition is simple, but the execution is sometimes more difficult than that,” said chief executive Kuti to TechCrunch on a call. “So essentially what we’re trying to do is to use technology to make quality health care accessible and affordable in emerging markets.”
Kuti’s comments highlight critical issues with healthcare in Nigeria: accessibility and affordability. In Nigeria and some emerging markets, it’s common for people to take healthcare for granted. No metrics are in place to guarantee the optimality of healthcare when used, so people tend to accept whatever healthcare is available.
In terms of pricing, hospitals haven’t found a way to charge patients not necessarily at the cheapest fee possible but using price points the general public can comfortably afford.
