MyDawa, a healthtech startup based in Nairobi, officially announced on Friday that it has secured a significant funding round led by international investors, including private equity firms Alta Semper and Creadev, as well as Denmark's Investment Fund for Developing Countries (IFU), Japan's AAIC Investment, and Ohara Pharmaceutical Co.
This investment marks a significant turning point in MyDawa's mission to transform healthcare delivery and accessibility in the region.
Even though East Africa's healthcare system is going through a digital revolution, millions of people still struggle to get essential medications. The company is positioning itself as a key player in closing this gap.
“This investment is more than just capital,” said Neil O’Leary, founder of MYDAWA. “The caliber of investors joining this round speaks for itself. It affirms that MYDAWA is not just solving real problems at scale—it’s building a blueprint for the future of healthcare in Africa.”
What the investment aims to achieve
The investment, the precise amount of which has not been disclosed, will support chronic disease management initiatives, improve MyDawa's AI-powered platform, and propel the company's growth throughout East Africa. As startups increasingly fill the gaps left by underfunded public health systems, the deal demonstrates growing confidence in Africa's digital health sector.
Additionally, the new capital will enhance the "Bricks & Clicks" Super Pharmacy model, increase digital integration to boost productivity, and upgrade platforms and improve services driven by AI.
Established by Neil O'Leary in 2017, MyDawa uses an integrated "bricks-and-clicks" business model that combines physical distribution networks with e-pharmacy services. Online doctor consultations, lab test ordering, e-prescriptions, and medication delivery are all available to patients. This is a vital service in areas with pharmacy shortages or irregular stock levels.
MyDawa’s expansion strategy
Part of MyDawa’s plan for securing the new capital is to enhance its regional expansion. A major component of this strategy is the acquisition of Rocket Health Uganda, a leading telehealth provider, which, in conjunction with MYDAWA's alliance with Guardian Pharmacies, enhances its fully integrated care ecosystem by providing lab testing, delivery services, virtual consultations, and chronic care management.
MyDawa now has new funding and plans to upgrade its technology and expand its regional reach to lower expenses and simplify inventory management.
“We believe the future of healthcare in Africa is digitally enabled, customer-first, and care-focused,” said Priscilla Muhiu, Chief Operating Officer at MYDAWA. “This investment enables us to deliver on that vision faster and more effectively.”
MyDawa’s 2024 significant milestone
AAIC, Creadev, Alta Semper, and other notable companies are well-known for their consumer investments in emerging markets and healthcare, demonstrating their confidence in MyDawa's sustainable growth.
The startup, which serves 1.8 million patients in Kenya and Uganda, reported a revenue growth of more than 30 percent in 2024 while keeping customer acquisition costs low. More than 5,000 patients in chronic care were assisted. Through its PreP and PEP programs, in collaboration with the Bill & Melinda Gates Foundation, more than 3,200 HIV prevention patients were reached.
Zach Fond, Partner at Alta Semper, added: “We’ve seen firsthand the transformative power of MYDAWA’s model. We’re proud to support its leadership as a blueprint for digital health innovation across the continent.”
Additionally, collaborations with pharmaceutical behemoths like Novo Nordisk and Gates Foundation-funded projects, including HIV prevention programs, have broadened the company's influence. Chronic-care programs, like Mzima in Kenya and Bulunji in Uganda, serve patients with chronic conditions like diabetes and hypertension.
MyDawa’s regulatory hurdles
MyDawa still has challenges in spite of its expansion. East African markets have different regulatory requirements, and competition is getting fiercer as competitors like South Africa's Dis-Chem and Nigeria's HealthPlus fight for supremacy in the continent's e-pharmacy market.
However, MyDawa has an advantage thanks to its hybrid business model, which combines physical logistics with digital convenience. The funding will expedite the company's vision of a "digitally empowered, accessible healthcare ecosystem for every East African", according to COO Priscilla Muhiu.
If MyDawa can overcome the obstacles in its path, its success could serve as a model for how digital innovation can democratise healthcare in underserved areas as Africa's healthtech industry develops.
MyDawa’s future outlook
MyDawa is looking forward to continuous acquisitions and geographic expansion; an increase in domestically produced drugs; improvements in services for managing chronic diseases; and maintaining its position as the most reliable non-inpatient digital health partner in Africa.
MYDAWA keeps growing its partnerships with hospitals, insurers, clinics, supermarkets, and international leaders like Novo Nordisk in order to jointly develop scalable health solutions.
MYDAWA was established in 2017 with the goal of providing millions of East Africans with affordable, digitally enabled healthcare that is comprehensive and accessible. Together, MYDAWA and its partners are influencing the direction of healthcare in Africa.
