DrugStoc, a Nigerian online pharmaceutical firm, has closed a $4.4 million Series A funding led by Africa HealthCare Master Fund (AAIC). Other investors include Chicago-based venture firm Vested World, the German Development Bank (DEG) and high-net-worth individuals.
Founded in 2015 by Chibuzo Opara and Adham Yehia, DrugStoc is a secure and interactive procurement platform (Online/Offline) that empowers healthcare providers by giving access to safe and quality pharmaceutical products through its consolidated supply chain system. DrugStoc currently links 400 manufacturers to 3,200 doctors, hospitals and pharmacies.
This is not the first funding DrugStoc is receiving. In 2019 the startup won $65,000 at the maiden edition of the $1million Africa Netpreneur Prize Initiative by the Jack Ma Foundation, received a grant from Bill and Melinda Gates, and also got seed funding from VestedWorld.
With the new investment, DrugStoc will expand its coverage to more regions by establishing more fulfillment centers and expanded transit points and routes, providing better logistic options for last-mile deliveries. It is also building partnerships with financial institutions to increase access to sustainable supply chain financing.
This is in addition to plans of more investments in cold chain infrastructure to enhance the safe distribution of perishable products.
Commenting on the expansion drive, CEO Opara said: “In Nigeria, we intend to expand beyond 14 million we currently serve to cover just around 100 million people. And this would be achieved by expanding to about 16 states. Once we are done with the heavy lifting from that expansion, we will be training our sights on other countries.”
“We are very excited to be part of the DrugStoc journey. The pharmaceutical market in Africa has enormous growth potential, and we are glad to back a company that is well-positioned to be a key player in the sector’s growth in sub-Saharan Africa,” said AAIC director, Nobuhiko Ichimiya.
