In a dynamic era where innovation meets healthcare, African HealthTech startups encountered a slight dip of 2% in funding during 2023. Despite this, these ventures managed to secure a substantial $167 million, marking a pivotal moment in the continent’s tech evolution. This figure, disclosed in a report by Salient Advisory, reflects a resilient spirit amidst broader challenges within the African tech ecosystem, which saw a notable 39% decrease in funding during the same period.
Investments in “African HealthTech”, funded by the esteemed Bill & Melinda Gates Foundation in 2023, a notable increase of 17% in the number of investments was observed, albeit with a 15% reduction in the average ticket size. This indicates a more diversified funding landscape, fostering opportunities for budding entrepreneurs.
The report underscores the dominance of five key startups—Helium Health, Kasha, MYDAWA, Yodawy, and Remedial Health—which collectively captured a substantial 59% of the sector’s funding. Particularly noteworthy was the emphasis on online pharmacy solutions, commanding 38% of total funding in 2023, propelled by significant Series B rounds to Kasha, MYDAWA, and Yodawy.
Equally inspiring is the surge in funding for women-led startups, which soared to $52 million in 2023, marking a staggering 2,000% increase from the previous year. Notable beneficiaries included Kasha, Dawi Clinics, Chefaa, and Maisha Meds, with Kasha securing a groundbreaking $21 million in Series B funding—an unprecedented milestone for a woman-led African HealthTech enterprise.
Beyond the financial realm, these startups are emblematic of a larger movement towards enhancing healthcare accessibility and inclusivity across the continent. Reports from PYMNTS in June 2022 shed light on the transformative impact of these ventures, fostering a more efficient and equitable healthcare system.
Amidst these developments, the broader startup ecosystem in Africa remains vibrant, with initiatives like Visa’s Africa FinTech Accelerator program taking centre stage. Launched in its second cohort, this program signifies a commitment to mentorship, training, and networking opportunities for emerging startups. With applications open until Feb. 29, this initiative builds upon the success of its inaugural launch in June, aligning with Visa’s ambitious $1 billion investment pledge in Africa by 2027.
In conclusion, while challenges persist, African HealthTech startups are forging ahead with determination and resilience, propelling innovation and transforming healthcare delivery across the continent.