Funding for African HealthTech Startups Dips 2% in 2023
Total funding for African HealthTech startups experienced a 2% decline in 2023, according to a report released by Salient Advisory. Despite this downturn, the broader African tech ecosystem witnessed a significant 39% drop in the amount raised during the same period. The report, titled 2023 RoundUp: Investments in African HealthTech, funded by the Bill & Melinda Gates Foundation, revealed that although the number of investments made in African HealthTech startups increased by 17% in 2023, the average ticket size dropped by 15%.
Salient Advisory stated that innovators managed to raise a total of $167 million through 145 deals, with an average ticket size of $1.1 million. Interestingly, five startups, namely Helium Health, Kasha, MYDAWA, Yodawy, and Remedial Health, captured 59% of all the funding in the sector last year. The report also highlighted that online pharmacy solutions garnered the attention of investors, capturing 38% of all funding in 2023, with Kasha, MYDAWA, and Yodawy securing significant Series B rounds.
In a positive development, women-led startups witnessed a notable increase in funding, raising a total of $52 million in 2023. This figure represents a staggering 2,000% growth compared to the $2 million raised in the previous year. Kasha, Dawi Clinics, Chefaa, and Maisha Meds were the focal points of these investments. Particularly noteworthy was Kasha’s achievement, securing a Series B funding of $21 million, which marks the largest investment ever made in a woman-led African HealthTech company.
African startups continue to rise to the challenge of expanding healthcare coverage and addressing the needs of patients throughout the continent. These innovative applications and services contribute to the development of a more efficient and inclusive health system.
In the broader startup space, Visa recently announced the launch of the second cohort for its Africa FinTech Accelerator program. This program aims to provide mentorship, training, and networking opportunities for startups in Africa and aligns with Visa’s commitment to investing $1 billion in Africa by 2027. The inaugural accelerator program, launched in June, achieved great success, prompting the continuation of this initiative.
With the funding landscape experiencing fluctuations in 2023, it is vital for African HealthTech startups to utilize resources, networks, and mentorship programs to continue innovating and driving improvements in healthcare across the continent.
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