Egypt’s online pharmacy benefits marketplace Yodawy announced Monday that it has raised $7.5 million in a Series B funding led by Global Ventures, Middle East Venture Partners, and Algebra Ventures.
CVentures, P1 Ventures, and Athaal Angel Investors Group also participated in the funding round.
The investment comes as the health-tech market remains attractive in a country with a population of over 100 million, and very few players are providing digital medical services. Last year the Egyptian-founded cloud-based health-tech platform Vezeeta raised one of MENA’s largest funding rounds of $40 million.
Founded in 2018 by Karim Khashaba, Yasser AbdelGawad, and Sherief El-Feky, Yodawy connects users to pharmacies, doctors, and insurance companies, allowing them to browse and order medication and other pharmaceutical products.
The digital platform also enables insurance companies to automate approvals through the platform while giving room to pharmacies to boost online sales. Yodawy said in a statement that it would use the funding to expand into the other key emerging markets and roll out additional value-adding offerings to its network of pharmacies, patients, and health insurers.
Khashaba, Yodawy’s founder and CEO, said that the funding comes at a time of huge growth for Yodawy as it continues to add more pharmacies and insurers to its platform.
The health-tech platform currently integrates more than 3,000 pharmacies and eight health insurance companies. It has fulfilled over 800,000 orders, with over 2 million users on its platform.
“Yodawy was the first company in Egypt to partner up with leading health insurance providers, including AXA, MedNet, (Munich Re), NextCare (Allianz), and MetLife – global Fortune500 insurance companies,” stated the company in a statement. It explained that the step enabled patients to use their medical insurance cards online and get their prescriptions delivered at home.
The rapid growth and commitment to medical insurance present an attractive market opportunity as Egyptians are spending a combined $6 billion a year, according to Amal Enan, Managing Director at Global Ventures.
Enan claims that Yodawy is Egypt’s only player with B2C and B2B insurance and pharma products. Yodawy’s B2B SAAS offerings include a pharmacy benefit management solution and an AI-powered cloud-based medical claims approval engine.
The doctor-booking platform Vezeeta has launched its e-pharmacy solution “Vezeeta Pharmacy,” enabling its users to order their prescription medications through the mobile app, while Shifa also provides similar services.