DrugStoc, a Nigerian startup dealing with e-health pharmaceutical distribution, has reportedly closed a $4.4 million Series A funding round. With the investment, the firm aims to aggressively expand in the country to deliver pharmaceutical products to around 100 million people.
As it advances outside Lagos, the West African country's economic core, the firm intends to expand into 16 new states across Nigeria. The strategy aligns with its more ambitious goal of foraying outside Nigeria and into other African markets.
It is reported that within Nigeria, ready accessibility to pharmaceutical products can avert thousands of easily preventable fatalities, such as those caused by blood loss at the time of childbirth or children dying from diarrheal infections.
Africa HealthCare Master Fund (AAIC), led the Series A investment round. Meanwhile, Vested World, a Chicago-based investment business, German Development Bank (DEG), and high-net-worth investors with a genuine interest in tech-health were among the other participants.
Nobuhiko Ichimiya, Director of AAIC, stated that the firm is thrilled to support a startup that is strategically positioned to be a key player in the industry's expansion in Sub-Saharan Africa.
DrugStoc, while founded in 2015 by Opara and Yehia, boasts of a history that stretches back to 2010, when the two co-formed Integra Health, a hospital management firm centered on Yehia's master's degree project.
Now DrugStoc links 400 manufacturers with 3,200 doctors, hospitals, as well as pharmacies across Nigeria.
According to DrugStoc co-founder, Opara, the platform's monthly sales have increased by over 1,500% over the last three years; all owing to the rising demand for quality assurance provided by the DrugStoc platform.
Through the recent fundraise, DrugStoc plans to open more fulfillment facilities and add more transit stations and routes, giving it improved logistic choices for last-mile delivery. It is also forging new alliances with financial institutions to elevate access to long-term supply chain financing.
In addition, it further plans to make significant investments in cold chain facilities to improve the safe transportation of perishable items.