NIGERIA – RxAll, a startup based in the United States and Nigeria that uses deep technology to offer patients with high-quality medication, has raised US$3.15 million in funding to expand into other countries and develop its technology.
This funding round combines a recently closed US$2 million seed round (which was oversubscribed by US$2.25 million) and a US$900,000 pre-seed round raised at the end of last year. The financing was led by Launch Africa, with participation from SOSV’s HAX and Keisuke Honda’s KSK fund.
With the latest funding, the company hopes to expand to an additional 14 locations before the end of the year, with a pan-African strategy in the works for next year.
“Launch Africa Ventures is excited to be co-leading this round of financing into a strong, experienced team at RxAll. We believe that RxAll is bridging a major gap in access to quality healthcare in Africa by pioneering a drug delivery platform to enable pharmacies and patients to buy authenticated medicines online,” managing partner at Launch Africa Ventures Zachariah George said.
“The ability to achieve favourable unit economics and multiple revenue streams by leveraging anti-counterfeiting mobile spectrometer technology, owning the entire drug delivery supply chain and their own payment wallet, provides a massive growth and scaling opportunity across Africa and beyond.”
“We’ve been incredibly impressed by RxAll’s ability to scale and meet customer demand.”Duncan Turner – General partner, SOSV and managing director, HAX
Founded in 2016 by Adebayo Alonge, Amy Kao and Wei Lui, RxAll’s proprietary technology, RxScanner, is a portable authenticator allowing patients to verify their medications. The RxScanner, according to the company, can determine the quality of prescription pharmaceuticals in 20 seconds and present the results in real time via mobile apps.
“We’ve been incredibly impressed by RxAll’s ability to scale and meet customer demand. In just the last year, the team has brought together world-class hard tech and operational excellence to solve pressing issues for over a million Nigerians, and we couldn’t be more excited by their vision for the broader pharmaceutical market,” Duncan Turner, general partner at SOSV and managing director of HAX said.
RxAll selects high-quality sellers for its marketplace and delivers the RxScanner to them. The machine learning model reads the sample spectra and sends test results that show the identity and quality of the sample in comparison to the reference.
Sellers can be located using the filter, and once batch testing is completed, the seller can release the product into the marketplace and make it available for on-demand ordering, pick-up, and deliveries.
Commissions from deals on the marketplace are how the company makes money. With the RxScanner, it also uses a subscription model for both individual and business users.
In Nigeria, the firm is presently serving ten cities and is actively validating the validity of pharmaceuticals for 1 million patients while also supporting over 2,000 hospitals and pharmacies.
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