CareCredit - Women's Health April 2024

Funding for African HealthTech Startups Dips 2% in 2023

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African HealthTech startups raised $167 million in 2023.

That total represented a 2% decline from the previous year, but it was raised during a period in which the amount raised by the broader African tech ecosystem dropped by 39%, Salient Advisory said in a report released Tuesday (Feb. 13).

During 2023, the number of investments made in African HealthTech startups increased by 17% but the average ticket size dropped by 15%, according to “2023 RoundUp: Investments in African HealthTech,” a report written by Salient Advisory and funded by Bill & Melinda Gates Foundation.

“Innovators raised $167M across 145 total deals, with an average ticket size of $1.1M,” Salient Advisory said in a Tuesday post on X.

Five startups captured 59% of all funding in the sector in 2023, the report said. Those startups were Helium Health, Kasha, MYDAWA, Yodawy and Remedial Health.

“Investors’ biggest bets were on online pharmacy solutions, which captured 38% of all funding in 2023, mainly driven by Series B rounds to Kasha, MYDAWA and Yodawy,” the report said.

Women-led startups raised $52 million in 2023, a total that was more than 2,000% higher than the $2 million they raised in 2023, per the report. This increase in funding was driven by investments in Kasha, Dawi Clinics, Chefaa and Maisha Meds.

“Kasha’s $21M Series B funding was the largest investment ever made in a woman-led African HealthTech company,” the report said.

Startups in Africa are rising to the challenge of expanding healthcare coverage and meeting the needs of patients with a range of innovative applications and services, PYMNTS reported in June 2022. Up and down the continent, startups are helping to bring about a more efficient and inclusive health system.

In the broader startup space, Visa said in January that it has launched the second cohort for its Africa FinTech Accelerator program that aims to provide mentorship, training and networking opportunities to startups in Africa. The program is accepting applications until Feb. 29.

The second round builds on the success of the inaugural accelerator program that was launched in June. It also aligns with Visa’s commitment to invest $1 billion in Africa by 2027.