MDaas Global, a healthtech startup based in Lagos has disclosed today, it has closed a seed funding round of USD 1million from lead investor Consonance Investment Managers involving also inputs from Techstars and FINCA Ventures.
The company hopes to employ its latest funding to scale and reproduce its innovative diagnostic center business model with the aim of opening 100 more centers in Nigeria and West Africa over the next five years.
The startup had earlier raised 100 K from Lagos-based Ventures Platform, an investment inspired by the medical firm’s success potential.
The capital reception was heralded by a US Securities and Exchange Commission filing made on April 1st, 2019, which said that more than 12 investors were involved in the round.
MDaas was launched in 2016 by Oluwasegun Oni, Opeyemi Ologun, Genevieve Barnard Oni, and Joseph McCord to intervene and draw up solutions to combat the scarcity of high-quality, affordable diagnostic facilities and make adequate provision for them to be available to low-income patients.
The startup was founded and incubated at the Massachusetts Institute of Technology (MIT), and their center is in the offering of radiology, cardiology and lab services.
The World Health Organization released a report stating that 80 percent of the medical equipment in developing countries is donated. The report also revealed that 40 percent of medical equipment in Sub-Saharan Africa is either nonfunctional or obsolete.
According to observations, the scarcity of medical equipment is prevalent in Africa where the medical sector is underfunded compared to the rest of the world – receiving below 5 percent of GDP.
MDaaS presents the opportunity to bolster poorly-equipped hospitals and clinics in what is evaluated to be a USD 1.6 Bn market in Nigeria alone.
For most Nigerians, modern health services are inadequate and largely unavailable. MDaaS banks on its vertically-integrated supply chain, a technology platform, and patient-centered design to provide modern, convenient services at a price point patients can afford.
The MedTech startup also offers a variety of high-impact diagnostic procedures from simple malaria tests to echocardiograms and pap smears. The affordability of its service is expected to disrupt the health sector progressively with basic procedures, like obstetric ultrasounds, starting at just USD 4.
Also, MDaas aims to promptly spot health issues and subsequently link persons affected with medical specialists as well as inexpensive treatments.
The startup kicked off operations in Ibadan on 2017 unveiling its foremost diagnostic center under the auspices of its patient – and physician-facing brand BeaconHealth. The company claims to have served more than 9,000 low-income and middle-income patients to date.
MDaas has partnered over 60 referring health facilities and also serves as the centralized diagnostic department for surrounding hospitals and clinics within Ibadan. MDaaS also partners globally with corporates, Health Maintenance Organizations (HMOs), and developmental organizations seeking top-tier diagnostics for their employees and beneficiaries.
MDaaS Global’s CEO and Co-Founder Oluwasoga Oni said, “This funding round fuels our next phase of growth, allowing us to continue providing modern, connected healthcare for Africa’s next billion.
With diagnostics as the bedrock of modern medicine and a key to the treatment of diseases like cancer, heart disease, and diabetes – which are on the rise within the continent – unbridled access to quality healthcare is crucial. We are immensely proud of our brick-and-mortar presence; merging physical patient care with state-of-the-art technology enables us to reach more patients with the care that they deserve.”
Mobolaji Adeoye, the Managing Partner at Consonance Investment Managers, stated, “Africa significantly trails global metrics in affordable and quality healthcare. MDaaS’ mission to build the physical and technological infrastructure required to provide affordable diagnostic services across Africa fits our investment theme: access to essential services. We are very excited to partner with Soga and his team on this journey.”
Zoe Schlag, Managing Director of TechStars Impact, stated, “More than half of global population growth between now and 2050 is expected to occur in Africa, and yet the continent’s healthcare infrastructure is not designed to manage the lifestyle diseases this population will face. Under the leadership of Soga and his team, we’re excited to support MDaaS Global to lead the way delivering on solutions to one of the highest leverage opportunities we see in global health.”
Ami Dalal, Vice President and Managing Director of FINCA Ventures, added, “Through more accurate, affordable, and available diagnostics, MDaaS will help shift the Nigerian health system to more evidence-based medicine, driving improved health and economic outcomes for lower income populations outside of the largest cities. We are proud to be a part of MDaaS’ efforts to connect patients throughout sub-Saharan Africa with critical health infrastructure.”
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