Lagos-based medtech startup MDaas Global has announced the close of its seed funding round, a total of USD 1 Mn from lead investor Consonance Investment Managers with participation from Techstars and FINCA Ventures – an investment initiative of FINCA International – and other investors.
The company who also has a presence in Ibadan, will use the latest investment to scale and replicate its innovative diagnostic center business model, gearing to open 100 more centers in Nigeria and West Africa over the next five years.
The startup, 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, founded in 2016 by Oluwasegun Oni, Opeyemi Ologun, Genevieve Barnard Oni, and Joseph McCord, was incepted to look into the deficit 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.
According to the World Health Organization (WHO), 80 percent of the medical equipment in developing countries is donated. This 2011 study which observed inventory lists from 16 low-income countries reveals that 40 percent of medical equipment in Sub-Saharan Africa is either nonfunctional or obsolete.
This deficit exists in a continent whose medical sector remains 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.
Where available and up-to-date, health services are unaffordable for most of Nigeria’s population, and expensive out-of-pocket costs discourage patients.
MDaaS leverages 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 offers an extensive range of high-impact diagnostic procedures from simple malaria tests to echocardiograms and pap smears. And MDaaS’ affordability is helping change the healthcare narrative, with basic procedures, like obstetric ultrasounds, starting at just USD 4.
The service aims to quickly spot health issues and connects affected persons with an array of medical specialists as well as inexpensive treatments.
The startup entered Nigeria’s third most populous city, Ibadan, in 2017, launching 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.
Having partnered with over 60 referring health facilities, MDaaS 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, 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.”