Egypt’s Chefaa raises $5.25m to drive Saudi expansion
Chefaa, a pharmacy benefits platform focused on patients, has raised $5.25 million in a strategic funding round, with participation from both new and existing investors. The funding round was co-led by Newtown Partners (South Africa) and Global Brain (Japan), along with contributions from GMS Capital Partners LLC (US), Verod-Kepple Africa Ventures (Nigeria), and M3, Inc. (Japan).
This investment follows Chefaa's expansion into the Kingdom of Saudi Arabia (KSA), where the platform is now operational in 8 cities. The strategic funding will play a crucial role in supporting Chefaa's initiatives to scale various models aimed at digitizing the supply chain and empowering industry stakeholders.
These efforts are expected to enhance user experiences and promote adherence to treatment regimens. Chefaa's overarching goal is to spearhead a secure digital transformation of healthcare by adopting a patient-centric and comprehensive approach.
The market opportunity to serve community pharmacies across Africa is significant; the Middle East and Africa’s pharma market is said to be worth around $100 billion. Like Chefaa, there is an increasing number of health tech startups that are streamlining the pharmaceutical sector across the continent, serving businesses and individual customers in an industry that has for decades remained fragmented, leading to frequent stock unavailability, quality concerns, and unstable pricing. These include PharmacyMarts, Grinta, Vezeeta, mPharma, Lifestores, and Drugstoc. Chefaa's progress hints at the potential of its solutions and that of counterparts to significantly improve healthcare access in the Gulf Cooperation Council (GCC) and Sub-Saharan Africa (SSA) through the digitization of healthcare user interfaces.