Lifestores Healthcare secures $3 million pre-series A to expand markets across Nigeria

Nigerian healthtech startup, Lifestores Healthcare has raised $3 million pre-series A making its total funding $4 million after its $1 million seed round in 2020. The recent funding led by Health54, the healthcare-focused corporate venture capital arm of CFAO Group, with Aruwa Capital Management as supporting lead and participation from other existing investors – is targeted towards expanding markets across the country.

The B2B healthtech which addresses inefficient access to procurement, personnel issues, outdated inventory software etc. was launched in 2017 by Bryan Mezue and Andrew Garza to provide essential affordable healthcare, delivery services and patient education programs to patients; and fast-track procurement process as well as reducing costs by 10-20%, among others through its product, OGApharmacy to hospitals and pharmacies.

Currently, the startup has more than 10% Nigerian pharmacies registered as customers and a 25% market growth while it plans to increase the number of patients reached by 4x i.e from 100,000 to 400000 – resulting in a 25% market share by 2023. To enable this, Lifestores will open a new Lagos processing centre as well as deploy new technology features as part of its B2B offerings, including pharmacy management software, AI-driven predictive ordering, advanced credit offerings and patient management initiatives. It will also expand its B2C services, with pilots in patient savings, care management, and medication delivery.

“Our scope goes beyond merely distributing medicines and stabilizing prices. Essentially, pharma wholesalers are the ‘banks’ of the healthcare supply chain in Nigeria, and their impact on the overall economy is considerable. By optimizing how we extend credit to our healthcare provider partners and modernizing patient access to health financing, we are able to power the growth of our partners and increase patient access to quality care,” Garza said.

Also speaking on the raise, Mezue said: “We are thrilled to have Health54 join our mission of democratizing access to quality and affordable primary healthcare in sub-Saharan Africa, together with existing investors, such as Aruwa Capital and the Lionbear consortium. The vast majority of Africans will visit their local pharmacy for treatment. We aim to support pharmacists, the unsung heroes of African healthcare, with the critical services they need to procure and provide safe and affordable medications to their patients.”

“We’re proud and happy to make our first investment with Health54 in Nigeria and in Lifestores,” Côme Vercken, Managing Director, Health54 expressed. “We were impressed with Bryan and Andrew’s on-the-ground experience of having run multiple retail pharmacies in Nigeria. In two years, they have built a first-rate distribution platform with OGAPharmacy. As a strategic partner, we’re delighted to work together and bring the benefits of our vertically integrated pharmaceutical supply chain so we can support more patients in Nigeria and beyond with quality primary healthcare,” he further noted.

Additionally, the two-time investing VC, Aruwa Capital Management’s CEO, Adesuwa Okunbo Rhodes said: “Following an initial investment 18 months ago, we have been impressed with Lifestores’ stellar growth rate and are proud to continue to support this hardworking team, providing market-relevant solutions. In line with Aruwa’s gender lens strategy, approximately 50% of the pharmacies on OGApharmacy, are owned or led by women. We look forward to Lifestores’ continued success and are excited about the new strategic partnership.”