2023 RoundUp: Investments in African HealthTech

As African tech ecosystems have emerged over the past decade, billions of dollars have been invested in startups across the continent. However, while top-line information specifically on investment in African healthtech startups is typically available as part annual funding reports, in-depth, sector-specific analysis is not.

Our newest market intelligence report, “2023 RoundUp: Investments in African HealthTech”, aims to fill that gap by providing detailed analysis of grant, equity, and debt investment activity in African healthtech ecosystems in 2023. The report lays out key trends on the targets, destinations and sources of African healthtech investments in 2023. It also outlines opportunities for stakeholders to take action to sustain and accelerate investment in African healthtech ecosystems.

Among others, the report’s findings include:

• African healthtech innovations raised $167M in 2023, representing a 2% slowdown from the previous year. The sector fared better than the broader African tech ecosystem, which experienced a 39% funding decline. While the number of investments made in African healthtech actually increased by 17%, the average ticket size dropped by 15%, to $1.1M.

   

• 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. Five startups (Helium Health, Kasha, MYDAWA, Yodawy, and Remedial Health) captured 59% of all funding. 

   

• There was a >2,000% increase in funding for women-led startups, from $2M in 2022 to $52M in 2023, driven by deals for 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.

To learn more, read the report here. If you have questions about investments in African healthtech, or healthtech innovations across African markets, do not hesitate to get in touch.

Investors and donors actively funding African healthtech startups may also send us updates and information on their investment activity for inclusion in future reports.

Project team

This work was led by Zillah Waminaje, Yomi Kazeem and Abdullah Yusuf with support from Remi Adeseun and Mara Hansen Staples. Special thanks to the Bill & Melinda Gates Foundation, who support this work, as well as donors and investors who provided us with information on their investment activity.