Rwandan healthtech company Kasha recently raised $21 million in a Series B funding round led by Knife Capital. Founded in 2016 by Joanna Bichsel, the company is focused on bridging healthcare access gaps through its digital retail and last-mile distribution platform.By delivering pharmaceuticals and fast-moving consumer goods (FMCGs) to consumers, resellers, pharmacies, and healthcare facilities, Kasha is steadily expanding its footprint across Africa. The funding comes at a critical moment for the company as it looks to scale operations and expand its reach across the continent.
Tackling Healthcare Access
Kasha offers a platform aimed at improving access to healthcare for underserved communities. With a robust network of agents embedded in local communities, the company enables people to discreetly order health products digitally, which are then delivered directly to their locations.“Our goal is to make quality health products more accessible, whether in urban or rural areas. The global health industry has long struggled with inefficiencies in serving last-mile customers. Kasha is working to change that by building a distribution network that truly meets people’s needs,” says Joanna Bichsel, founder and CEO of Kasha.The problem Kasha is addressing is a global one. From its beginnings in Rwanda, the company expanded to Kenya and is now preparing to launch operations in South Africa. West Africa is also in its sights, with plans to enter the region by the end of 2023 or early 2024.
Impressive Growth Amid Challenges
Over the past three years, Kasha has achieved remarkable growth. The company has reported a 10x increase in revenue year-over-year and saw its annual revenue multiply 50x between its Series A and Series B rounds.With the funds from its Series A, Kasha concentrated on expanding its distribution network in Rwanda and Kenya while driving sales through its platform. The Series B funding will allow the company to scale operations further and solidify its position as a leader in healthcare access across Africa.
Navigating a Tough Fundraising Landscape
Raising a Series B round in the current economic climate was not without its challenges. Global investors became more cautious during the economic downturn, with many focusing on domestic investments. Despite these obstacles, Kasha managed to secure a large bridge round that sustained operations and ultimately enabled the successful close of its Series B.According to Bichsel, this success underscores the strength of Kasha’s business model and the growing demand for healthcare solutions across the continent.
Plans for the Future
The $21 million raised will primarily go toward expanding Kasha’s operations into more African countries and developing its technology to better serve customers. Additionally, the company is investing in enterprise solutions, a high-margin segment with significant growth potential.“Our vision is to be the leading last-mile healthcare platform in Africa, and this funding is a key step in helping us achieve that goal,” says Bichsel.
A New Era for Healthtech in Africa
The healthtech sector in Africa is undergoing a transformation. For years, health-focused startups were viewed primarily as social enterprises. However, companies like Kasha are proving that healthtech can also be a highly scalable and profitable industry.As commercial investors take note, the sector is attracting increased interest and investment. Pharmaceutical manufacturers are also seeking better distribution channels, creating opportunities for innovative healthtech solutions.“This is a pivotal moment for healthtech in Africa,” Bichsel explains. “The industry is gaining traction, and we’re excited to be part of a movement that is not only growing but also building strong, sustainable businesses.”
The Role of Partnerships in Scaling
Kasha attributes much of its success to strategic partnerships. Collaborating with local health organizations has allowed the company to navigate diverse regulatory landscapes and cultural contexts across different countries.“Partnerships are essential for scaling across Africa. No company can do it all alone—it’s too costly and time-consuming. By working together, we can leverage each other’s strengths to create better solutions for everyone,” Bichsel states.
The Road Ahead
Over the next two to three years, Kasha plans to continue expanding its footprint across Africa while forming partnerships with global players to explore international markets.Bichsel remains optimistic about the future of healthtech on the continent. Despite the challenges of a tough funding environment, she believes African startups are uniquely positioned to succeed due to their focus on building strong, revenue-generating businesses.“In Africa, startups don’t have the luxury of operating at a loss for years. We are forced to build solid, sustainable businesses, and that’s what makes the opportunities here so exciting,” Bichsel concludes.
