Ghanaian Medical Startup mPharma Raises $9.7m in Series B Funding Round, Falls Short of $12m Target

Ghana's mPharma Misses $12 million Series B Funding Target

Ghana-based medical startup, mPharma has raised around $9.7 milion as part of its Series B financing round. According to Digest Africa, the sum falls short of the $12 million the company actually wanted to raise.

However, mPharma is yet to disclose the source of this funding, and is yet to publicly announce the news.

The information only came to light when Digest Africa began looking through the company’s US Security and Exchange Commission (SEC) filings from January 10. The filings indicated that 18 new investors joined the company.

In fact, SEC filings are now a typical way of finding new funding rounds in Africa, as African startups do not always declare or give out funding information.

Founded in 2013, mPharma is a data and cost management platform connecting Africans to affordable quality prescription drugs. The company was founded by Gregory Rockson (CEO), Daniel Shoukimas (CPO) and James Finucane (CTO).

In many parts of Africa, quality drugs are either not available or just too expensive. This makes it easier for fake drugs to become widespread, as they are usually cheaper.

“I knew how many times [my parents] had to come back to the pharmacy because they couldn’t get drugs,” said Gregory Rockson.

mPharma partners with drug manufacturers, insurance companies, financial institutions and governments to deliver prescription drugs directly to consumers in emerging markets. They provide doctors, patients and pharmacists access to a network of high-quality chronic diseases medicine at sustainable prices.

Since it launched, the startup has worked with over 200 pharmacies across Nigeria, Ghana, Zambia and Zimbabwe. According to Financial Times, the startup has supported over 100,000 customers since 2014.

“Our goal is to build the largest Africa drug retail support network outside South Africa in the next five years,” says Rockson.

The company makes its revenue via commissions paid on the drugs it purchases. And it also looks to make revenue by selling user data on medicine sales.

Before the recent undisclosed financing round, mPharma had raised at least $11.6 million, publicly. It raised $5 million in 2016 and $6.6 million in 2017. The new funding round means the startup has now raised $21.3 million so far.

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