Tanzanian healthtech startup Medikea has raised US$1.2 million in pre-seed funding to expand its healthcare operations, develop its technology and introduce additional specialist services. The funding comes as the company opens two new clinics and plans to grow its network to 10 facilities by the end of next year.

Founded in 2022, Medikea operates an integrated healthcare model combining round-the-clock virtual consultations with its own clinics, pharmacies and diagnostic laboratories. Unlike platforms that provide software for existing healthcare providers, the company owns and operates its facilities, employs salaried clinical staff and develops its technology in-house.

Its services cover primary care and specialist treatment, including paediatrics, women’s health, dermatology, fertility and chronic disease management. Patients can consult healthcare professionals online at any time, visit a clinic for physical examinations, obtain prescriptions from Medikea pharmacies and receive remote follow-up care. A single patient record connects these services throughout the treatment process.

The US$1.2 million pre-seed investment was secured through successive funding rounds. Initial backers included Baobab Network, Catalyst Fund and develoPPP Ventures, with Madica, Impacc, Hustle Fund, O’Shaughnessy Ventures, Madiro, the Boehringer Ingelheim Foundation and an angel investor joining later.

Explaining the company’s operating model, Dr Elvis Silayo, Medikea’s co-founder and chief executive officer, said the business had developed its own infrastructure to address inefficiencies in healthcare delivery.

“If you layer technology on top of a broken system, you are digitising inefficiency,” said Dr Elvis Silayo, co-founder and CEO of Medikea. “We rebuilt the parts we depend on, so that we can deliver a better experience at a lower price and still hold a fair margin.”

By controlling its clinics, laboratories and pharmacies, Medikea generates revenue across the full course of outpatient care rather than relying solely on consultation fees. The company says this integrated structure provides a pathway to profitability as it expands.

While its operations focus on outpatient services, patients requiring surgery or advanced procedures are referred to partner hospitals.

Medikea serves patients who pay directly for healthcare as well as those covered by insurance. Its insurance partners include the National Health Insurance Fund (NHIF), Jubilee Insurance, Assemble Insurance and GA Insurance.

The opening of clinics in Arusha and Morogoro has increased Medikea’s network to four facilities. The company intends to establish six additional clinics over the next 12 months, bringing its total to 10.

The new capital will support this expansion, alongside product development and the introduction of further specialist services. Medikea aims to serve more than 100,000 patients over the next year before pursuing regional expansion.

Maxime Bayen, a partner at Catalyst Fund, said the company’s integrated approach could help it serve communities exposed to increasing climate-related health risks.

“By combining clinics, diagnostics, pharmacy and virtual care, Elvis and the team are building a scalable model better equipped to serve communities facing growing climate-related health risks,” said Bayen.

Source: Disrupt Africa