Startups

Uganda’s Rocket Health raises $5M to scale telemedicine across Africa

Comment

Image Credits: Rocket Health

The world over, the popularity of telemedicine spiked during the COVID pandemic, growing 78 times in April 2020, a few months after the disease struck, according to a McKinsey study.

In some parts of Africa, it was a great opportunity for telemedicine to make new inroads. But in Uganda, the industry had already taken off, albeit slowly, through Rocket Health, a startup working to transform the delivery of medical care using technology.

Launched in 2012, Rocket Health offers online medical consultation, collection of samples, and delivery of medicines. They also have a USSD service for those without internet connection. After nearly a decade of operation in Uganda, the startup is now set to scale its integrated digital health solution to more regions across the country and within East Africa over the next two years, following a $5 million Series A funding. In the long term, it will pursue growth opportunities in West Africa.

Rocket Health’s co-founder and CEO, Davis Musinguzi, told TechCrunch that the greater plan remains making healthcare easily accessible across Africa, a region with the highest disease burden in the world and the lowest patient-to-doctor ratio.

Currently, countries across sub-Saharan Africa have 0.23 doctors for every 10,000 people, against the best ratio of 84.2 doctors in the most developed countries, according to the World Health Organization.

“I think tech is what helps us cover that gap, create more efficiencies, and broaden our reach beyond. There’s no way we’re going to build enough hospitals to be able to reach everybody with the health care that they need. I think telemedicine really helps breach the gap of availability,” said Musinguzi.

“A lot of healthcare facilities and professionals are still centralized within the urban areas or the capital cities. So very many people across the country don’t get the benefits of these highly skilled individuals. And I think technology complemented with existing infrastructure is how we can bridge that gap.”

Rocket Health call center. Image Credits: Rocket Health

The startup’s latest funding round was led by Creadev, an evergreen investment firm backed by Mulliez family, with participation of early-stage African investors Grenfell Holdings and LoftyInc Capital Management. The round brings the total funding raised by Rocket Health to $6.2 million.

“We are delighted to partner with Rocket Health on its mission to make Healthcare accessible to many people in Sub-Saharan Africa,” Creadev Africa said in a statement. “We have been highly impressed by the creativity, tenacity and vibrant culture of the Rocket Health team, who hold an ambitious vision for the future of African primary care. The opportunities are countless, from data analytics to innovative distribution channels.”

Other telehealth startups in the space across Africa include Ghanaian health tech startup mPharma, which revealed plans to set up 100 virtual centers in its markets by the first quarter of the year, and Quro Medical, a South African startup that offers home care complemented by telemedicine service.

Rocket Health runs its own lab and pharmacy delivery services, which Musinguzi said helps them remain in control of the delivery of products and services. They charge a $3 consultation fee and $1.5 for drug delivery.

The company has grown from a few thousand virtual consultations a year to about 400,000, propelled by the demand for remote healthcare during the pandemic.

“COVID has been a great boost to introducing people to telemedicine. Once somebody has had that magical experience with last-mile telemedicine, they almost never go back to queuing up in hospitals waiting to see the doctor. We now do tests like PCR testing in addition to home-based care,” said Musinguzi.

Musinguzi co-founded Rocket Health with John Mark Bwanika (COO), Fiona Nuwamanya (CFO), Hope Achiro (chief pharmacist) and William Lubega (chief medical officer).

Rocket Health offers end-to-end medical services including delivery of medicine. Image Credits: Rocket Health

Its clientele base ranges from those calling in to have their children vaccinated to patients managing chronic illnesses. Also, 12 insurance companies have signed up, giving it access to a pool of customers within Uganda and across East Africa, since most of them have a regional presence.

“We have different categories of clients; a lot of our clients are in urban areas, and they love the convenience of our services. We have also seen companies start buying subscriptions for casual workers, who don’t qualify for corporate medical covers,” said Musinguzi.

As Rocket Health expands and embarks on its next phase of growth, they have partnered with Ada, a Berlin-based end-user self-assessment platform, to integrate artificial intelligence into its teleconsultations.

More TechCrunch

Welcome to Week in Review: TechCrunch’s newsletter recapping the week’s biggest news. This week Apple unveiled new iPad models at its Let Loose event, including a new 13-inch display for…

Why Apple’s ‘Crush’ ad is so misguided

The U.K. Safety Institute, the U.K.’s recently established AI safety body, has released a toolset designed to “strengthen AI safety” by making it easier for industry, research organizations and academia…

U.K. agency releases tools to test AI model safety

AI startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others