Medikea raises $1.2 million pre-seed to grow its Tanzanian clinic network

Tanzanian e-health startup Medikea has raised US$1.2 million in pre-seed funding. This funding will support the company's expansion plans, including the opening of two new clinics in Arusha and Morogoro, bringing their total network to four facilities. Medikea aims to reach a network of 10 facilities by the end of next year.

Founded in 2022, Medikea operates a vertically integrated healthcare model that integrates 24/7 virtual consultations with its own network of clinics, pharmacies, and diagnostic labs. Unlike other companies that build software on top of existing providers, Medikea runs its own facilities, employs a salaried clinical team, and develops its technology in-house.

The round was raised through successive closes. Baobab Network, Catalyst Fund and develoPPP Ventures backed it first, and Madica, Impacc, Hustle Fund, O'Shaughnessy Ventures, Madiro, the Boehringer Ingelheim Foundation and an angel investor joined later. The money will go towards growth, product development and new specialist services. Medikea serves both out-of-pocket patients and insured members through partners including NHIF, Jubilee Insurance, Assemble Insurance and GA Insurance.

Dr Elvis Silayo, co-founder and CEO of Medikea, emphasised the importance of rebuilding the healthcare system to deliver a better experience at a lower price. By owning the clinic, lab, and pharmacy, Medikea aims to achieve profitability as it scales, focusing on outpatient care and referring patients to partner hospitals for surgery and advanced procedures.

With the new funding, Medikea plans to serve more than 100,000 patients in the next year before expanding regionally. Maxime Bayen, partner at Catalyst Fund, highlighted the potential of Medikea's model to serve communities facing growing climate-related health risks.