Ezdehar, an Egyptian private equity firm, has secured a minority share in Yodawy, a healthtech startup based in Egypt. The investment, totaling $10 million, was made via the Ezdehar Mid-Cap Fund II.
The fund is backed by the European Bank for Reconstruction and Development, the European Investment Bank, the British International Investment, the Dutch Entrepreneurial Development Ban, the International Financing Corporation (IFC), Egyptian American Enterprise Fund, and the Belgian Investment Company for Developing Countries. As well as a group of Egyptian investors.
Ezdehar's investment in Yodawy will support the healthtech startup's growth plans, focusing on expanding its customer base and improving its technology-driven fulfilment capabilities.
Egypt holds the title of the largest pharmaceutical producer in North Africa and the Middle East, with a projected market value of $6 billion last year. Private entities like Yodawy have played a crucial role in addressing the gaps in pharmaceutical delivery left by public institutions.
"For the last five years, we focused on building a healthcare platform that solves fundamental challenges in the sector, and by now, have quietly solidified our position as the leading digital pharma powerhouse in Egypt and the partner of choice for payers and providers," Yodawy's co-founder and CEO Karim Khashaba said. "Ezdehar's funding and partnership at this time will be critical to drive change and support our mission to reduce healthcare costs, and facilitate patients access to services."
Yodawy serves about 35 health insurance and healthcare service companies, which have contracts with more than 800 companies, 20 hospitals, and 30 clinics in the market. The company also partners with 3,000 pharmacies that provide services for chronic and non-chronic conditions across Egypt. Since 2018, the healthtech startup has delivered more than six million prescriptions.
"Yodawy has identified and seized an untapped opportunity in the prescription and delivery sector, and has created a model that has proven effective in serving patients and healthcare providers in the market," Amir El-Sharqy, general manager of Ezdehar, said.