Singapore-based Japanese VC doubles down on East African pharma chain

Singapore-based Japanese venture capital firm AAIC Investment has made a follow-on investment in Kenyan healthcare company MyDawa, which operates both an e-commerce platform and a network of physical pharmacies, as it scales up operations in East Africa.

AAIC originally invested US$3m in MyDawa in 2019, becoming the company’s first external backer. The latest investment forms part of a US$9.6m funding round that will support MyDawa’s continued growth, including the rollout of 30 new pharmacies in Uganda and 10 in Kenya, as well as further development of its digital platform. Other investors in the round include Denmark’s Investment Fund for Developing Countries, private equity firms Alta Semper Capital and Creadev, and Japanese drugmaker Ohara Pharmaceutical. 

Founded in 2017 as an e-commerce business, MyDawa set out to simplify Kenya’s fragmented pharmaceutical supply chain, which is marked by multiple layers of intermediaries that drive up medicine prices. It also aimed to address the widespread sale of counterfeit drugs. To improve product safety, MyDawa introduced a track-and-trace system allowing users to verify authenticity via QR code or SMS. Each product comes sealed with a scratch-to-reveal authentication code.

Over time, MyDawa began integrating physical pharmacies into its digital model, transforming into a broader healthcare platform offering services such as in-person consultations and laboratory testing. In 2023, it acquired Guardian Health, a Ugandan pharmacy chain, and currently operates 21 physical branches across Kenya and Uganda.

The company’s planned expansion in Uganda aims to address a significant gap in access to medicine. Around two-thirds of the country’s pharmacies are in the capital, Kampala, despite only 10% of the population living there. As a result, most Ugandans have limited access to quality healthcare products. Around half of MyDawa’s new pharmacies in Uganda will be located outside of Kampala.

Kenya’s pharmaceutical sector was valued at approximately US$800m in 2023 and is projected to exceed US$1.1bn by 2026, while Uganda’s is estimated at between US$400m and US$500m. Across Africa, pharmaceutical spending per capita remains about six times lower than the global average, pointing to longer-term growth potential.

AAIC currently manages two investment funds that back healthcare-related startups in Africa. Founder and CEO Susumu Tsubaki says the increasing use of smartphones and internet access is making digital healthcare solutions more viable for tackling the rise in lifestyle diseases – including cardiovascular conditions, diabetes and some cancers – across the continent.

 

References

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'MyDawa secures US$3M investment funding to fuel expansion', MyDawa, 07 May 2019

'Trailblazers - A look at MYDAWA, Kenya’s 1st Online Certified Pharmacy', MyDawa, 13 November 2019

'Kenya’s MyDawa aims to be an all-in-one health platform backed by $20 million funding', TechCrunch, 03 July 2023

'Alta Semper Capital invests 20$ million in Kenyan primary care and digital healthcare platform MyDawa', Alta Semper Capital, 09 October 2023

'Linkedin Post', Santosh Tiwari, September 2024

'MyDawa will triple the number of pharmacies in Uganda and Kenya', Impact Fund Denmark, 30 April 2025

'Kenya's pharmaceutical market: Growing opportunities for suppliers', Pharma14, 26 May 2025

'Kenya's leaky supply chain fuels rise in counterfeit drugs', Business Daily, 16 June 2025

'Raises US $9.6 million to expand “bricks-and-clicks” pharmacy model in East Africa', AAIC Investment, 20 June 2025