CribMD closes $2.6m seed round for product growth and team expansion
CribMD closes $2.6m seed round for product growth and team expansion
CribMD, a Nigerian healthtech startup founded in June 2020, has raised $2.6 million in a seed round led by Sputnik ATX, a US-based venture capital firm; Norrsken, a Swedish accelerator; and The Guardian Nigeria, a mass media company. This investment brings the startup's total capital raised to $2.85 million.
To get the business started, the founders — Ifeanyi Ossai (CEO), Ngiri Michael (CTO), and Lorna Mae Johnson (CFO) — bootstrapped a $250k pre-seed round. It raised an initial investment of $100k from Sputnik ATX — a US accelerator — in February 2021 for this round.
According to Ossai, they exceeded the $2 million target for this round due to investor interest.
“Our investors recognize the value of our work and the fact that it is extremely profitable. We were forced to decline several investment opportunities, even from current investors. Our $2 million was significantly oversubscribed,” he explains.
He believes this was possible due to the startup's strong team and a viable product that investors recognize as worthy of investment.
The startup hopes to use the funds raised to expand its current team of 36 professionals and expand its network of partners. Customers include The Guardian Nigeria — one of the round's investors — Bora Communications, IHS Towers, Energy Batteries Nigeria Limited, and NeoTech.
“We increased it specifically to fund team expansion, product development, and sales and marketing,” Ossai explains.
The business intends to concentrate its efforts on expanding its corporate subscriber base in Nigeria and other African countries, as well as on equally servicing B2B and B2C markets.
CribMD offers subscription plans for all income levels, with monthly fees ranging from $7 to $50.
Apart from consultation, diagnosis, prescriptions, and laboratory tests, the startup is currently experimenting with various service delivery features in order to provide simple-to-use services.
Prior to rebranding as CribMD, the business — which began as WeCare — set out to build 300 clinics strategically located throughout Sub-Saharan Africa in order to address the region's chronic healthcare shortage.
After three years, the founders realized that physical clinics were incapable of meeting the population's daily healthcare needs. WeCare continues to operate in Delta State, Nigeria. However, there will be no further additions to the four currently operating in the state.
In Summary
CribMD is now a digital healthcare solution that offers Africans subscription-based on-demand healthcare services. Clients can communicate with a doctor, request house calls, and schedule telemedicine sessions or hospital visits via an app or website with a monthly subscription. Additionally, they have health insurance.
Ossai claims that after ten months of operation, CribMD is already profitable and is on track to generate $24 million in annual recurring revenue within the next 12 months. Meanwhile, the platform serves 2,800 patients — with more than 50,000 on a waitlist — and generates $75,000 in monthly recurring revenue (MRR).
The COVID-19 outbreak increased the demand for telemedicine, and African tech startups may be attracting investment as a result. According to Techpoint Africa's Nigerian Startup Funding Report 2020, the healthtech sector raised $32.5 million across seven transactions, a 404 percent increase over the same period in 2019.
Courses and Certfication
Health Management Information System
Information Security and Cyber Law
