i’SUPPLY, a healthtech enterprise operating in the B2B sector in Egypt, has successfully secured funding in a pre-Series A round to bolster its growth initiatives. The company’s objectives with this new capital injection include expanding its operations, enhancing its financial services for small and medium-sized pharmacies, and advancing its fintech solutions and technological infrastructure.
The specific sum raised in this round has not been publicly disclosed. However, the investment was spearheaded by Disruptech Ventures and saw participation from a consortium of investors including OneStop Capital, Axian Investment CVC, Egypt Ventures, among others.
This financial milestone arrives approximately two years subsequent to i’SUPPLY’s achievement of garnering $1.5 million in a pre-seed investment round, which was also led by Disruptech Ventures.
Ibrahim Emam, who holds the position of CEO and is a Co-Founder of i’SUPPLY, expressed that the fresh funds are set to catalyze the company’s strategic growth and significantly enhance its support for small and medium-sized pharmacies across Egypt.
In addition to the expansion, Emam revealed the company’s intentions to secure a formal license from the Egyptian Financial Regulatory Authority. This move is aimed at fulfilling the financing requirements of small and medium-sized pharmacies more effectively.
Emam emphasized the company’s steadfast dedication to addressing the growing market demand for financial support, particularly in tackling the working capital constraints faced by pharmacies and small-scale distributors. He affirmed that this focus remains central to i’SUPPLY’s mission.
Malek Sultan, a Co-Founder and Partner at DisrupTech Ventures, commented on the significance of providing financial assistance to pharmacies, recognizing it as an essential service that has been in high demand within the Egyptian market.
Established in 2022 by a trio of entrepreneurs— Ibrahim Emam, Sultan, and Moustafa Zaki— i’SUPPLY was conceived with the vision of transforming the pharmaceutical sector through digital innovation. The company’s mission is to streamline the pharmaceutical supply chain by offering an integrated platform that enables stakeholders to swiftly predict and navigate potential disruptions.
i’SUPPLY’s platform serves as a digital ecosystem that facilitates efficient interactions between various players in the pharmaceutical supply chain, including drug manufacturers, distributors, wholesalers, and pharmacies. By leveraging this platform, these entities can manage supply and demand transactions more effectively, ensuring a smoother flow of pharmaceutical products from production to the point of sale.
Since its launch, i’SUPPLY has achieved significant traction in the Egyptian pharmaceutical market, as evidenced by its impressive annual transaction volume, which has reached EGP 1 billion (equivalent to approximately $20.9 million). The company has efficiently processed over one million purchase orders, indicating a robust demand for its services and a strong operational capability.
The platform’s extensive network is a testament to its success, serving a vast array of over 10,000 pharmacies. Furthermore, i’SUPPLY has established collaborations with more than 200 distribution companies, showcasing the breadth of its reach within the industry. The company’s portfolio is equally impressive, offering access to over 10,000 pharmaceutical products, which underscores its commitment to providing comprehensive solutions to its clients.
On the regulatory front, the Egypt Health Care Authority made a significant announcement on June 7, 2024, regarding its initiative to modernize and digitally enhance services and revenue cycle management across healthcare facilities. This move aligns with the broader trend of digital transformation within the healthcare sector and presents opportunities for companies like i’SUPPLY to contribute to and benefit from these advancements.
The outlook for Egypt’s pharmaceutical industry is promising, with projections indicating that the sector is expected to generate revenue of $1.45 million in 2024. The industry is poised for growth with a projected compound annual growth rate (CAGR) of 7.68% from 2024 to 2028, which suggests that the market volume could reach $1,948 million by the end of this period. This growth trajectory presents a favorable environment for i’SUPPLY to expand its operations and solidify its position as a key player in the digital transformation of the pharmaceutical supply chain in Egypt.
The digital health market in Egypt is on a remarkable growth trajectory, with expectations to expand from a valuation of $0.59 billion in 2022 to an impressive $2.56 billion by the year 2030. This represents a substantial compound annual growth rate (CAGR) of 20.1% over the eight-year period from 2022 to 2030.
This significant growth is indicative of the increasing adoption of digital technologies in the healthcare sector, driven by the need for more efficient healthcare delivery, improved patient outcomes, and the optimization of healthcare costs. The trend towards digital health is likely fueled by advancements in technologies such as electronic health records (EHRs), telemedicine, health informatics, and various mobile health (mHealth) applications.
For companies like i’SUPPLY, which operates at the intersection of healthtech and fintech, the expanding digital health market in Egypt represents a substantial opportunity. The company’s focus on digitizing the pharmaceutical supply chain positions it well to capitalize on the growing demand for digital solutions in healthcare. As the market continues to evolve, i’SUPPLY and similar entities could play a pivotal role in shaping the future of healthcare services in Egypt, contributing to the overall improvement of the healthcare system and enhancing access to medical supplies and pharmaceuticals.
