Ilara Health, a Kenyan health-tech firm that provides private clinics with diagnostic devices and pharmaceutical products, has raised $4.2 million in a combined debt and equity pre-Series A funding round. The investment will be used to expand operations throughout East Africa, enhancing healthcare access for the general population through a B2B health and occupational service. This service will allow uninsured workers to access care at partner clinics for a monthly fee.
DOB Equity led the $2.5 million equity round, with contributions from Philips Foundation and existing investors such as AAIC Investment, Angaza Capital, Black Pearl Investments, and Perivoli Innovations. Debt funding was provided by Alphamundi, Kiva Capital, and Boehringer Ingelheim. The startup has now raised a total of $11.7 million in equity, debt, and grant funding.
Ilara Health began by leasing diagnostic devices to clinics in 2019, but has since evolved to enable healthcare centers to acquire pharmaceutical products and other items, such as hospital furniture, on credit. CEO Emilian Popa says this strategic move has empowered private healthcare providers to operate well-equipped clinics, thereby improving primary healthcare standards.
According to Popa, quality, not access, is the main issue in Kenyan healthcare, and Ilara’s aim has always been to raise care standards. This is why the company has become a provider or financier of all clinic needs. Popa founded Ilara with co-CEO Maximilian Mancini and COO Sameer Afzal Farooqi.
Ilara Health is targeting Kenya’s private healthcare sector, a popular choice for those with medical coverage or the funds to pay out of pocket. This preference is in response to the frequent underinvestment observed in government healthcare facilities. Despite the ongoing efforts of Kenya’s leadership to enhance the public healthcare system through a new financing program, it may take time before sufficient, well-equipped facilities can meet the increasing demand.
CEO Popa estimates that Ilara currently serves 3,000 out of 15,000 operational clinics in Kenya. These clinics are often found in residential areas, making them easily accessible and a preferable, albeit expensive, alternative to public facilities.
Ilara partners with several manufacturers, including the American company Butterfly Network, to provide low-cost, portable ultrasound devices and other resources to clinics. This makes scanning services more accessible to their target clientele.
For a monthly fee, Ilara also offers a subscription-based practice management software, enabling clinics to digitize their operations and streamline their business management. The software allows users to view their balance sheet, record patient data, and report to the Ministry of Health with a single click. Ilara uses the data provided by this software for credit rating purposes and to support their plans to offer up to $15,000 in working capital loans.
Moving forward, Ilara aims to further expand its impact on patients through the introduction of a B2B health and occupational service. This would involve partnering with employers to provide employees with access to various outpatient services at partner clinics.
Popa states that only 2.7% of Kenyans have private insurance coverage and that the state-run healthcare cover, NHIF, does not adequately cover outpatient care. Thus, by bridging this gap, Ilara hopes to provide a more holistic healthcare solution. Prior to founding Ilara, Popa worked in management consulting, the African tech and startup scene, and as an investor at DiGame, an Africa-focused subsidiary of the UK private equity firm Zouk Capital.
