Ilara Health, a Kenya-based health-tech company, has successfully raised $4.2 million in a pre-Series A round, comprising both debt and equity. The $2.5 million equity portion was led by DOB Equity, with participation from the Philips Foundation and existing investors such as AAIC Investment, Angaza Capital, Black Pearl Investments, and Perivoli Innovations. Debt investments were made by Alphamundi, Kiva Capital, and Boehringer Ingelheim. This brings Ilara Health’s total funding, including debt, equity, and grants, to $11.7 million. The funds will be utilized to expand operations in Kenya and enhance healthcare accessibility through the introduction of a B2B health and occupational service.
Ilara Health initially began by leasing diagnostic devices to clinics in 2019. Over time, it evolved to offer credit for acquiring pharmaceutical products, hospital furniture, and other essential items. This strategic shift has empowered private healthcare providers to operate well-equipped clinics capable of delivering quality primary healthcare services. The company aims to address the quality of care, rather than access, which is a prominent issue in Kenya’s healthcare landscape.
The startup, co-founded by Emilian Popa, Maximilian Mancini, and Sameer Afzal Farooqi, currently serves 3,000 clinics out of an estimated 15,000 operational clinics in Kenya. Ilara Health partners with various manufacturers, including the American company Butterfly Network, to provide affordable diagnostic tools like portable ultrasound devices to clinics. Additionally, the company offers a monthly subscription-based practice management software to digitize clinic operations and improve business management.
In the next phase of growth, Ilara Health plans to focus on reaching patients through a B2B health and occupational service. This initiative involves partnering with employers to provide employees with access to various outpatient services at partner clinics. The company aims to address the limited private insurance coverage in Kenya, where only 2.7% of the population is privately insured, and the state-run health cover (NHIF) does not adequately cover outpatient care. Ilara Health’s innovative approach seeks to enhance healthcare accessibility and improve the overall healthcare experience in Kenya.
