Ilara Health Secures $4.2M to Expand Clinic-Support Services

Ilara Health, a health tech company based in Kenya, has successfully raised $4.2 million in debt-equity funding in a pre-Series A round. This investment will fuel the expansion of its operations across the East African country. Additionally, the funds will be used to enhance healthcare accessibility by introducing a business-to-business (B2B) health and occupational service. This service aims to provide uninsured workers with access to healthcare at partner clinics through a fixed monthly fee arrangement.

Funding Details

The $2.5 million equity round 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 investment came from Alphamundi, Kiva Capital, and Boehringer Ingelheim. With this latest round, Ilara Health’s total funding, including debt, equity, and grant financing, amounts to $11.7 million.

Evolution of Ilara Health

Initially focused on leasing diagnostic devices to clinics in 2019, Ilara Health has evolved its business model. It now facilitates private healthcare centers in acquiring pharmaceutical products and essential medical equipment on credit. Emilian Popa, co-founder and CEO of Ilara Health, emphasized that this strategic shift has enabled clinics to offer quality primary healthcare services by addressing equipment and resource limitations.

Targeting Private Healthcare Sector

Ilara Health targets Kenya’s private healthcare sector, which has emerged as a preferred option for individuals with medical coverage or those able to pay out of pocket. Unlike government-run facilities suffering from underinvestment, private clinics offer better-equipped facilities within residential areas. Ilara Health serves approximately 3,000 clinics across Kenya, out of an estimated 15,000 operational clinics in the country.

Partnerships and Offerings

The startup collaborates with various manufacturers, including Butterfly Network, to provide clinics with essential medical devices such as low-cost portable ultrasound tools. Additionally, Ilara Health offers a monthly subscription-based practice management software to digitize clinic operations and enhance business management capabilities.

Future Expansion Plans

In its next phase of growth, Ilara Health intends to broaden its reach by introducing the B2B health and occupational service. This initiative aims to partner with employers to offer outpatient services to employees at partner clinics. By addressing gaps in healthcare coverage, particularly in outpatient care, Ilara Health aims to complete the healthcare cycle and improve accessibility for Kenyans.

Founder’s Background

Emilian Popa, co-founder of Ilara Health, brings extensive experience in management consulting, technology, and Africa’s startup ecosystem. Prior to launching Ilara Health, Popa worked as an investor at DiGame, an Africa-focused fund under U.K. private equity firm Zouk Capital.

Ilara Health’s innovative approach to enhancing healthcare accessibility underscores its commitment to transforming healthcare delivery in Kenya and beyond. With continued expansion and strategic partnerships, the company aims to make significant strides in addressing healthcare challenges in East Africa.