Dutch-African startup CarePay International raises €40 million to expand its mobile health payment platform in Nigeria and Tanzania

carepay

Amsterdam and Nairobi-based CarePay International, a mobile health payments platform, has raised €40 million in a Series A financing round, making it one of the best funded startups operating in Africa.

Launched in 2016, CarePay International digitally connects health players including insurers, users, and providers on a single mobile platform, so that they can communicate and make transactions in real-time.

Already active in Kenya and Nigeria, the new capital will be used to expand the company’s mobile health payments platform in Nigeria and into Tanzania. CarePay International works with private and public health payers, connecting millions of people to its platform that are currently excluded from quality healthcare services in Africa.

“The mobile phone allows you to reach everyone at almost no extra cost, this creates unprecedented opportunities for health insurance schemes,” said Onno Schellekens, CEO of CarePay International.

This round saw participation from a mix of investors that reflect the company’s strategy to generate a social impact alongside financial returns. Joining the round are Dutch private equity funds IFHA-II and impact investor ELMA Investments, as well as the Dutch Ministry of Foreign Affairs that invested through the PharmAccess Group.

“Universal health coverage in Africa will only be possible if governments and their citizens can provide and access health services from both the public and private sectors through seamless and efficient mechanisms, CarePay brings that ambitious vision within the realm of possibility,” said Tom McPartland, a Board member of ELMA Investments.

“The current health insurance model excludes huge parts of the African population as the administrative costs are too high, there is not enough data and outpatient costs cannot be controlled,” said Max Coppoolse, IFHA-II’s Managing Partner. “CarePay’s mobile technology addresses all these elements and in addition offers cross-sale opportunities and other significant growth prospects for insurers.”