Egypt: Ezdehar Mid-Cap Fund II invests $10m in Yodawy
Ezdehar Management, an Egypt-based private equity firm, has announced the purchase of a minority stake in Yodawy.
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Ezdehar Management, an Egypt-based private equity firm, has announced the purchase of a minority stake in Yodawy through its Ezdehar Mid-Cap Fund II.
Founded in 2018, Yodawy is a pharmacy benefits management platform and the region's largest dispensary of chronic medication refills. Powered by technology and advanced fulfilment capabilities, Yodawy manages the end-to-end prescription life cycle: providing the tech for doctors to generate e-prescriptions, insurance companies to automate approvals in real-time, and patients to get their medications delivered on time, at home.
Yodawy is now integrated with several health insurance providers and serves 35 payers, 800+ corporates, 20 hospitals, and 30+ clinics in the market. The company also relies on a network of 3,000 pharmacies in the market serving both chronic and acute patients nationwide and has processed more than six million prescriptions since inception. Yodawy is backed by Delivery Hero Ventures, Global Ventures, Algebra Ventures, and AAIC who also participated in Yodawy’s round with a follow-on investment on top of Ezdehar’s injection.
Ezdehar’s primary capital investment in Yodawy will be focused on supporting the company’s growth plans, mainly expanding its client base and tech-enabled prescription fulfilment capabilities and assisting its unique management team in creating further value in the market to ultimately solidify its position in the healthtech space as the sole pharmacy benefit management player in Egypt and the region.
Karim Khashaba, the chief executive officer of Yodawy said, “For the last five years, we focused on building a healthcare platform that solves fundamental challenges in the sector, and by now, have quietly solidified our position as the leading digital pharma powerhouse in Egypt and the partner of choice for payers and providers. Ezdehar’s funding and partnership at this time will be critical for us to continue to drive change and support us in our mission to reduce healthcare costs, facilitate patients’ access to services, and improve their overall experience.”
On his part, Amir Mishriky, managing director at Ezdehar commented, “The company recognised an untapped opportunity in the medication value chain and created an end-to-end management scheme starting from prescription generation to fulfilment that proved to be instrumental to patients and service providers in the market.”
He added, “We are excited about Yodawy’s growth story, and truly believe in the prospect and potential it holds in disrupting the industry.”
The investment falls within Ezdehar’s strategy of investing in and supporting mid-cap companies undergoing transformative growth and marks Ezdehar’s entry into the healthtech and pharmaceutical retail market. Ezdehar Mid-Cap Fund II comprises contributions from several international institutions; foremost among them are the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), British International Investment (BII), the Dutch Entrepreneurial Development Bank (FMO), the International Finance Corporation (IFC), Egyptian American Enterprise Fund (EAEF), and the Belgian Investment Company for Developing Countries (BIO) – in addition to a group of Egyptian investors including banks and other investment institutions.
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