West African private equity fund manager CardinalStone Capital Advisers (CCA) has invested $6 million in AfyA Care as part of the company’s Series A capital raise.
AfyA Care is a healthcare group that offers hospital care, health insurance, and services related to health tech in Nigeria.
The investment fits with CCA’s plan to back high-potential growth businesses that can make a positive difference in their communities and give investors good returns over time.
CardinalStone Capital Advisers Partner Femi Ogunjimi said, “We are always looking to work with companies that have shown they can disrupt and change industries. Given the large gaps in health care in Nigeria and sub-Saharan Africa in general.”
“It was essential to collaborate with individuals who have an in-depth understanding of the sector, who appreciate how pressing and extensive the issue is, and who are prepared to put in the effort required to achieve success,” We’re looking forward to helping the team at AfyA Care build a healthcare ecosystem for different parts of the market. We’re excited to see where AfyA Care goes in five years,” Ogunjimi said.
We’re looking forward to helping the team at AfyA Care build a healthcare ecosystem for different parts of the market, and we’re excited to see where AfyA Care will be in 5 years,” Ogunjimi said. An EY report says that Nigeria’s healthcare market is grossly underserved, with a patient-to-bed ratio of 2,000:1 compared to a peer average of 1,000:1 and a low rate of health insurance coverage of less than 5%.
AfyA Care is set up to take advantage of these market opportunities by first focusing on the Lagos market and then expanding to key cities in Nigeria and West Africa over the next five years. The company will use the money to hire more experienced workers, grow its hospital brands, and scale up its Health Maintenance Organization (HMO) and proprietary health tech solutions to improve healthcare in Nigeria and elsewhere.
AfyA Care was launched in 2019 and invested in Nigeria’s healthcare assets. Its goal is to make healthcare easier to get and cheaper. AfyA Care is building vertically integrated healthcare institutions and optimizing delivery models that meet the capacity and demand of its hospitals. It is going after low-, mid-, and mid-high-end hospitals, health insurance, and health tech companies.
But under the R-Jolad Hospital brand, the company has a portfolio of hospitals with 215 beds to serve its low- to mid-market customers. It is also building a 140-bed hospital for the mid-to-high-end market under the name Oakwood Medical Centre.
Tosin Runsewe, CEO of AfyA Care, said this about the new partnership with CCA: “We are excited to announce our partnership with CardinalStone Capital Advisers.”CCA has been beneficial, getting the money to build capacity and putting AfyA Care’s vision into action with its expertise. Our plans to grow are backed by years of experience in different fields, and we’re happy to be working with a company that shares our goal of changing the future of healthcare in Nigeria and beyond.
Also, health providers like EROM Diagnostics, Octosoft (health tech), and Bastion HMO are among the other brands managed by AfyA Care (health insurance). Additionally, this investment in AfyA Care is the fourth investment made by CCA from its $64 million CCA Growth Fund (CCAGF), which focuses on growth-stage small and medium-sized enterprises (SMEs) in Nigeria and Ghana. I-Fitness, Appzone, and Quality Foods Africa are some other businesses that are part of its portfolio.