Kasha, a Rwandan digital retail and last-mile distribution platform for women’s health needs, has raised $21 million in a Series B funding round. The new investment will be used to help the startup expand its health access platform across Africa.
The funding round was led by Knife Capital, a South African venture capital firm. Other companies that participated in the round include Finnfund, Development Finance Corporation (DFC), Tim Koogle, the former CEO of Yahoo, Beyond Capital Ventures, Altree Capital, Bamboo Capital’s BLOC Smart Africa Fund, and Five35 Ventures.
Speaking on the investment, the lead investor, Keet van Zyl, co-founder, and partner at Knife Capital said:
In the current economic climate, it is refreshing to come across such a high-growth capital-efficient business that is female-led and optimized to serve the large mass market segment in Africa, being especially strong at serving women customers. We look forward to being a partner in the Pan-African expansion journey with this purpose-driven dedicated team.
Female healthcare that broadly addresses women’s menstrual and reproductive health has been a subcategory in the African startup ecosystem that has been subtly neglected. This is despite the huge attention investors have given to the African startup ecosystem and private healthcare startups.
The investment in Kasha is a sign of the growing interest in women’s health care in Africa. According to a report, only 55% of women in sub-Saharan Africa have access to modern contraception. Kasha’s platform has the potential to help close this gap and improve the health and well-being of millions of women across Africa.
Emphasizing the need for more focus especially on female healthcare, Joanna Bichsel, Founder and CEO at Kasha said:
We have always understood that women are the most influential customer in the health space, both because they have the most health needs and are decision-makers for health in the household and unlock the rest of the population. Since many health products for women are stigmatized, Kasha has purposely offered a wide variety of products, including personal care products like soap, health products like contraceptives, and household staples like rice.
On Kasha being a strong support system for the African women
Kasha was founded in 2018 by Joanna Bichsel. Initially, the company focused solely on the Rwandan market, employing a direct-to-consumer model that provided last-mile delivery services for health products catering to women and newborns. However, it wasn’t long before small shops began showing interest in purchasing the same products.
Recognizing an opportunity, Klasha expanded into the wholesale sector after obtaining the necessary pharmaceutical license to supply pharmacies, hospitals, and clinics. Kasha’s product offerings cover a wide range, including newborn child health, maternal health, menstrual hygiene, family planning, sexual and reproductive health, and non-communicable diseases.
Now, Kasha operates as a digital retail and last-mile distribution platform for pharmaceuticals and fast-moving consumer goods (FMCGs), with a primary focus on meeting women’s healthcare needs and household requirements.
Its diverse customer base includes individual consumers, small resellers, hospitals, pharmacies, and clinics. These customers have the convenience of ordering various products such as sanitary pads, contraceptives, diapers, and cleaning supplies through Kasha’s website or the USSD service.
Kasha also boasts of capabilities in telehealth and credit, which are key features of successful B2B e-commerce ventures. When consumers place orders without a prescription, Kasha connects them with a doctor, showcasing their commitment to proper healthcare and drug administration. Furthermore, the company offers inventory credit to pharmacies, clinics, and hospitals, which broadens their impact in the FMCG space.
Joanna Bichsel, the founder who was also a former technology adviser to the Bill & Melinda Gates Foundation, stated that their core strategic focus lies in the health sector, where they aim to excel.
Expansion plans?
Having reached this major milestone of closing our Series B, we are even more inspired and determined to achieve Kasha’s mission of being Africa’s leading digital platform for last-mile access to health. The exponential revenue growth we’ve experienced over the last several years was driven by the high market demand for quality, affordable health products and household goods from mass market customers in urban and rural areas of East Africa, and this has proven out our business model and our team’s ability to execute.– Joanna Bichsel.
Since its inception and before this raise, Kasha has raised over $5 million in seed funding. Its most recent raise was in late 2020, following its expansion into Kenya. After the expansion, Kasha secured a $3.6 million Series A from Finnfund, Swedfund, DFC, and Mastercard Corporate.
Kasha currently operates in Rwanda, South Africa, and Kenya. With the new funding, the company plans to expand into other African countries later this year. Kasha also plans to use the funding to develop new products and services, as well as improve its telemedicine and financial services for women.
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