Decentralized Healthcare: Redbird Secures $1.5 Million Seed Funding

Effective illness tracking and management, particularly for chronic conditions, necessitates a shift towards decentralized healthcare. Convenience is also paramount, ensuring a patient’s medical history remains accessible regardless of location.

Redbird's Seed Investment and Expansion

Redbird, a health tech startup based in Ghana, is facilitating convenient access to medical testing and providing doctors and patients with real-time test result visibility. The company has recently announced a $1.5 million seed investment.

The investment round saw participation from the Johnson & Johnson Foundation, Newton Partners (through the Imperial Venture Fund), and Founders Factory Africa. This brings Redbird’s total funding to $2.5 million to date.

Founding and Early Vision

Redbird was established in 2018 by Patrick Beattie, Andrew Quao, and Edward Grandstaff. Beattie, previously a founding scientist at a Boston-based medical diagnostics startup, focused on the development of rapid diagnostic tests.

During a 2016 visit to Accra, Beattie connected with Quao, a Ghanaian pharmacist, at a hackathon. They discovered a shared interest in advancing medical testing capabilities.

Beattie observed a disparity between the innovative tests being developed in the U.S. and their availability in Ghana. Quao noted that Ghanaian pharmacies, often the first point of healthcare contact, were primarily focused on transactional sales.

Building a Tech-Enabled Testing Network

Recognizing the need to integrate medical testing into Ghanaian pharmacies, Beattie and Quao sought technical expertise. They recruited Grandstaff as Redbird’s CTO, while Beattie and Quao assumed the roles of CEO and COO, respectively.

Services Offered and Technology

Redbird empowers pharmacies in Ghana to offer rapid diagnostic testing for ten different health conditions. These include tests for anaemia, blood sugar, blood pressure, BMI, cholesterol, Hepatitis B, malaria, typhoid, prostate cancer screening, and pregnancy.

The company provides partner pharmacies with the necessary equipment, supplies, and software. Redbird Health Monitoring, the company’s software, networks all partner pharmacies, allowing patients to create and maintain their medical testing records following quick tests administered at these locations.

Revenue Model and Growth

Instead of a traditional SaaS model, Redbird’s revenue is generated through the sale of disposable test strips. This approach, according to Beattie, resonates better with their customer base.

“Pharmacies partnering with Redbird receive free access to the software and support, provided they purchase consumables from us,” explained the CEO. “This aligns our financial success with theirs, and ultimately, with patient utilization.”

Currently, Redbird collaborates with over 360 pharmacies, primarily in Accra and Kumasi. The company has doubled its pharmacy network since 2019, despite the challenges posed by the pandemic. These pharmacies have collectively performed over 125,000 tests for more than 35,000 registered patients over the past three years.

Future Plans

The seed funding will be used to expand Redbird’s operations within Ghana and to enter new, currently undisclosed, markets.

Early Achievements and Accelerator Programs

In 2018, Redbird participated in the Alchemist Accelerator shortly before its official launch. It was the second African startup, following mPharma, to be accepted into the six-month program. The company also joined Founders Factory Africa in April of last year.

The Future of Healthcare in Africa

Beattie anticipates a significant increase in chronic diseases across Africa. Projections indicate a 156% rise in diabetes cases over the next 25 years.

He believes that decentralized, digitized healthcare represents a crucial leap forward for sub-Saharan Africa. “The increasing prevalence of chronic disease will render a highly centralized health system unsustainable,” he stated.

He further noted that this trend isn’t exclusive to Africa, but the existing infrastructure in the region necessitates innovation and adaptation within healthcare systems at a faster pace.

Patient-Centric Approach

Beattie emphasizes the importance of aligning technology and data with patient behaviors and preferences. He believes that even the most advanced data-driven improvements are ineffective if they don’t result in a valuable service that patients actively utilize.

Redbird’s future strategy involves playing a more prominent role in the development of decentralized healthcare networks that prioritize accessibility for the average patient.

Investor Perspective

U.S. and South African early-stage VC firm Newtown Partners was drawn to Redbird’s decentralized business model. Llew Claasen, the firm’s managing partner, commented:

“We are enthusiastic about Redbird’s decentralized model, which facilitates rapid diagnostic testing at the primary care level within local pharmacies. Their digital health record platform has the potential to significantly enhance the healthcare value chain and is a vital step towards improving healthcare outcomes in Africa. We are eager to support the team as they validate their business model and expand across the continent.”

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