Nigeria's MDAAS Launches New Health Tech Product with $2.3M Seed Extension

Healthcare Accessibility and Preventative Care in Nigeria

The limited availability of healthcare in Nigeria, and across much of Africa, is a well-known issue requiring substantial improvement. Interestingly, even where access exists, a significant portion of the population prioritizes treating illnesses rather than proactively preventing them.

Consequently, individuals often discover life-threatening conditions, particularly noncommunicable diseases (NCDs), at advanced stages. Improving access to both diagnostic services and preventative care is crucial, and Nigerian diagnostic startup MDaaS Global is focused on expanding these services.

MDaaS Global: A History of Growth

Founded in 2016 as an abbreviation for ‘medical devices as a service’, MDaaS operates a network of technologically advanced diagnostic centers throughout Nigeria. The company initially secured a $1 million seed funding round two years ago.

Including previous investments over the last five years, MDaaS has now raised a total of $3.7 million, recently closing a seed extension round of $2.3 million to facilitate expansion across Nigeria.

This funding round included participation from lead investor Newtown Partners, through its Imperial Venture Fund, alongside CRI Foundation, and returning investors FINCA Ventures, Techstars, and Future Africa.

The Genesis of MDaaS

The concept for MDaaS originated when co-founder and CEO Oluwasoga Oni, alongside his MIT classmates, were challenged to devise a solution with the potential to positively impact a billion lives. Drawing from his medical background, he selected a problem he personally understood.

“My motivation stemmed from a desire to address a challenge experienced by my father,” Oni explained to TechCrunch. “He operated a 30-bed hospital and consistently struggled to source high-quality medical equipment at affordable prices.”

Oni, along with Opeyemi Ologun, Genevieve Barnard Oni, and Joseph McCord, initially connected U.S.-based secondary medical equipment marketplaces with Nigeria. They facilitated the import, service, and deployment of equipment through rental, lease, or direct sale.

Shifting Focus to Aggregated Demand

After some time, the founders realized the fundamental issue wasn’t simply equipment availability, but rather a matter of financial viability. The cost of equipment often exceeded the revenue generated from patient care, making ownership unsustainable for doctors.

MDaaS then transitioned to an aggregation model, identifying clinically underserved areas, establishing centralized diagnostic centers, and consolidating demand from smaller hospitals within those communities. Their first center launched in Ibadan, a city in southwestern Nigeria.

Following acceptance into Techstars, the startup has expanded to include six additional centers across various Nigerian cities.

Services Offered at MDaaS Diagnostic Centers

MDaaS diagnostic centers provide a comprehensive suite of services. These include imaging services like digital x-ray and ultrasound, as well as cardiac services such as ECG and echocardiograms.

Furthermore, they offer a wide range of lab services, encompassing chemistry analysis, immunoassay, hematology, and general health checks.

Introducing SentinelX: Proactive Health Monitoring

The development of SentinelX was spurred by the pandemic last year. While assisting with COVID-19 testing, MDaaS also began screening patients for underlying health conditions.

“We discovered that many individuals were unaware of pre-existing conditions like high blood pressure and high cholesterol, rather than finding a significant number of COVID cases,” Oni stated.

Over the past two decades, NCDs have increased significantly in sub-Saharan Africa, driven by factors such as unhealthy diets, reduced physical activity, hypertension, and diabetes. Projections indicate that NCDs will become the leading cause of mortality on the continent by 2030.

Impact and Reach to Date

To date, MDaaS has successfully provided diagnostic services to over 40,000 patients in underserved communities. They have completed more than 80,000 diagnostic tests across cardiology, radiology, neurology, laboratory services, and general health assessments.

The company’s referral network includes over 750 clinicians, and they have established partnerships with more than 500 health facilities and 10 Health Maintenance Organizations (HMOs).

SentinelX: A Personalized Care Program

Leveraging its existing infrastructure, MDaaS developed SentinelX as a customer-centric product. The platform offers a personalized care program accessible for a one-time fee of N35k (~$70) providing year-round access to a doctor.

Users can undergo a series of tests evaluating 60-70 biomarkers to assess their risk for various diseases, including cancers, diabetes, kidney disease, and heart disease. Clinical and family history, along with demographic data, are incorporated into a comprehensive analysis.

MDaaS then creates a customized care plan for customers identified with potential health concerns following screening.

Future Plans and Expansion

SentinelX is currently in private beta, with a planned public launch in September 2021. Oni believes the $70 annual fee is affordable, emphasizing MDaaS’s long-term vision.

“Our goal is to address the issue of non-consumption. Many Nigerians do not undergo annual screenings, which should be a routine practice. Instead, they typically seek medical attention only when they become ill, at which point treatment costs are significantly higher,” Oni explained.

Through SentinelX, MDaaS aims to encourage widespread pre-screening, fostering a culture of preventative care and driving demand for comprehensive diagnostics in the future. This service represents one of many potential applications built upon the company’s established diagnostic infrastructure.

However, scaling this infrastructure has presented capital-intensive challenges, particularly in navigating the economic fluctuations frequently experienced in Nigeria. Determining appropriate pricing for patients has also been complicated by the economic recession.

Addressing the Brain Drain

The economic recession also impacts MDaaS’s most valuable asset: its medical professionals. The ongoing “brain drain” – the emigration of Nigerian doctors seeking better opportunities abroad – poses a significant challenge to the Nigerian healthcare system.

“While it appears as a theoretical issue in the news, it is a very real concern for us, as we are experiencing staff departures,” the CEO noted. MDaaS is addressing this by investing in the training and development of younger doctors, with commitments to a period of service within the company.

Looking Ahead

With the new funding, MDaaS plans to expand its physical presence across Nigeria by adding six more diagnostic centers this year. The company aspires to become one of Nigeria’s three largest diagnostic centers.

The CEO also indicated potential for pan-African expansion to countries with similar challenges, although no specific timeline was provided. By 2025, MDaaS aims to operate 100 centers across the continent, serving one million patients annually.

Llew Claasen, managing partner at Newtown Partners, commented, “The infrastructure gaps, low physician density, delays in diagnostics, and lack of health data visibility contribute to suboptimal medical care for many consumers in sub-Saharan Africa. We believe that MDaaS’s physical diagnostic infrastructure, combined with its data collection and value-added software services, has the potential to transform healthcare delivery and improve health outcomes for a vast number of underserved individuals.”