RecoMed successfully raises R4.5m equity led by HAVAÍC
HAVAÍC is pleased to announce that it has led a fully subscribed equity raise of R4.5m in healthtech business RMed Online (Pty) Ltd (“RecoMed”). The investment was secured by HAVAÍC, the ASISA Enterprise Development Fund, and Growth Grid Venture Capital Partners (“Growth Grid”).
ASISA ESD Fund (managed by Edge Growth) was an early investor in RecoMed, and has increased its equity participation with this new round. In terms of the capital raise, R3m will be utilised in the immediate term, and the balance of R1.5m to be drawn at RecoMed’s request within six months of the initial draw down. This investment follows a previous capital equity raise of R6m from the ASISA ESD Fund in January 2016.
RecoMed is South Africa’s largest online healthcare marketplace. RecoMed enables consumers to easily book appointments with a diverse group of healthcare providers 24/7, who in turn benefit from increased patient traffic and practice efficiencies. The company’s online booking platform (www.recomed.co.za) is its core product, and it has developed white-labelled solutions for, amongst others, Discovery Wellness Clinics, Medicross (owned by Netcare), Biokinetics Association of SA, and several other leading national healthcare players.
RecoMed will use the funds raised to strengthen the balance sheet, fund a shift to increasing product traction and towards marketing its products and services. The short-term objectives are to complete several new integrations with leading industry healthcare software systems while steadily growing its current clientele base of 1,400 practitioners; and to double monthly bookings to 40,000 per month.
Sheraan Amod, the Chief Executive Officer of RecoMed, is an experienced tech founder. He recognises that “While we exist in a complex ecosystem with massive potential, traction takes time. It’s extremely encouraging to see RecoMed’s adoption by most of the big players in the healthcare space, even in these early days.” He is, moreover, delighted with the introduction of HAVAIC and Growth Grid as shareholders in the company as he “value the input of experienced investors who are aligned with the vision and understand the dynamics at play.”
Ian Lessem, Chief Executive Officer of HAVAÍC, comments that: “Our desire to lead an investment in RecoMed is the result of how impressed we have been by the quality of the company’s product and leadership. The company has seen off a wide range of domestic competitors because of its focus on developing a platform that really works. We look forward to seeing RecoMed cement its reputation as the market leader in the industry.”
Greg Macfarlane, Investment Head Edge Growth, states: “ASISA ESD Fund provides strategic growth funding and support to businesses that are aligned to the value chains of ASISA’s membership, which comprises most South African asset managers and insurance companies. Edge Growth’s championing of RecoMed came as we recognised the tremendous potential of a technology-enabled value proposition to our member organisations, and to the industry as a whole.”
Roy Fine, Founding Investor and Executive Director of Growth Grid, believes: “This is another exciting investment by Growth Grid, which meets our investment criteria. Growth Grid is committed to identifying and supporting young, entrepreneurial South African companies which will drive future growth and wealth creation.”