Two years after acquiring Guardian Health, one of Uganda’s top five pharmacy chains, MYDAWA, a Kenya-based e-healthcare firm, has reaffirmed its commitment to regional expansion. This comes on the heels of its 100% acquisition of The Medical Concierge Group (TMCG), the parent company of Rocket Health, Uganda’s pioneering telemedicine provider.
With these strategic acquisitions, MYDAWA is not only solidifying its foothold in Uganda but is also positioning itself as a dominant healthcare player across Africa. Speaking to CEO East Africa Magazine, MYDAWA’s Founder and Chairman, Neil O’Leary, shared insights into the company’s growth trajectory, investment plans, and the future of digital healthcare in the region.
Guardian Health: A Strong Foundation in Uganda’s Pharmacy Industry
The acquisition of Guardian Health in 2023 was a significant move for MYDAWA. According to O’Leary, Guardian Health has been a profitable and well-managed business for years. Under the leadership of a capable management team in Kampala, the pharmacy chain continues to experience annual growth of 30-40%, making it an attractive addition to MYDAWA’s ecosystem.
“Guardian Health is performing exceptionally well. It grows between 30 and 40% annually and is deeply engaged at the community level. Their pricing strategy, combining both local and imported products, has made them a trusted healthcare provider in Uganda,” O’Leary noted.
MYDAWA’s investment strategy in Guardian Health also reflects pragmatic financial management, including staggered payment arrangements for acquisitions to ensure optimal cash flow. Despite speculation of tensions surrounding payment structuring, O’Leary dismissed any disputes, stating that all agreements were reached by mutual consent.
Expanding Access to Affordable Medicines: One of the key advantages of the Guardian Health acquisition is expanding access to affordable medicines in Uganda. The pharmacy chain plays a crucial role in ensuring quality healthcare products are available at competitive prices, particularly for low- and middle-income patients. By leveraging MYDAWA’s digital supply chain model, Guardian Health can further improve distribution efficiency and pricing.
Integration with MYDAWA’s Digital Ecosystem: Guardian Health’s well-established brick-and-mortar network complements MYDAWA’s digital-first approach, creating a seamless ecosystem where customers can access both online pharmaceutical services and in-person consultations. This hybrid model is expected to enhance service delivery, reduce stock shortages, and improve access to essential medicines across Uganda.
Rocket Health: Elevating Telemedicine with MYDAWA’s Ecosystem
While Guardian Health was already a profitable acquisition, MYDAWA’s takeover of Rocket Health in 2024 represents a more strategic play—leveraging telemedicine to complement its brick-and-mortar presence.
Rocket Health, a pioneer in Uganda’s telehealth space, initially struggled with scaling beyond acute consultations. MYDAWA’s entry provided an opportunity to integrate Guardian Health’s pharmacy network with Rocket Health’s telemedicine solutions, thereby enhancing service delivery.
“The challenge Rocket Health faced was scaling. With Guardian Health’s existing customer base, we are now able to combine telemedicine with in-person pharmaceutical services, creating a seamless healthcare experience for patients,” O’Leary explained.
The acquisition has already borne fruit—December 2024 was Rocket Health’s best-performing month ever, a significant achievement in what is traditionally a slow period for the healthcare sector.
Prioritizing Chronic Care Management: A major shift under MYDAWA’s leadership is Rocket Health’s transition towards chronic care management. Previously, Rocket Health primarily offered acute consultations, but MYDAWA is repositioning it as a platform for managing long-term conditions such as diabetes, hypertension, and cardiovascular diseases.
This focus on chronic care aligns with insurance companies’ priorities, ensuring that patients receive continuous and preventive care rather than seeking costly hospital treatments for preventable complications.
Scaling Across East Africa: Beyond Uganda, MYDAWA plans to replicate Rocket Health’s telemedicine model in Kenya, integrating it with its e-commerce and digital pharmacy platform. This move is expected to enhance access to remote healthcare services, home-based consultations, and medicine delivery, particularly in underserved areas.
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MYDAWA’s rapid expansion is backed by some of the most prominent investment funds in healthcare, including Creadev Africa, Alta Semper, and AAIC (Asia Africa Investment & Consulting). These investors have consistently poured capital into MYDAWA, with AAIC and Alta Semper closing their second investment funds in 2024.
With these financial heavyweights in its corner, MYDAWA is well-positioned to execute further acquisitions and expand its services across East Africa and beyond. O’Leary hinted at potential new acquisitions by the end of 2025.
“Our shareholders are committed to making MYDAWA the leading aggregator in Africa’s healthcare space. We are looking at new acquisitions and partnerships to expand our footprint across Sub-Saharan Africa,” he revealed.
The Future: A Hybrid Healthcare Model for Africa
One of MYDAWA’s key differentiators is its commitment to a hybrid model—blending digital healthcare solutions with physical pharmacy infrastructure. In an industry where trust and relationships are crucial, MYDAWA seeks to create an omnichannel healthcare experience, ensuring patients receive high-quality care whether they visit a pharmacy in person or consult a doctor online.
“Many healthcare startups focus too much on technology and forget the importance of relationships. We have learned that patients value trusted interactions with pharmacists and healthcare providers. By integrating digital and physical services, we are creating a model that meets patients where they are,” O’Leary stated.
This click-and-bricks strategy is already proving successful. In Mombasa, Kenya, MYDAWA has observed an even split between online and in-person purchases—a trend that underscores the demand for both digital convenience and face-to-face engagement.
Looking Ahead: Scaling Innovation Across the Continent
MYDAWA’s acquisition of Rocket Health not only strengthens its position in Uganda but also provides a technological foundation for expansion into new markets. O’Leary revealed that MYDAWA plans to deploy Rocket Health’s telemedicine technology in Kenya, further scaling digital healthcare services in the region.
With annual revenue surpassing $20 million and growth rates of 30-40%, MYDAWA is proving that a well-executed hybrid healthcare model can be both profitable and impactful.
“We are now at a stage where MYDAWA is one of the best healthcare models in Africa, if not the best. With our investors, strategic acquisitions, and focus on patient-centric care, we are well on our way to becoming a dominant force in African healthcare,” O’Leary concluded.
Final Thoughts: A Healthcare Giant in the Making
MYDAWA’s regional expansion strategy, driven by Guardian Health’s pharmacy network and Rocket Health’s telemedicine innovation, is a testament to Africa’s evolving healthcare landscape. With strong financial backing, a clear growth strategy, and an unwavering commitment to patient care, MYDAWA is poised to become a major player in Africa’s digital health revolution.
As the company looks toward new acquisitions, strategic partnerships, and scaling its hybrid model, MYDAWA’s trajectory suggests that it is not just expanding but redefining healthcare delivery in Africa.
