Healthtech startup Arogga raises $5.5m seed funding to combat counterfeit medicine

Local healthtech startup Arogga has raised a total of $5.5 million in its seed funding round to enhance access to genuine, affordable medication in Bangladesh.

Seed funding is the first official equity funding stage. It typically represents the first official money a business venture or enterprise raises.

Using technology to digitise the pharmaceutical supply chain, Arogga aims to significantly improve healthcare in the country, the company said in a press statement on Wednesday.

The successful funding round will enable them to expand their operations and make a positive impact on healthcare accessibility in Bangladesh, it added.

Raising a $5.5m seed funding in the existing economic environment is a positive sign of investor confidence in Arogga's mission and business model, the company states, adding that it looks to use the money to scale up its operations and reach more people.

The startup successfully secured $4m in new capital, building on the $1.5 million raised the previous year.

The funding round was led by The Venture Collective, a venture capital firm based in the US, with participation from several other investors, including The Blue Collective (US), Iterative (Singapore), Stella Maris Partners (Mexico), as well as returning investors Ratios Ventures (UK), Sketchnote Partners (Spain), and Epic Angels (Singapore).

Besides, local Bangladeshi investors – IDLC Finance and Startup Bangladesh Limited – are also investors in Arogga.

The round saw the involvement of prominent European angel investor and exited unicorn founder, Alex Rittweger. This substantial funding should further support the startup's growth and development.

Cat Middleton, partner at The Venture Collective, said, "We were excited to lead this round of funding, in what is our first investment in Bangladesh.

"Bangladesh is on track to become a trillion-dollar economy by 2040 making now the opportune time for a company like Arogga to build upon its early success of delivering 11m medications to becoming the go-to, comprehensive healthcare platform in the country."

Arogga was founded by Rosina Mazumder (CEO), Fahad Hossain (COO), Shamim Hasan (CTO), and Yawar Mehboob (CFO) in December 2020.

Rosina Mazumder said, "We are focused on building our product on the best technology, with the best operations and in-house logistics and brilliant customer care. The priority remains on increasing penetration in the capital Dhaka, and also expanding hubs to two other major cities by Q2 2024. We have worked very hard to build trust in our brand and as a team, our focus is to continue building a platform for all healthcare needs of our customers."

Epic Angels, also followed on in the round, having invested back in 2021 with their first ever portfolio investment being in Bangladeshi based healthtech startup Arogga.

Maaike Doyer, founder of Epic Angels, said, "From our very first interaction, Epic Angels, as the largest global female-only investment collective investing in APAC, recognized the unparalleled drive and vision of Arogga, steered confidently by their female CEO. Arogga's story with Epic Angels began in 2021. It was a leap of faith based on a shared vision and mutual trust. Today, with our follow-on investment, that leap has propelled Arogga to be our largest investment, reflecting their undeniable growth and relentless commitment to health innovation."

Specifically for this round, over 37 female angel investors across eight countries and three continents syndicated a follow-on investment in Arogga, being their largest investment to date.

The Arogga App is a comprehensive health solutions platform designed to provide you with a wide range of genuine medicines and healthcare products. It offers a user-friendly search feature that allows you to quickly find the products you need, with detailed information about each medicine to help you make informed health decisions.

One of the notable features of the Arogga App is its rewards and discounts system. You can save up to 10% on your purchases and also refer friends and family to earn Arogga cash, making it a cost-effective option for your healthcare needs.

Additionally, the app includes a "Compare" function, which lets you discover similar medicines from different companies and make easy product comparisons. If you have questions or need assistance, the "Chat" button allows you to connect instantly with the customer service team.

Arogga has made significant strides in Bangladesh, serving more than 6,00,000 users and achieving an eightfold increase in revenue since 2021. The platform offers over 32,000 medicines and healthcare products from over 500+ manufacturers.