11 Investors Investing in African Tech

Investing in African tech is reshaping healthcare! Discover top investors backing Africa’s healthtech boom and driving real impact. Here, we discuss How African Healthtech Startups Can Attract the Right Investors and Challenges Facing Healthtech Startups in Africa. As well as talking about investors like Jaza Rift Ventures: Early-Stage VC with a Bold Vision and Vital Capital: Impact-Driven Healthcare Investments.

Introduction: Africa’s Healthtech Boom

Africa’s healthtech industry is witnessing an unprecedented surge in innovation and investment. Despite a 39% drop in overall tech investments across the continent in 2023, healthtech startups defied the odds, securing $550 million in funding over the past three years. This resilience is driven by advancements in telemedicine, AI-powered diagnostics, and online pharmacies, which are rapidly transforming healthcare accessibility.

Notably, 31% of this funding went to women-led startups in 2023, a promising shift toward inclusivity in a traditionally male-dominated investment landscape. The sector is projected to grow at a 25% compound annual growth rate (CAGR) through 2025, reaching an estimated $11 billion market size.

But who are the key players fueling this transformation? Which investors are shaping Africa’s digital healthcare future? In this article, we explore 11 leading investors who are backing Africa’s most promising healthtech startups, from early-stage incubators to large-scale impact funds. Read more on this posts to see those Investing in African tech.

1. Villgro Africa: The Seed-Stage Powerhouse

Villgro Africa has been a game-changer for healthtech startups in East Africa since its launch in 2015. Originally part of India’s Villgro Network, the Nairobi-based incubator has since evolved into an independent powerhouse, investing over $1.2 million in healthtech companies through a mix of grants and equity funding. Read more on this posts to see those Investing in African tech.

What Makes Villgro Africa Unique?

Villgro Africa is not just about funding—it’s a full-scale incubator providing:

• Seed funding: Startups receive between $50,000 to $1 million in grants and investments.
• Business mentorship: Hands-on guidance from industry experts.
• Network access: Connections to global partners, investors, and customers.

One of Villgro’s standout programs is its three-year incubation initiative, which has helped startups like Dawa Health, BioTec, Swift Lab, and A-Lite bring revolutionary solutions to market.

Impact Snapshot:

• Over 40 healthtech startups supported.
• $18 million in foreign investment attracted for African health solutions.
• Healthcare services improved for 10 million people.

Beyond funding, Villgro is tackling systemic challenges in African healthcare, such as gender disparity in startup financing. Their commitment to women-led startups is reflected in their efforts to close the funding gap and ensure more female entrepreneurs thrive in healthtech.

See also: 15 Best Cryptocurrency Exchange Platforms to Watch Out For

2. Jaza Rift Ventures: Early-Stage VC with a Bold Vision

Jaza Rift Ventures is an early-stage venture capital firm headquartered in Nairobi. Unlike traditional investors, Jaza Rift zeroes in on high-impact startups that can scale quickly and solve real healthcare problems across Africa.

What They Offer:

• Investment range: $50,000 to $500,000 for pre-seed and seed-stage startups.
• Industry focus: Healthtech, medtech, and digital health platforms.
• Incubation support: Partnerships with accelerators and healthcare organizations.

One of Jaza Rift’s biggest success stories is Zuri Health, a Kenyan telemedicine platform that raised $1.1 million in seed funding to expand its reach. The firm has also backed eight other startups, all working on groundbreaking solutions in diagnostics, e-pharmacy, and healthcare logistics.

Why Jaza Rift Stands Out

Unlike Villgro, which offers structured incubation, Jaza Rift provides direct VC-style funding with minimal red tape. This means startups get quick capital injections and mentorship from experienced healthcare investors, helping them launch faster.

Fast Fact: Africa’s e-health market is projected to hit $11 billion—and Jaza Rift is determined to shape this growth. Read more on this posts to see those Investing in African tech.

3. Investment Funds for Health in Africa (IFHA): Scaling Healthcare Infrastructure

While Villgro and Jaza Rift focus on early-stage funding, IFHA is a different beast—it specializes in growth-stage investments, targeting companies that are ready to scale massively.

• Investment range: $5 million to $20 million.
• Focus areas: Hospitals, healthcare insurance, pharmaceuticals, and medical devices.
• Regions: Sub-Saharan Africa, with an emphasis on East and West Africa.

IFHA’s Impact on Africa’s Healthcare Landscape

Since its launch in 2007, IFHA has been instrumental in building healthcare infrastructure across Africa. The firm currently manages the $167 million IFHA-II fund, with backing from global giants like Pfizer, which invested $15 million into their portfolio.

See also: 10 African Billionaires You’ve Never Heard of – Until Now

Strategic Investments

Some of IFHA’s most notable investments include:

• Pyramid Group – A medical equipment distributor serving hospitals across East Africa.
• Health insurance providers – Expanding access to affordable medical coverage.
• Primary care chains – Investing in clinics and telehealth platforms.

The Big Picture

Africa’s healthcare sector desperately needs infrastructure, and IFHA is leading the charge by funding hospitals, insurance companies, and biotech firms. This big-ticket investment strategy ensures that Africa’s healthcare systems evolve beyond startups and into long-term, sustainable businesses. Read more on this posts to see those Investing in African tech.

4. HealthCap Africa: Bridging the Funding Gap for Healthcare Startups

One of the biggest challenges in Africa’s healthtech industry is the funding gap between early-stage startups and large-scale investors. Many promising startups struggle to secure the capital needed to scale beyond the pilot phase. This is where HealthCap Africa steps in.

What Does HealthCap Africa Do?

HealthCap Africa is a growth-stage investment firm that focuses on bridging the funding gap for startups that have proven business models but need financial backing to expand. Read more on this posts to see those Investing in African tech. The firm provides:

• Growth-stage funding: Investments between $1 million and $10 million.
• Market expansion support: Helping startups scale across multiple African markets.
• Strategic mentorship: Offering operational guidance, especially in regulatory navigation.

Key Investments & Impact

HealthCap has backed startups across Nigeria, Kenya, Ghana, and South Africa, particularly in digital health, diagnostics, and pharmaceutical distribution.

Some of its standout investments include:

• mPharma – A Ghanaian startup improving drug distribution across Africa.
• Helium Health – A Nigerian healthtech company digitizing patient records.
• 54gene – A biotech firm leveraging African genetic data for medical research.

Fast Fact: HealthCap Africa has invested over $80 million in 20+ African health startups, making it one of the largest dedicated healthtech investors on the continent. Read more on this posts to see those Investing in African tech.

See also: Revolutionary Drones in E-commerce Delivery: Transforming Africa’s Logistics

5. i3 Initiative: Unlocking Corporate Partnerships for Healthtech Startups

Unlike traditional venture capital firms, the Investing in Innovation (i3) Initiative is a unique program that connects African healthtech startups with corporate partners, grants, and mentorship opportunities.

Launched in 2022, i3 is a $7 million initiative backed by the Bill & Melinda Gates Foundation, with support from Cencora, Merck, Microsoft, and Chemonics International. Read more on this posts to see those Investing in African tech.

What Sets i3 Apart?

Instead of providing direct equity funding, i3 focuses on:

• Non-dilutive capital (grants that don’t require startups to give up ownership).
• Corporate partnerships with pharmaceutical and logistics companies.
• Business acceleration programs to fast-track growth.

Success Stories from i3

i3 has supported 60 healthtech startups across Africa in just two years. Some notable ones include:

• Duhqa (Kenya) – A B2B platform improving medicine distribution to small pharmacies.
• Remedial Health (Nigeria) – A startup digitizing pharmaceutical supply chains.
• Viebeg (Rwanda) – AI-powered medical supply forecasting.
• Why This Matters: Africa’s healthcare sector loses over $2 billion annually due to inefficiencies in supply chains. By connecting startups with large corporates, i3 is solving critical distribution challenges at scale. Read more on this posts to see those Investing in African tech.

6. Vital Capital: Impact-Driven Healthcare Investments

Vital Capital is an impact investment fund that focuses on long-term, sustainable healthcare projects in Africa. Unlike traditional VC firms, Vital Capital is mission-driven, meaning it prioritizes social impact alongside financial returns.

How Does Vital Capital Invest?

• Large-scale investments of $5 million to $25 million.
• Focus on hospitals, health infrastructure, and biotech startups.
• Partnerships with governments and NGOs to maximize impact.

Major Investments

Vital Capital has funded several high-impact healthcare projects, including:

• Luanda Medical Center (Angola) – A state-of-the-art hospital improving healthcare access.
• Evercare Health Fund – A network of affordable private hospitals across Africa.
• AfriMed Group – A healthcare provider expanding medical services in underserved regions.
• Vital Capital’s Vision: “We don’t just invest in startups—we invest in systems that will change healthcare access for generations.”

See also: The Most Powerful Tech CEOs in Africa: Titans of the Digital Revolution

7. Founders Factory Africa: A Hybrid Accelerator & VC Fund Powering Healthtech Startups

Founders Factory Africa (FFA) is one of the most influential startup accelerators and venture funds on the continent. Unlike traditional investors, FFA operates as both a venture builder and a funder, helping healthtech startups refine their products, scale rapidly, and secure further investments. Read more on this posts to see those Investing in African tech.

How Does Founders Factory Africa Support Health Startups?

FFA provides early-stage funding, hands-on operational support, and global networking opportunities for African healthtech founders. Their approach includes:

• Seed funding ranging from $100,000 to $250,000 per startup.
• 12-month acceleration program to refine business models and operations.
• In-house team of experts offering technical and marketing support.

Notable Healthtech Investments by FFA

Since launching in 2018, Founders Factory Africa has helped over 55 startups scale across sectors like telemedicine, AI-driven diagnostics, and digital health platforms. Read more on this posts to see those Investing in African tech.

Some standout health startups backed by FFA include:

• RxAll (Nigeria) – A deep-tech AI platform that detects fake drugs using a portable scanner.
• Healthlane (Cameroon) – A preventive healthcare startup offering personalized health plans.
• Ilara Health (Kenya) – A medical diagnostics startup improving access to affordable lab testing.
• Impact in Numbers: FFA-backed startups have gone on to raise over $50 million in follow-on funding from global investors.
• Why It Matters: African health startups face a 70% failure rate due to funding and operational challenges. FFA’s venture-building approach reduces the risk of failure and maximizes growth potential.

8. Digital Health Africa Fund: The First Dedicated Digital Health Investment Fund

As Africa’s first-ever investment fund dedicated to digital health, the Digital Health Africa Fund (DHAF) is reshaping how technology is used in healthcare across the continent.

What Makes DHAF Unique?

Unlike generalist investors, DHAF focuses solely on digital health startups that leverage technology to improve medical services. Their investment criteria include:

• AI-driven diagnostics for faster disease detection.
• Telemedicine platforms that expand doctor access in rural areas.
• Blockchain-powered medical records to solve patient data challenges. Read more on this posts to see those Investing in African tech.

Key Investments & Impact

DHAF has invested in 20+ startups since launching in 2021. Some of its key portfolio companies include:

• Vezeeta (Egypt) – A leading telehealth platform connecting patients with doctors.
• DabaDoc (Morocco) – A digital booking system making doctor appointments easier.
• Zuri Health (Kenya) – A WhatsApp-based telemedicine service for remote consultations.
• Funding Capacity: DHAF offers $500,000 to $3 million in equity funding per startup, with a focus on Series A and B rounds.
• The Big Picture: Africa’s digital health market is projected to be worth $11 billion by 2025. DHAF is strategically positioned to capitalize on this explosive growth.

See also: Autonomous Vehicles in Africa: A Mind-Blowing Innovation or Just Hype?

9. LeapFrog Investments: A $2 Billion Fund Focused on African Health & Insurance

LeapFrog Investments is one of the largest impact investment funds in the world, managing over $2 billion in assets. A major chunk of its portfolio is dedicated to health insurance, digital healthcare, and medical infrastructure in Africa. Read more on this posts to see those Investing in African tech.

Why Health Insurance?

One of Africa’s biggest healthcare challenges is out-of-pocket medical expenses, which leave over 100 million people at financial risk every year. LeapFrog aims to solve this by investing in affordable health insurance solutions. Read more on this posts to see those Investing in African tech.

Major Investments by LeapFrog

LeapFrog has backed multiple health insurance and healthcare providers across Africa, including:

• BIMA (Ghana, Kenya, Tanzania) – A mobile-based health insurance provider.
• Goodlife Pharmacy (East Africa) – A pharmacy chain offering affordable health check-ups.
• PharmAccess (Nigeria, South Africa) – A digital platform expanding insurance coverage.
• Impact in Numbers: LeapFrog-backed companies have served over 200 million people across emerging markets, with a strong presence in Africa.
• What’s Next? LeapFrog is expanding into telemedicine, AI-driven health insurance, and blockchain-based patient data management to improve access and affordability.

10. AXA Impact Fund: A Global Insurance Giant Driving African Healthtech Growth

When it comes to health-focused impact investments, AXA Impact Fund is a heavyweight. Backed by AXA Group, one of the world’s largest insurance companies, this fund focuses on innovative health solutions that improve access to affordable healthcare in emerging markets, including Africa.

Why AXA Impact Fund Invests in African Healthtech

Africa faces a 60% gap in health insurance coverage, leaving millions vulnerable to catastrophic medical expenses. AXA Impact Fund is solving this problem by:

• Investing in mobile-based health insurance startups to reach underserved populations.
• Supporting AI-powered health analytics to improve patient diagnostics.
• Funding digital health platforms that expand access to remote medical care. Read more on this posts to see those Investing in African tech.

Key Investments in African Healthcare

Since launching, AXA Impact Fund has invested in multiple healthtech startups and insurance providers, including:

• MicroEnsure (Ghana, Kenya, Nigeria) – A digital microinsurance platform offering low-cost health coverage.
• Hello Doctor (South Africa) – A telemedicine platform that connects patients with doctors via mobile apps.
• mPharma (Ghana, Nigeria, Kenya, Zambia) – A pharmaceutical tech startup improving drug affordability and accessibility.
• Funding Model: AXA Impact Fund typically provides $1 million to $5 million in growth-stage funding, with a strong focus on scaling proven business models.
• Why It Matters: With 70% of healthcare expenses in Africa paid out-of-pocket, AXA’s approach to affordable health financing is a game-changer. Read more on this posts to see those Investing in African tech.

See also: Robots Taking Over? How AI Could Wipe Out Millions of Jobs in Africa

11. Novastar Ventures: The Powerhouse Investor Fueling African Healthcare Innovations

Novastar Ventures is one of Africa’s most active venture capital firms, managing over $200 million in assets. Their investment philosophy? Backing scalable businesses that solve critical health and infrastructure challenges.

Novastar’s Healthtech Investment Strategy

Novastar is laser-focused on healthcare accessibility, affordability, and innovation. They specifically look for startups that:

• Leverage technology to improve healthcare delivery.
• Have the potential to scale regionally or continent-wide.
• Solve affordability issues through innovative pricing models. Read more on this posts to see those Investing in African tech.

Notable Healthcare Startups Backed by Novastar

• Turaco (Kenya, Nigeria, Uganda) – A B2B2C insurance startup offering ultra-affordable health insurance to low-income populations.
• LifeBank (Nigeria, Kenya) – A blood and oxygen supply logistics company using AI and blockchain to improve medical supply chains.
• Ilara Health (Kenya) – A digital diagnostics platform making lab testing more affordable in low-income communities.
• Investment Range: Novastar typically funds early and growth-stage startups, with investments ranging from $500,000 to $5 million.
• Why It’s a Big Deal: Novastar-backed companies have collectively impacted over 30 million lives, proving that healthtech innovation can be both profitable and life-changing.

How African Healthtech Startups Can Attract the Right Investors

Securing funding isn’t just about having a great idea—it’s about positioning your startup as an investable business. With investors becoming increasingly selective, African healthtech entrepreneurs must be strategic in how they pitch their solutions. Read more on this posts to see those Investing in African tech.

1. Build a Scalable and Sustainable Model

Investors want to back businesses that can grow beyond one country. If your solution is too localized or can’t be replicated in different markets, it may struggle to attract big capital. Startups should:

• Leverage digital platforms to reach more patients.
• Focus on affordability—investors love models that work for low-income populations while still making a profit.
• Ensure compliance with regulations in multiple African countries. Read more on this posts to see those Investing in African tech.

2. Highlight Market Demand and Impact

African healthcare problems are well-known, but startups still need to prove the urgency of their solution. Investors are more likely to fund ventures that can:

• Show traction (user adoption, revenue growth, partnerships).
• Demonstrate measurable impact—e.g., how many people’s lives have improved?
• Use data to validate scalability (expansion potential beyond the launch market).

3. Align With the Right Type of Investors

Not all investors are suitable for healthtech startups. Some focus on short-term returns, while others prefer long-term social impact. Startups should:

• Research investors’ past funding history.
• Tailor their pitch to match the investor’s goals (e.g., VCs focus on high-growth potential, while impact investors prioritize community benefits).
• Network with investors at tech summits, accelerators, and industry events to increase their chances of securing funding. Read more on this posts to see those Investing in African tech.

See also: Top 10 Game-Changing African Edtech Startups Revolutionizing Education

Challenges Facing Healthtech Startups in Africa—And How to Overcome Them

While the African healthtech sector is full of opportunities, it also comes with significant challenges. Understanding these obstacles—and how to navigate them effectively—is crucial for long-term success.

1. Regulatory and Compliance Barriers

Healthcare is a highly regulated industry, and many African countries lack clear healthtech guidelines. Startups often struggle with:

• Slow licensing processes for new medical technologies.
• Unclear policies regarding data privacy and AI-driven healthcare solutions.
• Difficulties integrating with government healthcare systems.

Solution: Work with regulatory consultants, engage with health ministries, and ensure compliance before scaling to avoid legal roadblocks. Read more on this posts to see those Investing in African tech.

2. Limited Infrastructure for Digital Health Solutions

Many African countries still face poor internet access, power shortages, and limited smartphone penetration, making it difficult for healthtech solutions to reach rural areas.

Solution:

• Design offline-friendly solutions that work with SMS and USSD.
• Partner with mobile network operators to leverage their infrastructure.
• Develop solar-powered or battery-efficient medical devices for remote areas.

3. Funding Gaps at the Early Stage

Most investors prefer growth-stage startups, leaving early-stage healthtech companies struggling for funding. Many promising ideas fail due to lack of capital for:

• Product development and clinical trials.
• Hiring top talent and expanding operations.
• Marketing and patient outreach.

Solution:

• Leverage grant funding from global health organizations.
• Join accelerators that provide seed funding and mentorship (e.g., Google for Startups Africa, GSMA Ecosystem Accelerator).
• Explore partnerships with NGOs that share the same healthcare mission. Read more on this posts to see those Investing in African tech.

See also: The Hottest African Markets for Venture Capital in 2025

Conclusion

Africa’s healthtech revolution is no longer a distant dream—it’s happening now. With a rapidly growing population, increasing mobile penetration, and a surge in digital adoption, the continent is primed for disruptive healthcare solutions. Investors are taking note, pouring capital into startups that bridge the healthcare access gap and introduce cutting-edge innovations. We have fully discussed everything about Investing in African tech.

But funding alone won’t drive the transformation. Founders must build sustainable, scalable, and regulation-compliant businesses that don’t just attract investment but create long-term impact. Collaboration between governments, investors, and startups will be the key to unlocking Africa’s full healthtech potential.

For more information on this, visit TechinAfrica.