SA’s Kena Health Bags R41.4 Million Expansion and Growth Capital From Old Mutual

South Africa’s healthtech player, Kena Health, has closed $2 million in seed extension funding from NEXT176, the innovation subsidiary of African financial services giant Old Mutual, and a further $100 000 from US-based frontier market investor Tofino Capital. Launched in March 2022, this start-up based in Johannesburg, South Africa, has quickly gained market traction and investor attention for its unique healthcare offering.

The Kena Health App allows customers to consult with a doctor, nurse, or mental health professional from their smartphone. This full-stack solution of expert clinical teams and technology work together to deliver seamless, quality healthcare, while lowering the cost of care to millions.

“We are delighted to have Old Mutual’s NEXT176, an investor with a shared vision of sustainable impact, leading this seed extension funding round. The NEXT176 and Tofino Capital funding means that as Kena Health, we are better positioned to realise our ambitions and be part of a wholesale systems change for healthcare in South Africa. We also have our sights set on serving up to 75 million people across the continent,”  says Saul Kornik, CEO and Founder of Kena Health.

The company has grown rapidly since launching in March 2022, reaching more than 200,000 people and delivering 25,000 patient consultations. The app is the number one medical app in South Africa with a 4.8/5-star review on the Google Play store and a 4.9/5-star review on the Apple App Store. The customer appeal lies in the high quality of care, unparalleled convenience, and an accessible price of only R 185 ($9.50) per consultation. This is less than a third of what it costs to visit a family doctor in most South African suburbs.

Kena Health’s differentiated position 

The high standard of healthcare is delivered through a full-stack solution where clinical teams and seamless technology work together to deliver quality care for patients.

The start-up directly employs a multidisciplinary team of clinicians, allowing it to tightly control the quality of the customer experience and foster teamwork centred around the need of the patient. This differs from other telemedicine players who have a marketplace model where any clinician can join and earn fees.

Leveraging Kena Health’s deep tech expertise has produced a seamless user experience. Customers can download, register and see a clinician in minutes. Prescriptions, sick notes, and referrals are sent directly to their smartphone. A sophisticated backend allows clinicians to collaborate with one another to serve the patient’s unique needs and deliver care that patients love.

“When we established NEXT176, we stated our bold ambition of creating disruptive and sustainable businesses that positively impact the lives of our customers and communities. We are delighted to work with Kena Health, to help us realise this in the healthcare sector. We are confident that with Kena Health we can drive inclusion and access to healthcare.” says Vuyo Mpako, Founder and Managing Director of NEXT176.

Funding growth and expansion

NEXT176 and Tofino Capitals seed extension investment, adds to Kena Health’s backing from Swedish-based health tech investor Cardo Health and a local family office. NEXT176 is a subsidiary of Old Mutual,  one of the most established financial services institutions in Africa with over 12 million customers. US-based investor Tofino Capital gives the start-up inroads and insights into the US markets, one of the most developed healthcare markets globally. Cardo Health brings scale and experience in the health tech vertical, having grown start-ups in Central and South America.  A formidable set of seed investors, teeing up Kena Health for further growth.

Kena Health’s current seed extension funding, and subsequent Series A funding, will be used to expand the integration of Kena into the broader healthcare ecosystem. Integration into the full healthcare system allows for even better patient care over time. Kena Health will also extend its go-to-market distribution strategy, beyond just direct-to-consumer to include business-to-business segments such as employers. That will allow employers to offer more affordable and pragmatic primary care for their employees. It will also partner with players in retail, financial services, and super apps to expand its footprint.

“Right now Kena Health plays an important role as an entry point into the larger healthcare system. The vision is to see Kena Health offering a broader set of clinical services, and integrating into a network of healthcare providers to expand coverage of quality healthcare whilst lowering the overall cost of care to millions of people” says Kornik.

He adds that his team is in the final negotiations to conclude its seed extension funding and expects to be offering investors Series A opportunities within the coming year.