Bangladeshi healthtech startup Arogga announced that it has completed its $5.5 million seed funding round, which included $4 million in new capital, in addition to the $1.5 million raised the previous year. The round is a meaningful milestone for the company given the challenging economic environment and is indicative of investor confidence in Arogga's mission and business model.
The company says the new funding will be used to expand its operations, reach more people, and make a positive impact on healthcare accessibility in Bangladesh. Arogga says its work enhances access to genuine, affordable medication in Bangladesh.
The 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). Notably, 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.
Commenting on the investment, Cat Middleton, Partner at TVC 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."
Rosina Mazumder, Co-founder and CEO of the startup, said “At Arogga we are in relentless pursuit of our vision, and our core objective for the forthcoming year is to develop into a holistic health super app that gives access to good healthcare for the people of Bangladesh, evolving beyond online pharmacy to encompass a spectrum of healthcare services like lab testing and doctor consultations. 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. Their syndicate is the largest global female-only investment collective investing in APAC, which is on a mission to democratize angel investing and make early-stage startup investments accessible to all.
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.”
The company says it has turned its Arogga App into a comprehensive health solutions platform designed to provide a wide range of genuine medicines and healthcare products. It offers a user-friendly search feature, allowing users to quickly find the products they need, with detailed information about each medicine.
The app also has a rewards and discounts system, allowing users to save up to 10% on purchases and earn Arogga cash for referring friends and family. The app also has a "Compare" function, allowing users to discover similar medicines from different companies and make easy product comparisons. A"Chat" button connects users with the customer service team.
Additionally, the "My Favorites" feature lets users create family profiles, help organize medicines and products, and tag specific family members for easy ordering. A separate "Prescription" button allows users to simply upload a picture of their prescription, and upload and confirm an order over a call.
A "Request Medicine" feature allows users to request specific items that are not available. The company says it aims to streamline and enhance the healthcare experience, making it more accessible and convenient for users.
Founded by Rosina Mazumder (CEO), Fahad Hossain (COO), Shamim Hasan (CTO), and Yawar Mehboob (CFO) in December 2020, Arogga has made significant strides in Bangladesh. The company says it currently has more than 600,000 users, and offers over 32,000 medicines and healthcare products from over 500+ manufacturers. The company says it is currently working to launch a home lab testing service in November.