The new partnership will promote the growth of 3elagi Tech, accelerate the startup’s digital transformation, and strengthen its digital footprint while providing people access to medication without having to leave their households.
The majority of the capital includes Egyptian Pound 25-million ($1.6-million) which will contribute to financing future expansions.
The 25% stake that remains will continue to be managed by the founders.
Ibnsina Pharma was established in 2001 by Omar Abdel Gawad and Mahmoud Abdel Gawad. Ibnsina Pharma is an Eygpt pharmaceutical distribution company that issues a portfolio of pharmaceutical products from more than 350 Egyptian and multinational companies.
Products and services are provided to over 42 000 customers that include hospitals, wholesalers, pharmacies, and retail outlets. The company has roughly 680 vehicles that transport high-quality pharmaceutical goods and services to customers across 62 nationwide sites.
The 75% stake acquired is the second step in their digital transformation plan after launching an app in July that connects pharmacies with patients.
In an official press release, Mohsen Mahgoub, Ibnsina Pharma’s Chairman, commented on the global pandemic driving digital transformation and easier access to medication for individuals.
“This acquisition came in line with the growing importance of the eCommerce during the COVID-19 pandemic and the social distancing measures. The lockdown that was implemented in most of the world, highlighted the need to give patients access to have their medications without having to leave their homes.
This strategic move supports the state efforts to apply Track & Trace system in order to prevent counterfeit of medical drugs and illegal drugs from filtering into the system by following the drugs at every step of the supply chain.
In addition, it supports the national agenda “Egypt Vision 2030” which reflects the state’s long-term strategic plan to achieve sustainable development through knowledge-based economic growth and digital transformation.
Investment in the digital healthcare sector is a first for Ibnsina Pharma. The distribution company aims to regulate operations that will benefit stakeholders.
Omar Abdel Gawad, Co-CEO of Ibnsina Pharma, commented on building the pharmaceutical sector through digitisation and how the company has surpassed its competitors in the field.
“As part of our strategic objectives directed by the Board of Directors, we pursue value-adding acquisitions adjacent to our core operations in order to strengthen our business. This agreement is a proof point of implementing our investment strategy in the healthcare sector. It is also in line with our objective to strengthen our competitive edge in the area of digitalization to create meaningful innovations for the entire pharma sector” said Omar Abdel Gawad Ibnsina Pharma’s Co-CEO.
3elagi Tech’s application
3elagi Tech launched an application in July that allows clients to connect with pharmacies to purchase medication online. The app ensures a user-friendly experience for customers and provides a clear layout to easily navigate.
Pharmacists can order 24/7 and receive information around product availability and receiving time. Balances and invoices can also be monitored on the app.
The increase in the capital gives 3elagi Tech the opportunity to increase the number of users and registered pharmaceutical companies using their app. The objective is to build the app into a platform for online orders.
Mahmoud Abdel Gawad, Co-CEO of Ibnsina Pharma, explains how the application works and how it doesn’t favour specific pharmaceutical companies.
“The application is a new service that links the pharmacies with clients willing to order medicines and cosmetics online. The client will have the option to choose which pharmacy he wants to order from, consequently, the order and the invoice will be issued from the pharmacy to be delivered to the client at the official price. This means that the application doesn’t compete with pharmacies or favor specific pharmacies, on the contrary, it will boost orders to pharmacies and will increase the competitive advantage of small and medium-size pharmacies all over Egypt. We aim the have all the pharmacies in Egypt on the application whether the pharmacy is ibnsina pharma’s client or no”
Benefits of the partnership
Ibnsina Pharma has been operating for almost 20 years, serving more than 40k pharmacies across Egypt. The partnership between Ibnsina pharma and 3elagi Tech will drive distribution in digital services.
Mostafa Hamouda, 3elagi Tech Managing Director, celebrates the partnership with Ibnsina Pharma.
“We are excited to partner with ibnsina pharma, the fastest growing pharma distributor in Egypt with its high efficiency and strong distribution capabilities. We are confident that choosing the right partner whose values and strategic vision are aligned with our own will transform the application into a full-fledged-healthcare platform.”
Ibnsina Pharma offers a range of services to suppliers. The app operates across 62 sites nationwide, allowing access to safe and high-quality pharmaceutical products.
Youssef ElSammaa, CEO of Falak Startups, explained their excitement to be apart of accelerating tech startups in the marketplace.
“As shareholders, we are excited with the deal which is compatible with Falak Startups‘ mission to empower talented and ambitious early-stage tech startup founders and help them thrive in the region’s rapidly changing entrepreneurship landscape powered by the Egyptian Ministry of International Cooperation and it’s venture capital arm, Egypt Ventures.”
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