🍔 Quick Bite: Africa’s healthtech sector is having a reality check. From Ilara Health’s layoffs in Kenya to Medsaf’s shutdown in Nigeria and 54gene’s collapse, startups that once rode the pandemic-era hype are now struggling with cash flow issues, cautious investors, and reduced donor support.
🧠 The Breakdown
Africa’s healthtech story has never been short of promise. The continent carries some of the world’s lowest doctor-to-patient ratios, sometimes as stark as one doctor for every 5,000 people. The potential for technology to close these gaps drew investor interest, especially during the COVID-19 pandemic, when digital health solutions seemed indispensable.
Yet, five years later, African healthtech is in a moment of reckoning. Most recently, Ilara Health restructured and laid off staff despite closing a $4.2 million round last year. YC-backed Reliance Health reportedly laid off more than 100 employees earlier this year as it sought to break even. Nigeria’s Medsaf shut down after struggling with fundraising and unpaid invoices. And 54gene, which raised roughly $45 million amid the pandemic boom, began winding down in 2023 after revenue collapsed.
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