MDaaS Global, a Nigerian healthcare startup, has marked its entry into Francophone Africa by opening its first diagnostic clinic in Douala, Cameroon. This move, a first outside Nigeria, signals MDaaS’s broader expansion strategy to mitigate currency risk associated with the Naira and diversify its revenue streams.
Founded in 2017 by CEO Oluwasoga Oni, MDaaS specializes in affordable diagnostic healthcare, providing services like X-rays, ultrasounds, and fully automated lab tests across its 16 clinics in Nigeria. The startup has gained prominence for its unique approach to healthcare delivery, boasting a proprietary tech platform that enables seamless coordination and operational efficiency across its network. MDaaS currently operates in 26 Nigerian states and partners with over 20 affiliate clinics. As Oni explains, “We’re scaling rapidly in Nigeria—we did over 16,000 patient visits last month—but we realised that we needed to diversify from a single country considering everything going on in Nigeria.”
Why Cameroon? Douala Offers Strategic Gateway to Francophone Africa
MDaaS selected Douala, the economic capital of Cameroon, as its launchpad into Francophone Africa due to the city’s bilingual environment, which could ease operational transitions, and its high demand for accessible healthcare. The World Health Organization highlights that public healthcare services in Douala are largely concentrated in the city center and limited, creating a need for private healthcare providers like MDaaS. This situation mirrors what MDaaS has successfully tackled in Nigeria, making Douala an ideal market for the startup’s service-oriented healthcare model.
During an exploratory trip, MDaaS identified significant room for improvement in the customer experience at existing local diagnostic centers. Oni observed that, unlike in Nigeria where results are accessible online, patients in Douala often need to return physically to collect test results. “We noticed that processes happened much slower… These are issues we’ve already solved in Nigeria,” he said. This insight has further driven the startup’s confidence in applying its tech-driven model to Cameroon, where it aims to enhance the speed and quality of diagnostic services.
Pan-African Expansion Fueled by Economic Shifts
MDaaS’s cross-border expansion comes amid Nigeria’s challenging economic landscape, where recent policy reforms have led to a 70% depreciation of the Naira against the dollar. Like several Nigerian startups, MDaaS faces pressure to grow internationally to balance out the currency volatility and protect revenue. Venture capitalists have increasingly encouraged this shift, urging Nigerian startups to explore more stable economies, particularly in Francophone West Africa, where currency stability is often supported by the Euro.
“This is a tough time for venture-funded companies like ours,” said Oni. “Most people are not getting funded anymore. Right now, we’re dominating Nigeria, but even so, I think the current landscape accelerated our Pan-African expansion.”
MDaaS has received funding support from Nigerian investors, including Aruwa Capital and Ventures Platform, raising $3 million in March 2024. These funds have facilitated MDaaS’s operational intensification and supported its expansion strategy, enabling the startup to tackle the capital-intensive demands of healthcare infrastructure development.
Scaling B2C and B2B Healthcare with Sentinel Platform
While MDaaS’s revenue model is heavily B2C-focused (65% of total revenue), it also derives income from its Sentinel platform, a B2B digital health solution centered on preventive care. This platform allows MDaaS to diversify its income stream further by serving corporate clients seeking preventive healthcare solutions for their employees, enhancing the startup’s capacity to sustain profitability in the face of local economic fluctuations.
To date, MDaaS has served over 360,000 patients across Nigeria, with diagnostic visits growing significantly in Nigerian second-tier cities like Ibadan, Ilorin, and Akure. These regions have been instrumental in driving growth, with MDaaS reporting that over a third of its lifetime patient count came in 2024 alone. Oni stated, “It’s been our best year ever,” attributing much of the success to Nigerian cities that have typically lacked adequate diagnostic services.
Building “Healthcare for Africa’s Next Billion”
In the long run, MDaaS envisions its expansion into Douala as a springboard for establishing a stronger presence in West Africa and beyond. The startup’s ambitious motto, “Building healthcare for Africa’s next billion,” reflects its goal of scaling its tech-enabled healthcare model to reach underserved communities across the continent.
MDaaS’s entry into Francophone Africa is more than a business expansion; it’s a commitment to applying tested and scalable healthcare solutions to meet the needs of African populations. As MDaaS builds on its success in Cameroon, it looks forward to redefining healthcare standards across Africa and contributing to a healthier, more accessible future for all.
