Axmed, a B2B marketplace bridging the gap that exists in the drug supply chain has secured $2 million from Founderful. The startup has been positioned to combat the challenges of accessing quality, affordable and essential medicines faced by lower and middle-income countries and with this investment, Axmed aims to expand its offerings across more underserved regions.

Axmed's strategy is designed to eliminate the traditional, multi-tier pharmaceutical supply chains, notorious for inefficiencies and the proliferation of counterfeit products. By facilitating direct purchases from manufacturers, the platform enables healthcare providers in target markets such as Kenya, Nigeria, Ethiopia, Tanzania, and Rwanda to obtain medicines more affordably and reliably. Initially, Axmed will engage with faith-based organizations, NGOs, government care providers, and procurement agencies.

Based in Switzerland, Axmed is refining its platform with partners and plans a full launch later in the year. This move follows a $5 million grant from the Bill & Melinda Gates Foundation, which supported efforts to enhance maternal and child healthcare in critical regions.

Axmed co-founders; (L-R) Sofia Radley-Searle, Emmanuel Akpakwu, Felix Ohnmacht

CEO Emmanuel Akpakwu, who co-founded Axmed with Felix Ohnmacht and Sofia Radley-Searle, explained that the aggregation model utilized by the platform not only strengthens buyer power but also makes these markets more appealing to quality manufacturers. He highlighted that such procurement models were effective during emergencies, like the COVID-19 pandemic, but often did not transition into long-term solutions. Axmed aims to change that by establishing a sustainable operation that empowers buyers and patients and attracts reputable manufacturers to these markets efficiently.

READ ALSO - Jumia Reports Growth in Sales and Orders for Q1 2024

Moreover, the platform aims to provide critical market visibility, helping local, regional, and global manufacturers understand market sizes and engage more effectively.

Akpakwu, who previously served as the Chief Commercial Officer for Novartis in sub-Saharan Africa, conceived Axmed after witnessing firsthand the barriers that prevent manufacturers from expanding into new markets. His experiences underscore the significant potential of a platform that can aggregate orders and create a conducive environment for manufacturers.

Axmed joins other platforms like Africa Medicines Supply Platform and Xs2Meds, as well as healthtech companies such as Drugstoc and Remedial Health, in the movement towards digitizing pharmaceutical supply chains and addressing the sourcing and distribution challenges faced by pharmacies and healthcare institutions.