Arogga, an accessible healthcare-focused Bangladeshis startup raises USD 5.5 million seed 

Bangladeshi health-tech startup Arogga has completed its seed funding round to enhance access to genuine, affordable medication in Bangladesh. Using technology to digitise the pharmaceutical supply chain, Arogga aims to improve healthcare in the country significantly. The successful funding round will enable them to expand their operations and positively impact healthcare accessibility in Bangladesh.

The successful completion of a $5.5m seed round in a challenging economic environment is a positive sign of investor confidence in Arogga's mission and business model. With this funding, the startup is set to scale up its operations and reach more people in Bangladesh, substantially impacting public health.

The startup successfully secured USD 4 million in new capital, building on the USD 1.5 million raised the previous year. This funding 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 from the US, Iterative from Singapore, Stella Maris Partners from Mexico, as well as returning investors Ratios Ventures from UK, Sketchnote Partners from Spain, and Epic Angels from 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 investors and exited unicorn founder Alex Rittweger. This substantial funding should further support the startup's growth and development.

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 become the country's go-to, comprehensive healthcare platform.

Founded by Rosina Mazumder, Fahad Hossain, Shamim Hasan, and Yawar Mehboob in December 2020, Arogga plans to use the new funding to deepen its operations in Bangladesh. 

(From left to right) Co-Founding Team: Shamim Hasan CTO, Rosina Mazumder CEO, Fahad Hossain COO and Yawar Mehboob CFO of Arogga 

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, in-house logistics and brilliant customer care. The priority remains increasing penetration in Dhaka's capital and 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, an interesting participant in this funding round, made their initial investment in Arogga in 2021, marking their first-ever portfolio investment. They are the largest female-only investment collective in the APAC region, with a mission to democratise angel investing and empower women through education and community support. They provide capital, mentoring, and a global network to early-stage, female-led startups in APAC.

Maaike Doyer, one of the founders of Epic Angels, said, "From our very first interaction, Epic Angels, as the largest female-only investment collective in APAC, recognised 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."

Specifically for this round, over 37 women angels across 8 countries and 3 continents syndicated a follow-on investment in Arogga, being their largest investment to date.

About the app

The Arogga App is a comprehensive health solutions platform that provides you with a wide range of genuine medicines and healthcare products. It offers a user-friendly search feature that lets you quickly find the products they need, with detailed information about each medicine to help users make informed health decisions. One of the notable features of the Arogga App is its rewards and discounts system. One can save up to 10% on your purchases and also refer friends and family to earn Arogga cash, making it a cost-effective option for your healthcare needs.

Additionally, the app includes a "Compare" function, which lets users discover similar medicines from different companies and make easy product comparisons. If users have questions or need assistance, the "Chat" button lets them connect instantly with the customer service team.

The "My Favourites" feature lets users create family profiles, helping them organise their medicines and products and tag them for specific family members for easy ordering. One can also track your orders in real-time, from confirmation to delivery.

Ordering medicines with a prescription is made effortless with the "Prescription" button. Users can simply take a picture of their prescription and upload it, and a call will be made to confirm their order.

For medicines unavailable in their inventory, the "Request Medicine" feature allows users to request specific items, and they will receive notifications when they become available. If one prefers personal assistance, the "Call to Order" button puts her in direct contact with the Arogga team at 16778, ready to provide immediate support. The Arogga App aims to streamline and enhance users' healthcare experience, making it more accessible and convenient.

Arogga has made significant strides in Bangladesh, serving more than 600,000 users and achieving an eightfold increase in revenue since 2021. The platform offers over 32,000 medicines and healthcare products from over 500+ manufacturers. The key to their growth and scale has been an excellent supply chain framework backed by technology and operations. Additionally, Arogga is launching a home lab testing service in November, further enhancing convenience and accessibility to critical healthcare diagnostics. These developments highlight Arogga's commitment to improving healthcare access in the region.