(Ecofin Agency) - Nigerian healthtech startup Reliance Health announced yesterday it has successfully raised $40 million in a Series B round led by the U.S. PE firm General Atlantic. The deal is the largest of its kind in the African healthtech industry and marks General Atlantic’s first investment on the continent.

“General Atlantic is thrilled to announce our first technology investment in Africa in Reliance Health, backing a team focused on improving healthcare quality for millions of patients in Nigeria and abroad […] We look forward to sharing our experience as a leading global growth equity investor in support of Reliance Health's exciting and important mission,” Chris Caulkin, MD of General Atlantic, said.

Before this new round, Reliance Health had secured a $6 million Series A financing in 2020. The deal was led by technology investor Partech Partners, which also made a follow-on investment in the recent fundraising. Picus Capital, a former Reliance Health investor, also provided new funding, alongside new investors.

The new operation brings to more than $48 million the total amount raised to date by the Nigerian firm. Co-founded by Femi Kuti, Opeyemi Olumekun, and Matthew Mayaki, Reliance Health says it will use the money to expand across its core market and enter new ones, upskill its staff and strengthen its product offering.

In its fifth annual African Technology Startup Report, released on February 3, Partech Partners reported that healthtech companies were the 6th most popular sector for investment on the continent in 2021; 66 deals were recorded in the sector over the period with Nigeria leading the way. The country raised $1.8 billion in equity funding in 2021, representing 34% of all equity funding in Africa over the period.

Chamberline Moko