In Africa, local pharmacies serve as the unsung pillars of healthcare delivery. Taking Kenya as an example, these small, independently owned drugstores manage the majority of medicine distribution, supplying over two-thirds of primary healthcare needs and dispensing nearly 60% of pharmaceuticals across East Africa. Despite their vital contribution, most of these outlets operate offline and face significant funding challenges.
Zendawa, a startup headquartered in Nakuru with branches in Kiambu and Nairobi, envisions these micro-pharmacies as the cornerstone of Africa’s healthcare future.
Established in 2022, Zendawa’s 16-member team has created a flexible software platform that links thousands of pharmacies to digital supply chains, credit facilities, and essential management tools. Their mission is to digitize last-mile pharmacies-not by disrupting existing systems, but by enhancing them.
What does Zendawa’s modular platform entail?
At the heart of Zendawa’s strategy is improving last-mile medicine delivery, streamlining business operations, and facilitating access to credit. Their platform, accessible via web and soon through USSD, offers pharmacies three interconnected services.
The first is a telepharmacy marketplace, a B2B network connecting pharmacies with verified distributors to expedite restocking. This is paired with business management software that handles inventory tracking, payment processing, and financial reconciliation. Additionally, an integrated finance module provides credit scoring and working capital loans based on transactional data.
Unlike many health-tech solutions that impose rigid systems, Zendawa’s modular design allows pharmacies to adopt only the components they need, seamlessly integrating with their current workflows.
“Many pharmacies already use management software, which posed a challenge for adoption,” explains Will Chege, Zendawa’s CEO. “We addressed this by making our platform modular, so pharmacies can incorporate only the features they lack without abandoning their existing tools.”
This approach has accelerated Zendawa’s growth, with hundreds of pharmacies joining through referral channels, notably via the Pharmaceutical Society of Kenya.
Revenue streams and business model
Zendawa operates at the crossroads of SaaS, fintech, and marketplace dynamics. While their pharmacy management software is the most widely used product, it is offered free of charge. Instead, the company generates income primarily through commissions on orders processed via their marketplace, ensuring low barriers to entry and steady transactional revenue.
Currently, Zendawa does not provide loans directly but collaborates with financial institutions that use Zendawa’s data to assess creditworthiness. The startup earns a 1% fee on each successful loan repayment cycle, boasting a 98% repayment rate to date.
Looking ahead, Zendawa plans to enable pharmacies to accept card and mobile money payments in-store, earning small processing fees per transaction and diversifying their income.
For now, the company is funded by its founders and has not announced any fundraising plans.
Leveraging data to unlock credit
Central to Zendawa’s platform is its “data-to-credit” model. Every transaction, repayment, and sale recorded builds a comprehensive performance profile for each pharmacy. This data-driven approach allows lenders to offer unsecured working capital loans, opening financial access to pharmacies traditionally excluded from formal banking.
“In the long term, we aim to provide loans directly from our own capital, giving us control over interest rates,” Chege notes.
Extending reach beyond urban centers
Zendawa’s next growth phase targets rural areas. To serve pharmacies and health workers without smartphones, the company is developing a USSD version of its platform. The main hurdle is not infrastructure but changing user habits.
“Some communities are hesitant to adopt digital methods for obtaining medication,” Chege admits. “We are addressing this by collaborating with community health workers to build trust and promote our solution.”
The company’s logistics model relies on adaptable partnerships with delivery providers, deploying riders based on demand to efficiently serve low-density regions without incurring high fixed costs.
Integrating AI and safeguarding data
Zendawa’s upcoming innovation, Zental.AI, aims to automate routine pharmacy tasks such as inventory restocking, patient refill reminders, and daily record-keeping.
Employing computer vision, the system can interpret prescriptions and count stock, minimizing errors that slow operations. Its demand forecasting capabilities help pharmacies reduce waste from expired medications while maintaining optimal inventory levels.
Handling sensitive health information, Zendawa’s Wellness Check AI collects and analyzes biometric data for preventive care, adhering strictly to data protection laws like GDPR and Kenya’s Data Protection Act. The platform uses encryption, anonymization, and secures informed consent, with all diagnostic decisions overseen by healthcare professionals.
Zendawa’s unique position in a competitive market
Kenya’s health-tech ecosystem is bustling, with players like MYDAWA leading direct-to-consumer drug delivery and Maisha Meds focusing on digitizing small pharmacies. Zendawa differentiates itself through its modular, asset-light framework.
“Our modular design offers pharmacies a low barrier to entry and a sustainable growth path,” Chege explains. “We empower pharmacies to maintain their independence while enhancing service quality at a fraction of the cost.”
This scalable model avoids the costly asset-heavy approaches competitors would need to adopt, enabling Zendawa to grow steadily without massive upfront investments.
Rather than consolidating pharmacies under a single brand, Zendawa supports their autonomy by embedding technology into daily operations. Pharmacies that digitize with Zendawa typically see a 30% increase in sales and gain access to credit for the first time.
Building foundational infrastructure for African pharmacies
Zendawa’s vision extends beyond software or fintech front-ends; it aims to establish the essential infrastructure that underpins pharmacy operations. This platform can integrate with any retail setup, quietly facilitating the flow of medicines, finances, and data across Africa’s fragmented healthcare landscape.
“Think of us as the Shopify for licensed pharmaceutical products,” Chege says. “Our goal is to equip every local pharmacy with the tools to operate online-efficiently, compliantly, and independently.”
This vision aligns with a broader trend in Africa’s digital health sector, shifting focus from flashy consumer apps to foundational systems that standardize data, payments, and regulatory compliance.