Nigerian healthcare startup MDaaS Global, known for its network of diagnostic clinics across Nigeria, has opened its first clinic in Douala, Cameroon, marking a major step into Francophone Africa. This expansion aligns with MDaaS’s strategy to diversify operations and mitigate the financial impact of the Naira’s recent volatility while tapping into a growing demand for quality healthcare across West Africa.
“We’re scaling rapidly in Nigeria, with over 16,000 patient visits last month, but we realized we needed to diversify outside of Nigeria given current economic conditions,” said MDaaS CEO Oluwasoga Oni.
Building on Success in Nigeria
Founded in 2017, MDaaS has established a network of 16 diagnostic clinics across Nigeria, offering essential diagnostic services, including X-rays, ultrasounds, and lab tests. Additionally, the startup partners with 20 affiliate clinics through its proprietary tech platform, enabling it to reach 26 states. Notably, MDaaS operates profitably in Nigeria, with a unique model where customers pay upfront for services, ensuring a stable revenue stream.
“Our tech platform is our secret sauce,” Oni explained, noting that MDaaS manages everything from installation to service delivery, allowing for efficient, scalable operations.
Why Cameroon? Douala as the Gateway to Francophone Africa
MDaaS strategically selected Douala, the economic hub of Cameroon, for its entry into Francophone Africa. Douala’s bilingual environment and high demand for healthcare services make it a fitting choice. According to the World Health Organization, Douala’s healthcare system is concentrated in the city center, and private-sector players predominantly fill the gap in public services.
During a recent visit to Cameroon, the MDaaS team observed that existing diagnostic services could benefit from operational improvements. “Processes in Douala’s diagnostic centers are slow,” Oni noted, explaining that patients often have to return in person to collect test results. “These are issues we’ve already solved in Nigeria, so we’re excited to bring our streamlined processes to the market here.”
Nigerian Startups Look Abroad as Naira Weakens
MDaaS’s expansion comes at a time when the Naira has depreciated by 70% against the dollar, a result of recent economic reforms. With cross-border expansion encouraged by investors, many Nigerian startups are exploring growth in Francophone West Africa, where the Euro-pegged CFA franc provides greater currency stability. “This is a tough time for venture-funded companies,” Oni explained. “While we’re leading in Nigeria, the economic landscape prompted us to accelerate our Pan-African growth.”
To support its expansion, MDaaS raised $3 million in early 2024 from Nigerian venture capital firms Aruwa Capital and Ventures Platform. The startup has taken a careful approach to growth due to the capital-intensive nature of building diagnostic centers but now feels prepared to expand into other West African markets.
Revenue Mix and Growth Prospects
MDaaS generates 65% of its revenue from direct-to-consumer (B2C) services, with 35% coming from its B2B arm, Sentinel, a digital health platform focused on preventive care. This year, the startup saw record-breaking growth in Nigerian cities like Ibadan, Ilorin, and Akure, diagnosing over 360,000 patients, a third of whom were diagnosed in 2024 alone.
“Our motto, ‘building healthcare for Africa’s next billion,’ guides all of our decisions,” Oni shared. The Douala expansion is intended to be a learning experience, laying the foundation for further growth in Francophone Africa as MDaaS continues to fulfill its mission of accessible healthcare for underserved regions across the continent.