PG Impact Investments, a global impact investment firm, has made a minority equity investment in East Africa’s leading pharmacy chain GoodLife Pharmacy on behalf of its clients. In partnership with Leapfrog Investments and other co-investors, PG Impact Investments will support the growth strategy of GoodLife Pharmacy with a target to provide quality access to more than 1 million emerging consumers by 2021.
GoodLife provides trusted pharmaceuticals to 600,000 customers from convenient locations across East Africa. Founded in Nairobi in 2014, the company has quickly grown to reach 19 stores under CEO Tony McNally, and plans to expand its footprint to 100+ stores over the next five years.
The estimated value of Kenya’s retail pharma market is USD 725 million. Growing at 12% CAGR, it is expected to reach USD 1.3 billion by 2020. Nevertheless, the availability of affordable and non-counterfeit drugs for consumers remains a challenge. The World Health Organization estimates that some 30% of all pharmaceuticals in Sub Saharan Africa are counterfeit. GoodLife is among the companies and stakeholders that are working at the heart of these issues. The Pharmaceuticals Society of Kenya’s Green Cross Audit recently endorsed GoodLife for best pharmacy practice in the country, a result of their demonstration of excellence in pharmacy practice and governance standards.
Josh Ruxin, co-founder of GoodLife Pharmacies, said, “This investment will benefit the people that really matter – our customers. The partnership will help us deliver high quality products to millions of people at affordable prices. Through GoodLife, we intend to transform delivery of pharmaceutical products in East Africa.”
Urs Baumann, CEO and co-founder of PG Impact Investments, comments: “GoodLife has introduced an innovative business model in East Africa, which combines pharmacies with in-store diagnostic centres and access to clinicians through telemedicine. In a market where the availability of affordable and non-counterfeit drugs remains a challenge, GoodLife is proving to be a strong player supported by a capable and experienced management team.”
This investment has been made in partnership with Leapfrog Investments, Ascension Investment Management and The Louis Family. IFC, an existing investor, will retain its investment in GoodLife. As part of this transaction, existing investor Catalyst will be exiting its GoodLife shareholding.