South Africa-based healthtech startup Guidepost has secured an undisclosed amount of funding from AlphaCode, the fintech investment arm of Rand Merchant Investment. Senior investment executive at Rand Merchant Investment, Dominique Collett did reveal that the investment is more than $10 million.
According to local media reports, Guidepost, which also provides insurance digitally, will use the funds to develop its clinical technology and at the same time expand its business both domestically and globally.
With the investment, AlphaCode will acquire a 25.1 percent stake in the South African healthtech startup Guidepost.
Guidepost, through its platform, helps its customers in South Africa to better manage their diabetes risk with their highly personalised, data-driven diabetes management programme. Reportedly, the startup has achieved a 45 percent reduction in diabetes complications across more than 8,000 patients in the last six years.
Graham Rowe, chief executive officer and co-founder of Guidepost told the media, “We’re delighted to partner with AlphaCode and RMI as we grow our business. We already work with life insurers such as OUTsurance, innovative medical schemes such as CAMAF and pharmaceutical businesses such as Novo Nordisk. “
He added, “The heart of our business is a network of caring diabetes coaches empowered by our technology. We look forward to supporting our coaches and patients even better with RMI’s involvement.”
According to AlphaCode, people with diabetes are expensive for both medical and life insurance companies. This is where Guidepost could step in. It can help customers better manage their diabetes risk and support them to achieve better health and at the same time solve the business problem for the insurers.
Recently, Nigeria-based fintech company Interswitch acquired 60 percent in e-Clat Healthcare, a Nigeria-based healthtech startup, in a bid to improve the healthcare sector across Africa.