Situation

A significant gap exists in Kenyan mass-market healthcare services, with very few providers that offer affordable, high-quality, accessible healthcare. This is especially true for outpatient services that can appropriately diagnose and treat or refer.

Over the past several years, the Kenyan mass-market has proven its willingness to pay for appropriately priced, high-quality solutions.

A highly experienced doctor and hospital administrator in Kenya, wanted to develop a clinic network to bridge this gap. But he needed a business model and operational plan that would allow him to execute a low margin, high volume business with substantial upfront capital investment.


Our Approach

  1. Conducted detailed research across Kenya to prove demand among low-income consumers as well as their willingness to pay
  2. Developed business model including clinic service offerings, pricing plans, value proposition, path to scale.
  3. Created operational model including clinic layout, staffing plan and compensation, detailed plan for first 3 clinics by location
  4. Created financial model to quantify break-even, investment required, test scenarios, and prepare for a capital raise
  5. Approached investors & managed capital raise contacting dozens of investors and negotiating terms for 2 separate capital rounds
  6. Managed challenges during launch helping create systems & processes, develop partnerships with suppliers, and shift strategy real-time based on results from first clinic
Open-Capital-Case-Studies-Healthcare-Clinics

Outcome

Over more than 18 months, we designed & helped implement a unique business model that invested in a new level of quality for low-income consumers, including services not offered by competitors (e.g. x-ray, ultrasound, postnatal, antenatal).

We supported a full capital raise, securing more than $800k in early-stage investments from international investors.

Using this capital, the business has now built 3 clinics, serving more than 70,000 low-income patients. It plans to raise more capital soon, expanding widely to serve millions.