Investment Firm LeapFrog Divests from Goodlife Pharmacy Business
LeapFrog Investments, a global impact investor, has announced the sale of its remaining stake in Goodlife Pharmacy to CFAO Healthcare, marking the end of LeapFrog's involvement in the company. This strategic move signifies a new chapter for Goodlife Pharmacy as it continues to expand and improve healthcare access in Africa.
Founded in 2014 in Nairobi, Goodlife Pharmacy has grown significantly under LeapFrog's guidance. The investment, made in 2017, helped Goodlife Pharmacy scale from 19 stores to around 150 locations across fast-growing communities in Kenya and Uganda. This growth has enabled the company to reach over 2 million consumers annually.
LeapFrog's support extended beyond financial investment, with the firm providing operational support that included supply chain optimization, store rollout, capital deployment, recruitment of an executive team, launch of a digital and deliveries business, and a customer loyalty program. These efforts have been instrumental in helping Goodlife Pharmacy establish a reliable, traceable pharmaceutical supply chain and build a trusted, consumer-centric brand.
Goodlife Pharmacy has not only grown in size but also in its service offerings. Beyond pharmaceuticals, the company now offers beauty, wellness products, diagnostics, and primary care services, effectively improving access to quality and affordable healthcare in East Africa.
The partnership with CFAO Healthcare, a pan-African pharmaceutical distributor and the healthcare unit of the Toyota group, presents a unique opportunity for Goodlife Pharmacy to expand its mission, delivering greater impact and value for customers and communities.
The African healthcare market is projected to be worth as much as $259bn by 2030, making it the second-largest in the world after the US, according to a 2019 United Nations report. This growth presents a significant opportunity for companies like Goodlife Pharmacy to continue scaling and improving healthcare access across the continent.
Justin Melvin, CEO of Goodlife Pharmacy, expressed his gratitude for LeapFrog's support, stating that the company has made significant progress towards its mission of enhancing health and wellness. He also expressed excitement about the future, as the partnership with CFAO Healthcare opens up new opportunities for growth and expansion.
This exit is noteworthy as it represents the largest private equity-led retail pharmacy exit in Sub-Saharan Africa (excluding South Africa). It underscores LeapFrog's role in pioneering "Profit with Purpose" impact investing, a strategy that combines financial returns with social impact in African healthcare.
In a statement, LeapFrog acknowledged the significant impact their investment has had, catalysing the modern pharmacy retail sector in East Africa, scaling a trusted healthcare brand, and increasing access to essential medicines and services. They expressed confidence that CFAO Healthcare, with its extensive distribution network and resources, will continue to drive this impact forward.
As Goodlife Pharmacy embarks on this new chapter, it does so with a strong foundation and a clear mission: to continue enhancing health and wellness in East Africa and beyond.
- LeapFrog Investments, a global impact investor, has employed development finance in the energy transition sector by selling its remaining stake in Goodlife Pharmacy to CFAO Healthcare, signifying the end of LeapFrog's involvement.
- Goodlife Pharmacy, having scaled from 19 stores to around 150 locations thanks to LeapFrog's investments, now offers not only pharmaceuticals but also beauty, wellness products, diagnostics, and primary care services, improving health-and-wellness access in East Africa.
- The private equity-led retail pharmacy exit in Sub-Saharan Africa (excluding South Africa), marked by LeapFrog's sale of Goodlife Pharmacy, underscores the impact of LeapFrog's profit-with-purpose investing strategy in the African health sector.
- With its focus on business expansion, Goodlife Pharmacy's strategic partnership with CFAO Healthcare, a pan-African pharmaceutical distributor, allows for growth opportunities aligned with its mission of enhancing health and wellness in Africa.
- Science and technology are essential in the development of East Africa's real-estate sector, as demonstrated by Goodlife Pharmacy's digital and deliveries business and customer loyalty program, which contributed to building a trusted, consumer-centric brand.
