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Riyadh and UAE-based E-commerce enabler, Opontia has acquired UAE-based direct-to-consumer (D2C) medical equipment and therapeutic product provider, Novimed. This new acquisition, set up in record time of under a month, comes shortly after Opontia raised $20M in a seed funding round led by led by various venture capital firms including Dammam-based Raed Ventures, Berlin’s Global Founders Capital, London-based Kingsway Capital, and New York's Presight Capital alongside strategic angel investors in the region.
VC funding in Saudi Arabia has reached a half-yearly record in H1 2021, recording a stellar 65% YoY growth based on MAGNiTT’s latest H1 2021 Saudi Arabia Venture Capital Report in collaboration with Saudi Venture Capital Company(SVC). Even with a remarkable dip in the number of transactions closed by E-commerce startups, the sector still raised 19% of that capital.
Launched in 2017, Novimed introduced its first non-medicinal healthcare product: medical pillows and cushions for patients suffering from acid reflux. The Healthcare startup now offers different kinds of medical products to support patients and physicians during treatment plans, including medical braces, foot care products with plans to launch physiotherapy tools and equipment in the pipeline.
Novimed's products are currently sold on multiple e-commerce platforms, including Mumzworld, Noon, and Amazon. In 2020, Novimed sold 4,000 items at a value of AED600,000. The company’s co-founder Ahmed Sami who previously worked at Takeda pharmaceutical company identified a gap in the medical tool equipment market. “The idea was built around the fact that some patients need positioning or lifestyle modification to support their treatment plan. We have heard that from physicians and saw the market need for that,” Sami elaborated.
Launched in May 2021 by Manfred Meyer and Phillip Johnston, Opontia aims to help e-commerce startups scale their business and expand their operations into new markets across geographies. This new acquisition is set to enable Novimed to expand regionally as well as beyond the MENA region, enhance its visibility, and expand its product suite.
Opontia will invest in Novimed with the aim to improve its inventory operations and increase its marketing spend, believing in the impact this will have on further enhancing Novimed’s product placement. Opontia Cofounder Philip Johnston concluded "Novimed has a very solid and very strong brand identity of its own and is created as a homegrown, local brand that has very strong reviews and customer base. People love the product. It has some defensibility and the potential to grow that we look for."
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