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Viebeg Technologies

Procurement platform for medical supplies

Rwanda
Market: Logistics and warehouses, Artificial Intelligence
Stage of the project: Operating business

Date of last change: 07.01.2021
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Idea

Our AI-powered solution de-risks and optimizes medical supply by taking control of every aspect of the medical supply and demand network in hard to serve markets, allowing healthcare providers to procure automatically, transparently and efficiently via our our marketplace.

Affordability: We link the manufacturers directly to the end-users.

Accessibility: Our AI solutions ensure that the needed medical products are always available at the hospital.

De-risking: Our AI predicts supply shortages, epidemics and other shocks ahead of time, to prevent health crises.

Current Status

We have been operating for more than 2 years and have already acquired more than 320 hospitals, clinics and healthcare providers in Rwanda, Burundi and DRC, with monthly revenues of around 80,000 USD.

We have currently concluded 2 long-term supplies deals with European suppliers, who have provided us recently with medical products worth more than 400,000 USD which will be supplied through our platform.

Market

-Our early adopter customer is a doctor in the developing world (Africa as a starting point) who is struggling to find the right medical products fr om a reliable supplier for his/her hospital at a price that his/her healthcare institution can afford. The doctor prefers do procure all needed products easily online in a fast, transparent way.

-Uniquely, they exist within healthcare institutions in rural areas in the developing world wh ere the local infrastructure is weak, the medical supplies industry is filled with a myriad of unreliable small traders/ brokers of medical products (middlemen) and where the uncertainty of receiving the next supply is high.

-Viebeg Technologies started in two small African markets that are easy to penetrate, namely Rwanda and Burundi. We have identified 3000 healthcare providers (hospitals, clinics, doctors, medical practitioners) that have the attributes mentioned above.

We are providing our AI-powered inventory management and procurement software for FREE (more data and potential customers). We see that by using our software, healthcare providers are 90% more inclined to request medical products from us. On average, we sell medical products worth 3000 USD per year to each customer, resulting in a revenue of approximately 1,000,000 USD per year. Assuming that we have 600 customers (3000 USD *600 ) next year, 1200 (3000 USD *1200 ) in the second year and 2000 (3000 USD *2000 ) in the third year, we expect a revenue of 11,400,000 USD for the next 3 years (without additional investment).

TAM, SAM, SOM are elaborated in the pitch deck attached.

Problem or Opportunity

In developing countries, every minute five people die because of limited capacity of medical care, especially in Africa. Medical supply shortage due to weak infrastructure and poor inventory management / procurement are the biggest culprits.Healthcare providers have to source their medical supplies from various different suppliers, all in an analogue way by calling or meeting in person (which often means long journeys to the capital city) and asking if the needed products are currently available on the market.

Healthcare facilities often can't afford expensive inventory management software and procurement officers have to use spreadsheets (Excel) or even notebooks to monitor the inventory of their medical supplies and then often make procurement decisions based on their gut feelings. This inefficient untransparent way of procurement leads to both, excessive overstocking of certain medical supplies and at the same time dramatic stock-outs of essential medical products.

Solution (product or service)

Marketplace: Our platform connects pre-selected manufacturers/ suppliers, who store their products in our fulfillment centers, with healthcare providers.

Market access: Manufacturers/ suppliers sel ect in which of our markets they want to operate, grant us an exclusive distributorship of their products and we take care of every aspect of the supply chain.

Inventory Management: Our solution keeps track of the inventory of our healthcare providers, saves procurement costs and increases the product range by optimizing stock with our AI-powered reasoning. We collect data via our inventory management software and our online marketplace and through our automated solution, make sure that for each product, sufficient minimum quantities are always available at the hospital.

AI: Advanced pattern mining, pattern recognition and anomaly detection for early warning systems (outbreaks of disease or climate events). Reasoning systems for adaptive autonomous real time decisions.

Delivery: Manufacturers/ suppliers list their products on our platform and store their products in our fulfillment centers, fr om which the products are supplied to our customers. If the threshold for the minimum quantity available set by the healthcare provider is exceeded, VIEBEG automatically delivers new supply.

Competitors

Local competitors:
-Kipharma (focuses on pharmaceuticals; medical supplies market share: 35%)
-Crown Healthcare (Medical supplies market share: 20%)
-Africa Medical Suppliers (Focuses on tenders, medical supplies market share: 10%)

International (potential competitors):
-Henry Schein (not operating in our region)
-Johnson & Johnson (not operating in our region)
-Patterson companies (not operating in our region)
-Zipline (logistics (drones) and no stock optimisation)
-mPahrma (stock optimisation for pharmacies)

Advantages or differentiators

Unlike our local competition in East and Central Africa who just sells medical products in-store without offering inventory optimisation, we supply through our data-driven, digitalised platform that makes procurement efficient, transparent and automated.

Compared to other big international medical supply companies, such as Henry Schein, Johnson & Johnson or Patterson companies who also focus on Inventory Optimisation, VIEBEG does not use traditional delivery. These competitors don't deliver in challenging environments and don't supply minimum quantities that are made available at any time at the hospital through AI centric procurement and inventory optimisation. Moreover, they don't offer a marketplace that links international suppliers and manufacturers directly to the end user (healthcare providers).

On the other hand, Zipline and mPahrma, two VC-backed start-ups that also use non-traditional delivery and deliver in challenging environments (Africa), are not AI centric and also don't offer an online marketplace. Our solution is unique in that it links suppliers directly to healthcare providers and takes care of every single aspect of the medical supply chain, from transportation to storage, to payment, thereby de-risking supplying in challenging environments and opening market access to Africa.

Business model

VIEBEG provides an AI-powered inventory management and procurement platform to hospitals, clinics and healthcare providers, completely for free. Hospitals can enter and keep track of their stock via the platform. VIEBEG monitors their stock and based on all the data that we collect, our AI makes accurate predictions on which products and which quantities should be kept in stock at which period of time. Hospitals can set a minimum quantity for each medical product (Medical consumables & disposables, dental products, hospital furniture, general equipment, biomedical equipment) that they always want to be available at their hospital and VIEBEG automatically supplies the products, whenever the set threshold is surpassed.
Besides optimising inventory management and automating procurement, hospitals can also use our platform to manually procure medical products in a transparent way, selecting online from our huge product range with detailed descriptions and images and ordering them online. No need to call a myriad of suppliers and inquire prices, go to each office, bargain, transport the products individually to the hospital- with our solution, hospitals can procure efficiently and transparently from a ONE-STOP-SHOP.
Hospitals pay us directly for the products, with a down payment of 40-60% and three instalments, if the customer is creditworthy. Otherwise, full payment upfront in cash is required. Once the payment is received, after deducting our margin, we immediately transfer the funds to our suppliers, who have stocked the products at our fulfillment centers and taken the inventory risk.

Money will be spent on

Fulfillment centers: $ 300,000.
In addition to our existing fulfillment centers in Rwanda and Burundi, which we will expand, we will establish a fulfillment center in Kenya.

Technology $ 200,000.
We build a state-of-the-art procurement software, develop AI algorithms for predictions, invest in a Blockchain-based payment system and in IOT (sensors) to collect further data and prevent theft.

Marketing & Sales $ 200,000.
We will increase our sales teams in Rwanda, Kenya and Burundi, to promote our solution and to generate extensive recurring revenue.

Supplier network $ 300,000.
We will increase our existing supplier network and enter into more exclusive distributorship agreements with our suppliers.

Offer for investor

We have recently evaluated the company with our lead investor East Arican Investments and are currently raising 1,000,000 USD for 20% equity in our company.

Team or Management

Risks

-Financial: Receiving payments from hospitals on time; avoiding payment defaults and fraud
-Technical: Building an AI-powered solution that can precisely predict the usage of medical products in hard-to-serve markets, such as DR Congo, given the infrastructure problems, potential civil unrest, logistics and other factors that are difficult to predict. We want to use AI to predict the unpredictable and HI to predict the predictable.
-Cultural: Acceptance of using software to procure products online instead of having personal interactions with sales representatives. Creating an understanding of the importance of technology on improving efficiency will may be a challenge, but the increased adoption of software in Africa is giving us optimism.
-Legal: A license for a pharmaceutical wholesale company has to be obtained in every market that we want to operate in. So far, we have succeeded to do so in every market. As long as procedures are followed, the license will be obtained but the process usually takes 6-12 months.

Incubation/Acceleration programs accomplishment

BRIIA - The Intelligent Accelerator

Won the competition and other awards

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Photos

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Photo 2 - Procurement platform for medical supplies
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video