Fight against counterfeit medicines in Bangladesh with Arogga

Bangladesh is emerging from political turmoil with renewed hope for a better future. Rosina Mazumder’s Arogga, a technology-driven online pharmacysymbolizes this progress. Arogga tackles the nation’s healthcare challenges, particularly the prevalence of counterfeit medicines and the difficulty of accessing genuine medicines. Arogga also embodies the entrepreneurial spirit that drives the vision of ‘Bangladesh 2.0’.

Building Bangladesh 2.0: a vision for the future

The recent student uprising in Bangladesh was a momentous and unprecedented period for the country, profoundly affecting its social and political landscape. “What started as peaceful protests by students against an unfair quota system quickly escalated into violent demonstrations, leading to tragic loss of life and a nationwide lockdown,” Mazumder explains.

A feeling of cautious hope permeates Bangladesh as it emerges from the storm of student-led protests. Nobel laureate and microfinance pioneer Dr. Muhammad Yunus heads the interim government. He faces the crucial challenge of paving the way for secure elections.

Despite obstacles, there is a sense of optimism and hope, especially under the leadership of Dr. Yunus. “It feels like we are building a Bangladesh 2.0, and I am incredibly excited to be part of this journey,” said Mazumder. The transition from turmoil to a hopeful future is marked by collective resilience and the determination to create positive change.

The nation stands at a crossroads: Will it finally achieve the stability it longs for, or is it merely on the cusp of a new chapter in its tumultuous political story? Mazumder is cautiously optimistic.

Barriers to Healthcare in Bangladesh: Counterfeit Medicines and Access Challenges

A British-born Bangladeshi, Mazumder has always strived to make a meaningful difference. Although she built a successful career in consultancy and financial services in London, Mazumder felt unfulfilled. Her deep connection to Bangladesh and her extended family’s experiences with the country’s healthcare system inspired her to make an impact in the healthcare sector.

Despite Bangladesh’s rapid economic growth and technological advancements, the country’s healthcare system continues to face significant challenges. One of the most pressing problems is the widespread availability of counterfeit drugs, which account for 20% to 30% of drugs in circulation. Patients often have to visit multiple pharmacies to find the medications they need; a process that is time-consuming and especially stressful for people who are not feeling well. These conditions make obtaining the right treatment both challenging and dangerous.

Arogga addresses these critical issues head-on by offering authentic products at competitive prices and with fast delivery. The country is on the rise digital economyespecially in fast-growing sectors such as e-commerce and fintech, according to the report, offers a favorable environment for innovation The trillion dollar prize by BCG. Increasing mobile internet usage and rising consumer spending are creating opportunities for digital platforms such as Arogga’s online medicine and healthcare service.

The success of local startups like bKash underlines the strong demand for digital solutions that meet the needs of the underserved population. By leveraging technology and establishing a robust logistics network, Arogga can transform Bangladesh’s healthcare landscape, making quality healthcare products more accessible and affordable to a broader segment of the population.

“Working with Arogga, the leading online pharmacy in Bangladesh, has been an exceptional experience,” said Mahmudur Rahman Bhuiyan, director of field marketing operations at ACI Ltd. “Their commitment to making healthcare accessible and convenient aligns perfectly with our company mission. We are proud to partner with such a dynamic and innovative company that is transforming the health technology landscape in Bangladesh.”

Mazumder put together a dynamic and complementary team. With a strong background in finance and strategy, Mazumder leads the company’s vision as CEO. Its COO, Fahad Hossain, excels in operations, focusing on warehouse efficiency and improving the customer experience. The CTO, Shamim Hasan, is a technology expert who developed Arogga’s app. Yawar Mehboob, the CFO, brings a wealth of investment banking experience, ensuring sound financial management and strategic growth.

This well-rounded team allows Mazumder to share the burden of leadership, allowing her to focus on moving the company forward while benefiting from the diverse skills and perspectives of her co-founders.

Female investors help a female founder overcome the VC winter chill

One of the main obstacles Mazumder faced was fundraising during what has become known as the “VC winter,” a period marked by extreme caution and reduced investment activity among venture capitalists. As an emerging market, Bangladesh was off the radar for many investors, making it even more difficult for Mazumder to secure financing. Many potential investors passed up the opportunity without engaging in discussions, citing that the geography was beyond their mandate.

Despite these challenges, Mazumder remained resilient and persistent. She held hundreds of meetings and went through extensive due diligence processes, ultimately raising one of the largest seed rounds in Bangladesh.

In 2023, Arogga closed $5.5 million. “It’s not every day that you get the opportunity to invest in a company that is redefining the way an entire country accesses healthcare, starting with the nation’s leading technology-enabled pharmacy,” says Cat Middleton , general partner at The Venture Collective and lead investor. “We at TVC are excited to partner with Rosina and her team as they work tirelessly to maintain their position as a trusted healthcare brand in a country expected to grow into a trillion-dollar economy within the next decade.”

TVC’s investment gave Arogga validation, and others followed. The main contributions came from female investors, highlighting the potential of female-founded businesses in emerging markets. “It’s wonderful to see female venture capital funds backing a female founder,” Mazumder emphasizes. Female investors at New York City-based TVC and Singapore-based SBK Tech Ventures and Epic Angels saw the potential.

Arogga is expanding its offering beyond drug delivery by introducing a range of healthcare and personal care products that meet the broader needs of its customers. Since its official launch in 2022, it has grown to 300 employees.

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