Digital Rx: Arogga fights counterfeit drugs in Bangladesh

Bangladesh is emerging from political turmoil with renewed hope for a brighter future. Rosina Mazumderi’s Arogga, a technology-driven online pharmacy, is a symbol of this evolution. Arogga deals with the country’s health problems, especially the proliferation of counterfeit drugs and the difficulty of genuine drugs. 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 an important and unprecedented period for the country that has profoundly affected its social and political landscape. “What started as peaceful student protests against the unfair quota system quickly escalated into violent protests that resulted in tragic loss of life and a nationwide shutdown,” explains Mazumder.

Emerging from the storm of student-led protests, there is cautious hope in Bangladesh. The interim government is headed by Nobel laureate and microcredit pioneer Dr. Muhammad Yunus. He faces a significant challenge to pave the way for secure elections.

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

The nation stands at a crossroads: will it finally achieve the stability it craves, or is it on the cusp of a new chapter in its tumultuous political saga? Mazumder is cautiously optimistic.

Health Barriers in Bangladesh: Counterfeit Medicines and Access Issues

British-Bangladeshi-born Mazumder has always strived to make a big difference. Although he had a successful career in consulting and financial services in London, Mazumder felt unsatisfied. 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 advances, the country’s healthcare system continues to face major challenges. One of the most pressing problems is the widespread availability of counterfeit medicines, which account for 20-30% of medicines in circulation. Patients often have to visit multiple pharmacies to find the medications they need, a process that is time-consuming and especially burdensome for people who are not feeling well. These conditions make getting the right treatment both difficult and dangerous.

Arogga directly addresses these critical issues by providing genuine products at competitive prices and fast delivery. The country’s growing digital economy, especially in fast-growing sectors such as e-commerce and fintech, creates a favorable environment for innovation, they announced A trillion dollar prize by BCG. Growing mobile internet usage and rising consumer spending are creating opportunities for digital platforms like Arogga’s online medical and healthcare service.

The success of local startups like bKash underscores the high demand for digital solutions that meet the needs of underserved populations. By leveraging technology and building a strong logistics network, Arogga can transform the healthcare landscape in Bangladesh by making quality healthcare products more accessible and affordable to a wider population.

“Partnering with Arogga, Bangladesh’s leading online pharmacy, has been an extraordinary experience,” says ACI Ltd. Field Marketing Director Mahmudur Rahman Bhuiyan. “Their commitment to making healthcare accessible and convenient aligns perfectly with our company’s mission. We are proud to partner with such a dynamic and innovative company that is changing the health technology landscape in Bangladesh.”

Mazumder assembled a dynamic and complementary team. With a strong finance and strategy background, Mazumder will lead the company’s vision as CEO. Its CEO, Fahad Hossain, stands out by focusing on warehouse efficiency and improving the customer experience. CTO Shamim Hasan is the tech expert who developed the Arogga app. CFO Yawar Mehboob brings a wealth of experience in investment banking, providing sound financial management and strategic growth.

This well-rounded team allows Mazumder to share the management burden, allowing him to focus on driving the company forward, benefiting from the diverse skills and perspectives of the co-founders.

Female investors help a female founder overcome the winter cold of venture capital

One of the most significant hurdles Mazumder faced was raising money during what has come to be known as the “VC winter,” a period characterized by extreme caution and reduced investment activity by venture capitalists. Bangladesh was overlooked by many investors as an emerging market, making it even more difficult for Mazumder to secure financing. Many potential investors passed up the opportunity without entering the conversation, citing geography outside their mandate.

Despite these challenges, Mazumder remained resilient and persistent. He held hundreds of meetings and navigated extensive due diligence processes, eventually landing one of the largest seed rounds in Bangladesh.

In 2023, Arogga closed at $5.5 million. “It’s not every day that you get an opportunity to invest in a company that is changing access to healthcare for an entire country, starting with the nation’s leading technology-driven pharmacy,” said Cat Middleton, general partner and lead investor at The Venture Collective. “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 that is expected to grow into a trillion dollar economy over the next decade.”

The TVC investment vindicated Arogga and others followed. Female investors made the biggest contribution, highlighting the potential of women-founded ventures in emerging markets. “It’s great to see female VCs supporting female founders,” Mazumder emphasized. Female investors from New York-based TVC and Singapore-based SBK Tech Ventures and Epic Angels saw the potential.

Arogga expands its offering beyond the supply of pharmaceuticals by launching a range of healthcare and personal care products to meet the broader needs of its customers. Since its official launch in 2022, it has grown to 300 employees.

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