Bangladeshi healthtech startup Arogga secures $1.3m from US investors
With support from Silicon Valley funds, Arogga plans to expand its tech and logistics to improve access to genuine medicine across Bangladesh
Elena Whitmore 
Bangladesh-based healthtech startup Arogga has raised $1.3 million in seed funding, led by Silicon Valley venture capital firm Hyper, along with participation from Ratio Ventures, Sketchnote Partners, SRB Ventures, Julian Shapiro (CEO of Demand Curve), IDLC VC Fund, and several other US-based investors. The latest investment brings Arogga’s total funding to $1.6 million, which the company will use to scale operations, improve logistics, and invest in technology to support its mission of delivering authentic medicine directly to consumers.
Focus on tech infrastructure and nationwide expansion
Speaking about the company’s future plans, Yawar Mehboob, Co-founder and CFO of Arogga, stated that the funding will support infrastructure development and nationwide expansion. According to Rosina Mazumder, Co-founder and CEO, the company is committed to addressing the critical issue of counterfeit drugs in Bangladesh, aiming to provide affordable and genuine medicine conveniently to the public.
A fragmented market with major challenges
Bangladesh’s pharmaceutical sector, estimated to be worth at least $3.5 billion, is expected to grow to $6 billion by 2025. However, the market remains fragmented, with supply chain inefficiencies and high distribution costs. One of the major concerns, as highlighted by Arogga, is that over 20% of medicines available in local pharmacies are counterfeit. This widespread issue makes access to verified medicine a pressing healthcare challenge.
Strong growth since launch in 2020
Founded in 2020 by Fahad Hossain, Rosina Mazumder, Shamim Hasan, and Yawar Mehboob, Arogga offers a digital platform that allows users to upload prescriptions and receive medications via home delivery. The company has seen steady growth, recording 30% month-on-month increases and a 24-fold rise in gross merchandise value within a year. It has delivered more than 7 million medicines across the country so far, maintaining authenticity by sourcing directly from manufacturers and avoiding third-party intermediaries.
Hyper's first investment in the Bangladeshi market
Shahed Khan, Co-founder of Hyper, emphasized that Arogga is well-positioned to improve the pharmaceutical experience for patients in Bangladesh, adding that it is Hyper’s first investment in the country due to their confidence in the founding team. Fahad Hossain, Co-founder and COO, pointed out that traditional law enforcement alone cannot curb the circulation of fake drugs and that a restructured supply chain model is required.
Backed by global networks through Hyper program
Arogga was selected for the Hyper 2022 cohort, gaining access to a four-week founder program and networks including Andreessen Horowitz (a16z), Sequoia Capital, AngelList, and Product Hunt. Rosina Mazumder expressed enthusiasm about becoming the first Bangladeshi startup to join the Hyper program and receive backing from top-tier Silicon Valley investors.
Hyper is a new kind of venture firm and founder support platform, with leadership including Shahed Khan (formerly of Loom), Josh Buckley (ex-CEO of Product Hunt), and Malika Cantor (formerly at Sequoia and Google).
Arogga aims to become a major player in South Asia’s growing healthtech landscape by addressing longstanding challenges in the pharmaceutical distribution system.
