More than 1 million patients to benefit from CAF's investment in Social Diabetes healthtech
CAF, Development Bank of Latin America, together with Mexico's ALLVP Fund, made an equity investment in the startup Social Diabetes, which has a comprehensive digital therapy platform for the digitisation of diabetes management. Thanks to self-monitoring tools, telemedicine and medical device connectivity (IoT), it enables remote patient monitoring, real-time data management, and analysis of user behaviour and evolution.
Diabetes is one of the greatest health challenges of the 21st century (415 million people live with this condition, which will grow to 642 million by 2040), and one of the main global health burdens (12%), according to figures from the Pan American Health Organization (PAHO). This growing demand threatens the sustainability of health systems, which is further undermined by persistent shortages of endocrine and primary care staff (especially in developing countries).
The objective of the investment is to support the company in addressing the extraordinary needs of the healthcare sector in the wake of the Covid-19 pandemic by expanding its dissemination and marketing capabilities to strengthen its operations in Mexico and its expansion plans to other Latin American countries. One of the advantages of this solution is that it allows the patient to be in contact with a healthcare professional remotely, thus avoiding the need to travel to a healthcare centre and reducing the chances of contracting Covid-19 in this high-risk group.
"For CAF, the investment is especially relevant because of the impact and scalability that the digital health solutions provided by Social Diabetes can have on the care of the diabetic population in our countries in the face of the challenges posed by the Covid-19 pandemic," said Jorge Velarde, CAF's Director of Funds and Impact Investments.
The startup Social Diabetes, based in Barcelona, London and Mexico City, leader in the Hispanic market for digital solutions and one of the most prestigious global platforms for diabetes management, will deploy, thanks to the investment received, a combined strategy of alliances with the public and private sector to improve the quality of life of more than 1 million patients over the next two years.
"For us, CAF's investment means that we feel we are in the best company to face the challenges of the coming years. In the region, healthcare spending on diabetes is estimated to be between $45 million and $77 million and is expected to increase to $130 million by 2040 (pre-Covid-19 pandemic projections). Diabetes and the full spectrum of metabolic syndrome is set to become an increasing public health priority. CAF's prestige and leadership in Latin American governments and institutions will help us to channel our vocation for the digital transformation of healthcare systems at a key moment in our history, both as a company and as a society," said María Jesús Salido, CEO of Social Diabetes.
The company will also continue to expand its capabilities by incorporating artificial intelligence algorithms, an ever-expanding list of connected devices and fostering mutual exchange and support through support networks and patient communities.
"We are facing an unprecedented global crisis in healthcare, and we need to implement and support scaling solutions like Social Diabetes. We are convinced that the incorporation of CAF as partners will be instrumental for regional growth, and continue to support the +40 million people in the region living with diabetes," says Antonia Rojas, ALLVP partner.