Dutch-African mobile health payments startup CarePay International has wrapped a Series A funding round of €40m ($45m).

The funding round was joined by Dutch private equity funds IFHA-II and impact investor ELMA Investments. The Dutch Ministry of Foreign Affairs invested via the PharmAccess Group.

CarePay International was founded in 2015. Furthermore, it intends to use the funds to expand platform to new markets such as Tanzania and Nigeria.

Currently, its mobile health payments platform is available only in Kenya.

The startup, which works in collaboration with M-PESA operator Safaricom, allows users to communicate and also transact through smart contracts.

CarePay International CEO Onno Schellekens said: “The mobile phone allows you to reach everyone at almost no extra cost, this creates unprecedented opportunities for health insurance schemes.”

Tom McPartland, a Board member of ELMA Investments, said: “Universal Health Coverage in Africa will only be possible if governments and their citizens can provide and access health services from both the public and private sectors through seamless and efficient mechanisms, CarePay brings that ambitious vision within the realm of possibility.”

IFHA-II managing partner Max Coppoolse said: “The current health insurance model excludes huge parts of the African population as the administrative costs are too high. There is not enough data and outpatient costs cannot be controlled.

“CarePay’s mobile technology addresses all these elements and in addition offers cross-sale opportunities and other significant growth prospects for insurers.”