LeapFrog Investments has exited its stake from Goodlife Pharmacy, East Africa’s largest retail pharmacy platform, to CFAO Healthcare, a leading distributor of pharmaceutical and medical products in Africa.

This full exit follows LeapFrog’s earlier sale of a minority stake in Goodlife to CFAO Healthcare in 2022.

That transaction marked the beginning of a strategic partnership between the two firms, with CFAO now acquiring the remainder of LeapFrog’s shareholding to take full ownership.

With its investment in Goodlife in 2017, LeapFrog helped accelerate a modern pharmacy retail category that previously did not exist at scale in East Africa.

By emphasising traceable supply chains and scaling a trusted consumer-focused brand, the firm has built a category leader that now serves more than 2 million consumers annually.

Goodlife has evolved into East Africa’s leading health services provider offering quality pharmaceuticals, beauty and wellness products as well as a suite of diagnostics and primary care consultation services with the support of licensed partners.

The chain enables access to quality and affordable healthcare products and services to fast-growing communities across the region.

Today, the business operates an integrated omnichannel model with around 150 locations across Kenya and Uganda.

The exit marks a key moment for African healthcare, which has historically been underfunded and underpenetrated by private capital.

Goodlife’s growth demonstrates that private investments in African healthcare is not only viable but can also deliver strong financial returns alongside life-changing impact.

LeapFrog Partner and Global Head of Healthcare, Dr Biju Mohandas said: “This is a powerful demonstration of what’s possible in African healthcare with the right capital and the right partner. Together with a world-class management team, we built Goodlife into a household name - trusted by millions for vital medicines and health services. With its more than 70-year history and rich legacy of operating in Africa, CFAO Healthcare, the healthcare subsidiary of the Toyota Group, is the ideal partner to carry this mission forward.”

LeapFrog’s hands-on operational support focused on transitioning Goodlife to an asset-light, profitable business model, with a keen focus on improving unit economics via targeted initiatives on product assortment, supply chain optimisation, store rollout and capital deployment.

Through its Talent Accelerator program, LeapFrog supported the recruitment of a skilled executive team and the implementation of best-in-class systems.

Work with LeapFrog’s CX program propelled the launch of Goodlife’s digital and deliveries business and its customer loyalty program, myGoodlifeClub. which has more than 500,000 members.

These initiatives enabled Goodlife to scale sustainably, build strong customer engagement, demonstrating resilience and clear market differentiation even through the COVID-19 pandemic and broader macroeconomic headwinds.

Jean-Marc Leccia, CFAO Healthcare CEO, said: “Goodlife has built a trusted brand and an extensive network of pharmacies across East Africa. Thanks to LeapFrog’s operational expertise and vision, the platform now stands as a benchmark for delivering affordable, high-quality care to emerging consumers. Goodlife has built a highly recognised brand and an extensive network of pharmacies that serve as genuine wellness hubs. Together, we will further enhance accessibility, service quality, and innovation within the pharmaceutical sector.”

Justin Melvin, CEO of Goodlife Pharmacy, said: “Goodlife Pharmacy has always been dedicated to enhancing health and wellness, and with the backing of LeapFrog Investments, we’ve achieved tremendous progress toward our mission. Partnering with CFAO Healthcare offers a unique opportunity to expand that mission, delivering greater impact and value for our customers and communities.”

CFAO Healthcare’s acquisition reflects Goodlife’s strong market position, operational sophistication, and long-term growth prospects. As part of Toyota Tsusho Corporation, CFAO brings extensive pan-African reach and resources that will help accelerate Goodlife’s next phase of growth.

The transaction has received all regulatory approvals.

Lead advisors to LeapFrog Investments included Nedbank (Financial) and Bowman’s (Legal).