Zoscales Partners has secured a follow-on investment into Pioneer Diagnostics Center (PDC), a diagnostic imaging service provider in Ethiopia, buying a controlling stake in the company. Zoscales originally backed PDC in May 2020 as their fifth portfolio company in their maiden fund.

With this investment, Zoscales will inject additional capital to help PDC expand its presence in Ethiopia by scaling up beyond Addis Ababa. PDC is the largest private sector healthcare diagnostics service provider in Ethiopia, offering imaging services including MRI, CT, and Ultrasound, among others. The company, which was established in 2006, pioneered the first diagnostic imaging business providing MRI services in Ethiopia.

“PDC’s performance during the pandemic has been quite robust, affirming our thesis that healthcare investments in East Africa are often resilient to significant shocks”, says Fredd Kambo, the Principal who led the deal for Zoscales. He went on to add “We are excited to re-commit to the company’s ambitious and high performing founder, Brook Fekadu. This follow-on investment will enable PDC to scale beyond Addis and will further enable the company to offer more specialised services, thereby catalysing the provision of high quality, affordable care in Ethiopia.”

According to Mr Kambo, the investment in PDC is a key step in building a regional network of healthcare assets, and this is just the beginning. The East African private equity firm is currently in advanced discussions to invest in other companies in Ethiopia and Kenya.