Generation Start-up: How Takestep is breaking stigmas of addiction and mental health

By Deena Kamel, Published in The National

Egyptian HealthTech start-up is seeking $1 million in new funding round to expand in the GCC

Mohamed Khashaba, co-founder of Egypt-based start-up Takestep, first came up with the idea for the healthcare technology platform after a family member's long and expensive journey of treatment to cure him from drug addiction.

After grappling with addiction for seven years – including several stays at drug rehabilitation centres, enduring five relapse episodes and spending millions of Egyptian pounds – the relative has recovered and is a co-founder of the business.

The journey exposed the gaps in the treatment process, inspiring Mr Khashaba to start Takestep in 2018 to help those living with addiction, as well as their families or guardians.

The entrepreneur observed a need for addiction treatment centres with stricter medical supervision, an expanded capacity to cater to the higher proportion of female addicts and cheaper services that are inclusive, he says.

“The biggest barrier to seeking treatment is social stigma,” Mr Khashaba says. “They worry about what people will think of them in the neighbourhood, in the workplace, in social circles … social stigma is a global phenomenon.”

The online platform aims to connect the stakeholders of the treatment process with patients and their guardians, to help them take control of their recovery and avoid potential relapses.

“I remember the first time we knew that a family member was facing an addiction issue, we didn’t know where to go,” Mr Khashaba says.

“We couldn’t ask neighbours, colleagues or friends. We were alone in this journey, looking here and there.

“He entered a treatment facility for one year, then relapsed within 15 days after getting out. We felt it was a scam, that there was something wrong with the system.”

In recent years, the abuse of drugs – in particular, prescription medication – has become a growing problem in the wider Middle East.

For example, tramadol, an opiate used to treat moderate to severe pain, is known to be widely abused by addicts.

The use of Captagon, a dangerous amphetamine, has spread across the Middle East.

The Captagon trade in the Middle East grew exponentially in 2021 to more than $5 billion, posing an increasing health and security risk to the region, a 2022 report by the New Lines Institute said.

The research painted an alarming picture of the impact that booming Captagon production is having on the region.

“The Captagon trade is a rapidly growing illicit economy in the Middle East and Mediterranean,” said the report, written by analysts Caroline Rose and Alexander Soderholm.

Takestep focuses on addiction and general psychiatry, offering services both to individual and corporate clients through web and mobile-based apps.

It offers round-the-clock support for addicts through individual consultations and long-term packages for recovery with licensed psychiatrists and psychologists specialising in different types of addictions, Mr Kashaba says.

The treatment plan also includes an “aftercare” phase to prevent relapses.

During the Covid-19 pandemic, the start-up further expanded its offering, with its experts addressing mental health conditions such as depression, anxiety, attention deficit hyperactivity disorder, emotional eating, phobias and obsessive compulsive disorder.

Takestep also focuses on outreaches to rural areas where access to addiction-treatment centres and mental health services is limited and patients are often underserved, Mr Kashaba says.

In these areas, where internet connections are sometimes patchy, Takestep says it pays for outbound calls made to patients and accepts payments through various methods, including through Egyptian digital payments company Fawry.

Takestep has also signed B2B partnerships with companies seeking to offer mental health services to their employees at a discounted rate.

Overall, sessions are priced anywhere from 70 Egyptian pounds ($2.30) to 200 pounds, depending on the type and duration of packages, he says.

Since its inception, Takestep has helped 32,000 patients across 11 countries in the region, Mr Kashaba says.

Currently, it's target customers are patients in rural areas, as well as the families of addicts – both relapsed or recovering – and women as they are often more open to seeking help than their male counterparts.

About 75 per cent of its patients are women as there are even fewer addiction treatment centres available to them due to social stigma, he says.

Takestep's business model is based on monetising the subscriptions of companies and individual patients.

Earning an annual revenue of about $50,000, the start-up is “making good money because there is a big gap in the market” as the number of patients exceeds the capacity of addiction treatment centres, Mr Kashaba says.

Patients and their families are also frustrated by frequent relapses following treatment and “want to try a new way and discover other ways of healing”, he says.

Demand for Takestep's services has grown from the highs recorded during the Covid-19 pandemic as tough economic conditions have led to an increase in mental health conditions such as depression, says Mr Kashaba.

Revenue is growing by 37 per cent and the number of active users is up 26 per cent on a monthly basis, he says.

Takestep's experts hold a minimum of master's degrees in their fields and are licensed by Egyptian health authorities to work in the country, according to the co-founder.

The platform also follows medical standards and regulations set by one of its co-founders who has more than 25 years of experience in the field of addiction treatment and has held various government positions in this medical area, Mr Kashaba says.

Looking ahead, Takestep intends to expand its operations in Egypt and enter other markets in the Gulf.

The start-up plans to raise $1 million in a new funding round and is currently in talks with venture capital firms focused on health technology, Mr Kashaba says.

It will use the funds to expand into the GCC and open its first in-person addiction treatment centre in Egypt.

The planned centre will be in a rural area and will operate a mixed model of in-person treatment for 28 days, followed by online “after care” in which patients can stay in touch with experts who supervised their recovery, Mr Kashaba says.

The start-up has raised about $500,000 from the founders and $180,000 from angel investors.

Venture capital funding in Egypt rose by 3.2 per cent annually in 2022 to $517 million, according to start-up data platform Magnitt. However, the number of deals fell by 3 per cent to 160 last year, from 165 in 2021.

Mr Kashaba called for more venture capital funding for HealthTech start-ups.

“Social stigma is our main problem, we need to raise awareness massively,” he says.

“There is also a need for better regulation of the online mental health start-ups sector.”

Learn more about Takestep: https://www.linkedin.com/company/takestep/