EvolutionX Debt Capital, a debt financing platform launched by Temasek Holdings and DBS Group, has made its first investment in API Holdings, which owns the PharmEasy online pharmacy in India.
The debt financing platform has also appointed Rahul Shah and Calvin Cheng to lead investments in India, China and Southeast Asia. Shah is a former director of Standard Chartered Bank, while Cheng was a former vice president of Citibank.
API Holdings says that they have over 6 million users who have transacted with the company in the past. They also have active contracts with 150,000 pharmacies and 1800 hospitals to provide healthcare.
EvolutionX is launching in 2021 and will help growth-stage tech companies scale faster and expand into new markets. The company said EvolutionX provides a cost-effective alternative to expensive bank debt, because the loans are backed by equity. The company said this helps startups stretch their cash swaths until they can raise money or successfully exit.
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“This [initial investment] is part of a planned sequence of capital increases,” said Siddharth Shah, CEO of API Holdings. This collective capital increase optimizes the capital structure and also improves the company’s net debt position and financial strength, ensuring a clear link to profitability.
In the coming years, EvolutionX plans to build a strong pipeline of investment opportunities and provide term debt repayment facilities – ticket sizes from $20-50 million – along with warrants or convertible instruments.