Debt financing platform DBS-Temasek EvolutionX invests in API Holdings in India

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EvolutionX Debt Capital, a growth-stage debt financing platform launched by Temasek and DBS, has made its first investment in API Holdings, India’s largest digital healthcare platform, for an amount not disclosed.

The investment marks the first of several planned capital raises and will be followed by a capital injection, Siddharth Shah, co-founder and chief executive of API Holdings, said in a statement on Monday.

API Holdings, which owns and powers the PharmEasy brand and market in India, has over 6 million transacting users, 150,000 active pharmacies and 1,800 hospitals. It also administers more than 21 million tests per year.

Since launching in late 2021, EvolutionX, headquartered in Singapore, has expanded to Mumbai and plans to establish a presence in China next year. It aims to support the growth of Asian tech startups by providing an alternative source of debt financing.

EvolutionX seeks to provide an alternative source of debt financing to enable growth-stage technology companies to scale faster and expand into new markets by leveraging the investment expertise of Temasek and the global banking networks of DBS.

The company notes that growth debt connects and extends the cash trail for startups to the next funding round or exit event while helping founders and investors minimize shareholder dilution.

It aims to create a pipeline of investment opportunities and provide amortizing term credit facilities in the amount of $20-50 million over the next few years across a range of sectors in the Indian, Chinese and from Southeast Asia.

These sectors include health, education, logistics, industrial development and financial services.

“As capital markets continue to be muted and access to private capital shrinks for tech startups, founders and their shareholders are increasingly seeking less dilutive forms of capital to expand their cash trail. and avoid raising equity at lower valuations,” says Rahul Shah, who was recently appointed partner and co-head of EvolutionX’s investments in India and Southeast Asia.

He was previously Head of Corporate Debt Investments for South Asia at British International Investment.

Meanwhile, Calvin Cheng has been named a partner as well as co-head to oversee EvolutionX’s investments across China. He was previously Managing Director and Head of Banking Growth and Technology Group at East West Bank (China).


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