Portea Secures $7.7 Mn Loan From US International Development Finance
The loan will be used to support the rapid expansion of Portea Medical's business through digitalization, broadening service offerings, increasing geographical coverage, and developing delivery channels for home-based healthcare
Out-of-hospital consumer healthcare startup, Portea Medical, on Thursday said that it has secured a commitment from the United States International Development Finance Corporation (DFC) for a $7.7 million local currency guarantee facility.
The DFC-guaranteed loan will be used to support the rapid expansion of Portea Medical’s business through digitalization, broadening service offerings, increasing geographical coverage, and developing innovative delivery channels for home-based healthcare, helping reduce pressure on an overburdened hospital system in India, especially during the COVID-19 pandemic.
“Portea has been building its leadership in the outside of healthcare space in this country. Having an entity of the caliber and pedigree as DFC partner with us in this journey is very exciting. They are well known for their focus on creating social impact through investment in businesses in areas including healthcare. DFC's investments are spread across Latin America, Sub-Saharan Africa, the Indo-Pacific, and emerging markets around the world. Their focus on low-and lower-middle-income countries has ensured that organizations get the much-needed financial support for developmental projects. With such a large reach, they have been instrumental in providing direct equity and support for investment funds, as well as direct loans and guarantees of up to $1 billion. This partnership is a validation of the change that Portea is driving in the healthcare ecosystem,” said Meena Ganesh, co-founder, managing director, and chairperson, Portea Medical.
According to a report by RedSeer Consulting, the home healthcare industry in India is slated to grow to $11-$13 billion by 2025. The COVID-19 pandemic has further accelerated this growth. Portea Medical has an array of offerings and introduced path-breaking services such as dialysis and chemotherapy at home during the pandemic. The company is set to strive ahead by expanding its footprint across the country.
“DFC is proud to support Portea Medical, a business co-founded by a woman, in bringing high-quality medical care to patients’ homes - an agility that is needed now more than ever as the pandemic continues to strain resources,” addedAlgeneSajery, DFC’s vice president, office of external affairs and head of global gender equity initiatives. “I am also so happy to see Portea Medical’s continuous commitment to lifting underserved women out of poverty by training them for healthcare careers that will impact lives for generations.”
Setuka Partners LLP based out of Washington DC, led by Aman Khanna, served as the exclusive advisor to this transaction. The DFC guarantee will enable a local commercial bank in India to extend an equivalent INR 52 crore loan to Portea. The structure is significant as it helps in mobilizing local capital for Portea and mitigates foreign exchange risk from Portea’s balance sheet.
During the COVID-19 pandemic, Portea marshaled more than 1,000 healthcare workers and 500 doctors, directly and through partnerships, to deliver home isolation support for COVID-19 patients under agreements with the governments of Delhi, Karnataka, Haryana, Punjab, Chennai, and local administrations. Portea has tended to over 4 lakh (equivalent to 0.4 million) COVID-19 positive patients to date.