Portea Medical secures commitment from US-based DFC for $7.7 mn loan

Out-of-hospital consumer healthcare company Portea Medical has secured a commitment from the US International Development Finance Corporation (DFC) for a $7.7 million loan. This loan under local currency guaranty facility will assure repayment of a rupee-denominated loan to be issued by a local commercial bank in India.  

The DFC guarantee will enable a local commercial bank in India to extend the equivalent of a Rs 52 crore loan to Portea. The structure is significant as it helps in mobilising local capital for Portea and mitigates foreign exchange risk from Portea’s balance sheet, said the company.

The DFC-guaranteed loan will be used to support expansion of Portea Medical’s business through digitalisation, broadening service offerings, increasing geographical coverage and developing delivery channels for home-based healthcare, helping reduce pressure on an overburdened hospital system in India, especially during the Coronavirus (Covid-19) pandemic.

Meena Ganesh, co-founder, MD and Chairperson of Portea Medical, said, “DFC 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."

She further said, "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.”

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 move ahead by expanding its footprint across the country.

During the Covid-19 pandemic, Portea marshalled 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 0.4 million Covid-19 positive patients to date.

“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,” said Algene Sajery, DFC’s vice president of the Office of External Affairs and Head of Global Gender Equity Initiatives.”  

Setuka Partners LLP based out of Washington DC, led by Aman Khanna, served as the exclusive advisor to this transaction.