PCHFL ties up with API Holdings to offer healthcare financing solutions

INDIA – Piramal Capital & Housing Finance Limited (PCHFL), a wholly owned subsidiary of Piramal Enterprises Limited, has partnered with API Holdings Limited to provide financing solutions to healthcare institutions in India via its digital platform Retailio – India’s largest digital B2B healthcare platform.

API Holdings operates an integrated, end-to-end business that aims to meet consumers’ healthcare needs at all critical stages of healthcare delivery.

Additionally, API Holdings (via its subsidiary) owns the PharmEasy brand as well as the proprietary technology platform that powers the PharmEasy marketplace.

The collaboration aims to leverage respective capabilities in order to provide efficient and seamless financing solutions to API Holdings’ healthcare ecosystem’s consumers, retailers, and merchants.

PCHFL Finance has set aside an initial amount of US$ 13.24 million (INR 1 billion) for disbursement by March 2022, which will be increased based on initial market response.

PCHFL will also offer solutions such as Buy Now Pay Later (BNPL) for consumers and merchants, multi-collateral loans for retailers, supply chain financing, hospital financing, and invoice discounting, among other things.

This alliance capitalizes on the strengths of both companies, resulting in a win-win proposition for all stakeholders, thereby broadening the reach and attracting new customers.

According to Jairam Sridharan, managing director of Piramal Capital & Housing Finance, healthcare has become one of India’s largest sectors, driven by disruptive innovation and rising consumer spending – as people prioritize health and well-being in the new normal.

New age platforms like Retailio are leading the paradigm shift in the sector through impactful and scalable digital health solutions that make a real difference in the lives of people. This partnership is in is line with our strategy of expanding our retail portfolio through a mix of collaboration-led origination model and leveraging our distinguished digital lending capabilities,” said Sridharan.

Going public

In November, API Holdings went public after receiving a nod from the Securities and Exchange Board of India (SEBI) and filed for an IPO worth US$840 million (Rs 6,250 crore).

The pharma retailer intended to use the proceeds to invest in three core areas: marketing and promotional activities, supply chain infrastructure and fulfilment, and technology infrastructure upgrades.

PharmEasy has raised over US$1.2 billion in equity and debt funding to date, with its most recent significant transaction being the $600-million acquisition of diagnostics chain Thyrocare in June of this year.

PharmEasy was also the first unicorn in the online pharmacy start-up world, having achieved the coveted status in April 2021.

Also, MedPlus Health Services Ltd, India’s second-largest pharmacy retailer, announced last month that the Securities and Exchange Board of India (SEBI) has approved its initial public offering (IPO) to raise up to US$ 220 million (Rs 1638.71 crore).

The Hyderabad-based pharmacy retail chain had submitted a Draft Red Herring Prospectus (DRHP) to SEBI in preparation for an IPO in August 2021.

The IPO consists of a fresh issuance of equity shares worth US$80.6 million (Rs 600 crore) and an offer for sale (OFS) of up to equity shares worth US$ 139.6 million (Rs 1,038.71 crore) by the promoter and existing shareholders.

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