Singapore-based DBS Bank Ltd (SGX:D05), a multinational banking and financial services corporation with over $330 billion in assets, and Temasek have entered into an agreement to introduce a $500 million growth or early-stage debt financing platform, known as EvolutionX Debt Capital.
Based in Singapore, EvolutionX will be offering non-dilutive financing to early or growth-stage tech-focused firms based in Asia, with a key focus on China, India, as well as the fast-evolving Southeast Asia region.
EvolutionX will bring together Temasek’s investment expertise and experience along with DBS’ international banking networks in order to support the fast-growing Asian tech ecosystem.
The platform is reportedly being led Joint Interim Chief Executives Amit Sinha, Group Head of Telecoms, Media and Technology, Institutional Banking Group at DBS, and Aftab Mathur, Director, Investment (Innovation) at Temasek. These appointments have been made until an official, full-time CEO is hired in the coming months, the announcement noted.
The growth debt capital space can serve as a key opportunity and EvolutionX intends to invest across various sectors including financial services, consumer, healthcare, education as well as industrial development, the announcement confirmed.
The DBS and Temasek partnership is an extension to some of their other early-stage debt projects and related investment activities. It should strengthen their extended network and ecosystem.
Tan Su Shan, Group Head of Institutional Banking at DBS, stated:
“The investment in EvolutionX provides an opportunity for us to play an integral role in nurturing and financing the growth of Asia’s future unicorns, while forging partnerships and ecosystem opportunities with these high-growth technology-enabled companies. As a purpose-driven bank, we believe in investing in solutions that democratise financing access to companies of all sizes and stages of development to give them the best opportunity to achieve their endeavours.”
Rohit Sipahimalani, Chief Investment Strategist at Temasek, remarked:
“We’re therefore pleased to partner with DBS to provide a meaningful alternative for technology-focused growth companies in Asia that may face debt funding needs between the venture debt and late stage debt financing phases. With EvolutionX, we can help provide companies and entrepreneurs the support they need as they continue to scale and expand.”