DBS and Temasek on July 30 launched a US$500 million financing platform for growth-stage, technology-enabled companies across Asia, with a focus on China, India, and Southeast Asia.

Headquartered in Singapore, EvolutionX Debt Capital will invest in opportunities arising from an increasingly digital economy – across sectors such as financial services, consumer, healthcare, education and industrial development – to accelerate growth and build the next generation of technology leaders.

Beyond creating a financing solution to fulfil capital funding needs within the industry, the DBS-Temasek partnership also serves as a natural extension to the two firms’ existing early-stage debt initiatives and investment activities.

EvolutionX combines Temasek’s investment expertise and DBS’ global banking networks, thereby creating synergies, to further catalyze the fast-growing technology ecosystem in the region.

Tan Su Shan, DBS group head of institutional banking, says: “Growth debt is fast emerging as an alternative source of financing for high-growth technology companies that traditionally only raised equity as a source of capital. Apart from helping founder entrepreneurs avoid dilution of share equity in the company’s initial stages of development, growth debt also serves as a complementary tool to tide these companies, which are often cash strapped, through unexpected market and economic headwinds by extending their cash runway.”

Rohit Sipahimalani, Temasek’s chief investment strategist, adds:  “We’re 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.”

Amit Sinha, group head of telecoms, media and technology, institutional banking group at DBS, and Aftab Mathur, director, investment (innovation) at Temasek, will jointly head the platform before a full-time chief executive officer is appointed in the next few months.