The US has extended a guarantee to loans of US$9 million (Rs 60 crore) to be given to Healthspring, to help in bridging the gap in medical services.
According to Jonathan Addleton, Mission Director, USAID the loan guarantee will be given through its Development Credit Authority.
According to reports, Ratnakar Bank Limited will be extending the loan under the scheme for a period of five years. During these years, Healthspring is planning its expansion by 10 times to 300 centres.
Vishwavir Ahuja, Managing Director and Chief Executive, RBL said that the bank is topping it up with Rs 40 crore of its funds without any guarantee, making it a Rs 100 crore funding line for the company.
Addleton further added that USAID has participated in six different transactions in the renewable energy and agri space in the country till now and this is the first time that it is supporting the healthcare sector. With the given huge population and the demographics, there is a huge opportunity for the healthcare sector in the country.
Healthspring has 100 doctors and three lakh registered users at present. For expansion, it needs to raise up to Rs 200 crore in equity and there will be one round of infusion in mid-2016. The company had four rounds of fundraising.