India’s second largest private sector bank, HDFC bank, is about to launch a fund for the startups in India with an initial corpus of US $25 to 30 million. This fund will definitely be like a shot in the arm for the promising startups in India. It will enable them to raise funding with relative ease. Read more about banks
“It’s a dynamic startup fund and the objectives are very clear — start small but keep scaling up. As we understand the ecosystem, we will grow it. The government announced a large fund a few years ago but deployment takes time. If there is a right fit with the bank, we will go ahead and fund the startup”, said an official from HDFC bank.
HDFC bank has been looking to strengthen its presence in the startup ecosystem in India. It is already collaborating with over 150 startups in India. This announcement comes just a few days after the bank launched its SmartUp Zones initiative in Bengaluru. SmartUp Zone means the bank has specific banking zones in a few of its branches that deal with the interests and activities of startups. Over the next few years, HDFC bank plans to launch 65 SmartUp zones across 30 tier 2 cities across India.
As a part of its plan to further support the startups in India, the bank also launched its Industry Academia program where it will collaborate with the incubation and entrepreneurship cells at IIT Bombay, IIT Roorkee and IIM Ahmedabad to mentor the startups at the institutions. The bank also revealed plans to collaborate with other educational institutions for its Academia program.
India is a land of youthful talent. There are many talented and hardworking youth in India who have started a business of their own and whose startups provide essential products or services to the society. Some startups in India are very innovative and produce innovative products or services. It is a matter of pride that India has the 3rd largest startup ecosystem in the world. It is heartening to see India’s second largest private bank take proactive measures to fund and incubate the startups in India. More of India’s banks, government and private alike, should follow suit. Read more on Startup News