Startups to get 250 million funding from HSBC India
Lending to small and medium-sized businesses tripled to $1 billion in 2021 from $300 million in 2018, the bank said.
Overseas lender HSBC India announced on Monday that it would lend $250 million to startups in the country. The bank did not specify the time frame for the disbursement of the amount. The loan will be awarded to high-growth, technology-led startups in the world’s third-largest startup ecosystem, the lender said in a statement. The loan, which comes amid an increased focus on the debt needs of startups by local financial intermediaries and a “funding winter” affecting equity financing in the sector, will be managed by the lender’s vertical commercial bank. .
India’s commercial banking vertical saw a 42% increase in profit for 2021 to $265 million from $187 million the previous year. Lending to small and medium-sized businesses tripled to $1 billion in 2021 from $300 million in 2018, the bank said.
“…we recognize the need for startups to access funding to support their growth ambitions and grow their business. This segment is poised for significant growth and we look forward to sustaining its growth momentum,” said Rajat Verma, Head of Commercial Banking in the country.
The loans will be aimed at growth-stage businesses, and the bank has developed a lending model and offerings to meet the specific needs of a wide range of startups and new-era entities, ranging from growth-stage to unicorns, the statement added.