HDFC Bank Launches $30 Million Startup Funds
HDFC Bank, India’s second largest private-sector bank, has launched special funds for startups. A total of $25 million – $ 30 million will be invested in helping new ventures raise capital.
The bankers, who have confirmed the development, believe that this funding would be dynamic – which will start small but keep growing. If they find a promising venture or company, they will go ahead and grant the fund.
How HDFC is helping the Startups?
As per the initial reports, the bank is really trying hard to make its presence strong in India’s startup ecosystem. In addition to this, the bank is already working with more than 150 startups around India.
HDFC has also created SmartUp Zones in Bengaluru. As the name indicates, these zones are specific bank zones in the branch; these zones will focus on startup activities and their interests. It is speculated that within a span of few years, HDFC bank will launch more SmartUp Zones in 65 branches around more than 30 cities, that includes Tier II and III cities. In an initiative to support startups, the bank has launched Academia programme, under which, it will work with the entrepreneurship and incubation cells at IIT Roorkee, IIT Bombay and IIM Ahmedabad. HDFC is also trying to partner with educational institution under its Academia programme.
Our country is ranked as third largest startup ecosystem in the world. We have additional 1000 technology startups. The total numbers of technology startups as of now are 5,000-5,200 and previously it was 4,500.
The banking community is taking various initiatives to help the budding startup ecosystem of our nation. Previous year, State Bank of India launched its first exclusive startup bank branch in Bengaluru known as SBI InCube. InCube particularly helps startups with their banking. Other banks which help startups in their early stage of starting venture are YES Bank and Kotak Mahindra.
HDFC is already working with tier II and III cities, and now it’s trying to make capital available to new startups in rural places where they lack infrastructure and support system. Since the funds are presented in dynamic structure, they can be varied and increased when needed. It could be huge useful resource for companies with limited funding which are presented in the country.
With India’s startup ecosystem is growing, will these funds and initiatives by banks will be resourceful?
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