Role of Indian Banks in growth of a Startup
Banks can be a source for Startup’s to generate funds other than investors. Yet as the startup ecosystem is flourishing in India and now also backed by Indian Government by providing Startup India initiative, Indian Banks step ahead to work with startups.
Startup India Initiative has given green signal to startup’s to enter into a broader sector in India. Before the startup bubble was less trustworthy for the investor. More banks are now coming ahead to offer startups with enough amount of funds and services. Today startups are not just limited to a format. They are testing out various things to expand, grow and covert to a profitable company.
Different private banks have already tied up with different startups. It was in news recently about HDFC bank that tied up with a startup called a Tone Tag. This Bengaluru based startup offers a platform on proximity payment service. The banks had also worked with Chillr and Movida.
Chillr is an app based payment system that will help users to transfer funds from one account to another without adding any kind of account information. The second done Movida is another mobile based payment system to pay bills, recharge phone and buy tickets. Banks from private sectors are also actively investing in new startups, conducting contest and supports startups with funds and services.
Axis, ICICI, State Bank of India, etc. is among prominent names in the startup ecosystem. Bank’s instead of playing like an investors, prefer to use the service. Like using a payment gateway to initiate smooth fund transfer, to carry out instant payment, etc. Axis banks has tied up with startups like Vayana Network, Fastacash and Paynear in past. ICICI has tied up with Patym, SBI has tied up with Uber, BankBazaar, etc. SBI has opened a dedicated branch for Startups
- Banks in India are actively participating with startups to improve their service.
- Banks are also conducting various contests for Startups to initiate an instant funding process.