HSBC India will lend $ 250 million to startups in the country.
The lending will be done to high-growth, tech-led startups in the third largest startup ecosystem in the world, according to a statement. The lender did not specify the timeframe for disbursal of the amount.
The lending, which comes amid increased focus on startups’ debt needs and a “funding winter”, will be managed by HSBC India’s commercial banking vertical.
Profit of HSBC’s commercial banking vertical in India rose 42% to $ 265 million in 2021, as against $ 187 million in the year-ago period. Loans to small and medium enterprises tripled to $ 1 billion in 2021 as against $ 300 million in 2018.
“We recognize the need for startups to access finance to support their growth ambitions and scale their business,” said Rajat Verma, head of HSBC’s commercial banking in India, said in the statement. “This segment is poised for significant growth and we look forward to supporting its growth momentum.”
The lending will be for growth-stage companies, and the bank has carved out a credit model and offerings to suit the specific requirements of a wide spectrum of startups and new-age entities, ranging from growth stage to unicorns, according to the statement.