Mumbai: Foreign lender HSBC India on Monday announced that it will lend USD 250 million to startups in the country. The bank did not specify the time-frame for disbursal of the amount. The lending will be done to high-growth, tech-led startups in the third largest startup ecosystem in the world, the lender said in a statement.
The lending, which comes amid increased focus on startups' debt needs by financial intermediaries locally and a 'funding winter' impacting equity funding to the sector, will be managed by the lender's commercial banking vertical. The commercial banking vertical in India had witnessed a 42 per cent jump in its profit for 2021 at USD 265 million as against USD 187 million in the year ago period.
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Loans to small and medium enterprises tripled to USD 1 billion in 2021 as against USD 300 million in 2018, the bank said. "...we recognise the need for startups to access finance to support their growth ambitions and scale up their business. This segment is poised for significant growth and we look forward to supporting its growth momentum," its head for commercial banking in the country Rajat Verma said.
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, the statement added. (PTI)
