Mumbai-based retail banking and financial services provider, HSBC India on Monday announced a $250 million loan to startups in the country. HSBC will manage the loan through its commercial banking vertical.
The announcement comes when startupCredit needs by local financial intermediaries have intensified amid a ‘funding winter’ affecting equity funding to the region.
hsbcRajat Verma, Head of Commercial Banking in the Country, said, “We recognize the need for startups to access finance to support their growth ambitions and grow their businesses. This segment is poised for significant growth and we are looking forward to its growth. Looking forward to supporting the motion,” reported PTI
In addition, in a statement, HSBC said the lending will be made to high-growth, tech-led startups in the world’s third-largest startup ecosystem.
Also, loans will be given to growth-stage companies.
HSBC has created a credit model and offerings that are tailored to the specific needs of a wide spectrum of startups and new age entities, from the growth stage to the unicorn.
In 2021, HSBC’s commercial banking vertical in India reported a 42% increase in its profit to $265 million as compared to $187 million in the year-ago period. In addition, the lender’s loans to small and medium enterprises have tripled to nearly $1 billion compared to $300 million in 2018.