HSBC, a major international bank, is investing $1 billion to help startups in India grow. This funding will be provided through its innovation banking platform, which supports high-growth, tech-driven companies.
This money will be available in the form of Working capital and Term loans. Working capital helps startups manage their daily expenses, while term loans are longer-term funds that can be used for things like growth or buying equipment. This means HSBC is giving startups flexible financial support based on what they need most.
What is HSBC offering?
HSBC is offering –
- Loans for both early-stage and growing startups.
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Banking services tailored for startups.
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Funding for venture capital (VC) and private equity (PE) firms that invest in startups.
Why is HSBC investing in India?
David Sabow, a senior executive at HSBC, said India is the 13th country where the bank has launched a special “innovation banking” platform. This platform is focused on helping startups, especially in the tech sector. India was chosen because it has one of the largest and most active startup ecosystems in the world.
HSBC believes India is the fastest-growing big economy. By 2030, Indian startups are expected to add $1 trillion to the Indian economy and may create 50 million jobs. By launching this program, HSBC wants to:
- Gain more presence in India’s tech and innovation sectors.
- Compete with other banks and venture capital firms already active in the space.
- Support scalable, high-growth startups that may also expand internationally.
HSBC began supporting Indian startups in 2020 with $50 million. By 2023, they increased that amount to $600 million as demand grew. Since 80% of that money has already been used by startups, HSBC has now raised the total funding to $1 billion to keep up with the growing need. HSBC also got into this space more seriously after buying Silicon Valley Bank’s UK operations in 2023, which specialized in tech and innovation banking.
HSBC has a global team of over 900 experts to help connect innovative ideas with the investment and support they need to grow. Ajay Sharma, who heads HSBC’s banking operations in India, said that India is becoming a global hub for innovation, and more venture capital (VC) money will come into the country. HSBC wants to build long-term relationships with these startups as they grow.
The top startup cities in India are Bangalore, Delhi, and Mumbai, which are the main hubs. Other cities like Chennai, Hyderabad, and Pune are also growing fast and becoming important places for startups.