HSBC India to Lend $250 Million to Tech-led Startups

Lenders said in a statement that they plan to lend to high-growth startups focused on technology in the world's third-largest startup ecosystem. Loans made during the "Funding Winter", where local financial intermediaries are paying more attention to the need for start-up lending and impacting the sector's equity financing, are managed by the lender's commercial banking sector.

Profit for commercial banks in India increased 42% from $187 million in the year-ago quarter to $265 million in 2021. Loans to SMEs tripled from $300 million in 2018 to $1 billion in 2021, according to the bank.

Head for commercial banking in the country Rajat Verma said, “We recognize 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.”

Lending is targeted at growing companies, and banks have developed lending models and services to meet the specific needs of a wide range of start-ups and new era companies, from growth to unicorns, the statement added.