Hong Kong and Shanghai Banking Corp Ltd (HSBC) has committed $1 billion to fund start ups through loans in India under its so called innovation banking platform. The bank will offer short term working capital and term loans to start ups as it seeks to deepen its existing franchise in the country.
David Sabow, global head of HSBC Innovation Banking said India is the 13th market for the bank with a dedicated platform for start-ups and HSBC will use its balance sheet to support start ups in one of the deepest start up ecosystems in the world.
"HSBC started funding tech start ups with a earmarked balance sheet of $50 million in 2020 which had been increased to $600 million last year. Now with 80% of that amount being committed we have increased it to $1 billion," Sabow said.
HSBC launched its innovation banking proporsition after the acquisition of Silicon Valley Bank in the UK in March 2023. The bank provides banking services and working capital and term loans to early and late stage growth start ups through this programme.
The bank also funds venture capital and domestic private equity funds in India.
Ajay Sharma, head of banking at HSBC India said he expects India to continue to be the innovation hub of the world which means more venture capital money will flow through into the country.
"We see this innovation banking proposition as the start of the journey for a long term relationship," Sharma said.
HSBC a network of over 900 experts globally which help it connect innovation driven ideas with the investments they need to grow and scale.
Bangalore, Delhi and Mumbai are the top cities for startups in India followed by the fast growing Chennai, Hyderabad and Pune markets.
HSBC said India is the fastest-growing major economy and a tech and talent hub.
The startup ecosystem is among the most dynamic and fastest growing in the world. By 2030, Indian start-ups are forecast to contribute $1 trillion to the domestic economy and generate 50 million new jobs, the bank said.
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David Sabow, global head of HSBC Innovation Banking said India is the 13th market for the bank with a dedicated platform for start-ups and HSBC will use its balance sheet to support start ups in one of the deepest start up ecosystems in the world.
"HSBC started funding tech start ups with a earmarked balance sheet of $50 million in 2020 which had been increased to $600 million last year. Now with 80% of that amount being committed we have increased it to $1 billion," Sabow said.
HSBC launched its innovation banking proporsition after the acquisition of Silicon Valley Bank in the UK in March 2023. The bank provides banking services and working capital and term loans to early and late stage growth start ups through this programme.
The bank also funds venture capital and domestic private equity funds in India.
Ajay Sharma, head of banking at HSBC India said he expects India to continue to be the innovation hub of the world which means more venture capital money will flow through into the country.
"We see this innovation banking proposition as the start of the journey for a long term relationship," Sharma said.
HSBC a network of over 900 experts globally which help it connect innovation driven ideas with the investments they need to grow and scale.
Bangalore, Delhi and Mumbai are the top cities for startups in India followed by the fast growing Chennai, Hyderabad and Pune markets.
HSBC said India is the fastest-growing major economy and a tech and talent hub.
The startup ecosystem is among the most dynamic and fastest growing in the world. By 2030, Indian start-ups are forecast to contribute $1 trillion to the domestic economy and generate 50 million new jobs, the bank said.
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