HSBC to boost startup funding across sectors

The bank has already utilized 80% of the $250 mn set aside for startups

- Shayan Ghosh

HSBC India plans to expand its funding corpus for startups after exhausting 80% of the $250 million earmarked last year, a senior executive said, underscoring the lender’s focus on the sector facing funding challenges.

Ajay Sharma, head of commercial banking at HSBC India, said the lender banks 45% of Indian unicorns, and is willing to meet some working capital requirements of startups, while pushing them to maintain high corporate governance standards. Instances of delayed financial reporting and alleged fraudulent practices by some large startups have put the spotlight on governance issues at some entities that have raised billions of dollars from investors.

“This fund is carved out of our balance sheet. We are evaluating having a larger lending appetite for this segment, but the final decision on that is pending," Sharma said in an interview.