HDFC Bank, India’s largest private sector bank by market capitalization, has launched a fund for startups with an initial corpus of $25-30 million, according to a report by Times of India.
The bank is also increase the startup fund to more be more in amount after the approvals which are in process.
“It’s a dynamic fund and the objective is very clear — start small but keep scaling up. As we understand the ecosystem, we will grow it. The government announced a large fund a few years ago but deployment takes time,” said a banker to TOI.
HDFC bank is said to be working with over 150 startups and it thought that a fund was the missing piece in its startup related offerings and strategies, and there were no restriction on the focus sectors. “If there is a right fit with the bank, we will go ahead and fund the startup.
To recall, last year, the bank had already launched SmartUp, a first-of-its-kind dedicated solution for startups, to fulfill all their banking needs.
For last couple of years, HDFC has been proactively participating in booming startup ecosystem of India. Last month, HDFC Bank’s Centre of Digital Excellence (CODE) has launched launched Industry Academia to assist fintech startups in India.
In 2015, the bank in its first ever investment picked up minority stake Cardekho.com, a automobile based online portal backed by Ratan Tata.