Indian startups had deposits value about $1 billion (roughly Rs. 8,250 crore) with embattled Silicon Valley Bank and the nation’s deputy IT minister stated he had instructed that native banks lend extra to them going forward.
California banking regulators shut down Silicon Valley Bank (SVB) on March 10 after a run on the lender, which had $209 billion (roughly Rs. 17 lakh crore) in property on the finish of 2022.
Depositors pulled out as a lot as $42 billion (roughly Rs. 3.4 lakh crore) on a single day, rendering it bancrupt. The US authorities finally stepped in to make sure that depositors had entry to all their funds.
“The issue is, how do we make startups transition to the Indian banking system, rather than depend on the complex cross border US banking system with all of its uncertainties in the coming month?” India’s state minister for expertise, Rajeev Chandrasekhar stated late Thursday night time in a Twitter areas chat.
Hundreds of Indian startups had greater than a billion {dollars} of their funds in SVB, based on his estimate, Chandrashekhar stated.
Chandrashekhar met greater than 460 stakeholders this week, together with startups affected by SVB’s closing, and stated he had handed on their solutions to Finance Minister Nirmala Sitharaman.
Indian banks might supply a deposit-backed credit score line to startups that had funds in SVB, utilizing these as collateral, Chandrashekhar stated, citing one of many solutions he had handed on to the finance minister.
India has one of many world’s largest startup markets, with many clocking multi-billion-dollar valuations in latest years and getting the backing of overseas buyers, who’ve made daring bets on digital and different tech companies.
© Thomson Reuters 2023
