Union IT minister to meet Indian startups amid concerns over Silicon Valley Bank collapse
The meeting came amid growing concern about the spillover effects of the bank’s collapse on startups around the world, including India.
“Start-ups are an important part of India’s new economy. I will meet Indian Startups this week to understand the impact on them and how the government can help during the crisis,” said Rajeev Chandrasekhar, minister of state. IT said on Twitter.
The closure of @SVB_Financial is definitely disrupting startups all over the world. Startups are an important part of #NewIndia E… https://t.co/ToMGlmNcYq
— Rajeev Chandrasekhar (@Rajeev_GoI) 1678593913000
On Friday, US regulators shut down operations for SVB – the main lender to US start-ups since the 1980s – after depleting deposits made the bank the This medium is no longer able to sustain itself.
SVB has been exposed to more than 20 startups in India and started investing here in 2003.
According to startup research advisor Tracxn, SVB has invested in several Indian companies, including Paytm, Carwale, Bluestone, Shaadi and Sarva. In October last year, SVB invested $150 million in contract intelligence firm Icertis.
After the collapse, Mumbai-based startup founders and investors exchanged rumors about which fledgling company might be the first to collapse, Bloomberg reported.
India has one of the largest startup markets in the world, with multiple multi-billion dollar valuations in recent years and the backing of foreign investors who have made bold bets. into other digital and technology businesses.
The failure of SVB, the biggest in the US since the 2008 financial crisis, has roiled global markets, hit bank stocks and is now destabilizing Indian businessmen.
Two partners at an Indian venture fund and a lender to Indian startups told Reuters they were checking with portfolio companies for any SVB risks. and if so, whether it is a significant portion of their total bank balance.
An Indian founder told Bloomberg News that he didn’t get the company’s money and now only has working capital left. Another is rushing to stop and reroute customer payments to his company’s SVB account, and set up new arrangements for salary payments. Three founders and one startup investor say they haven’t slept in 48 hours.
(With input from agencies)