Business · Companies · 8 hrs ago
HSBC uses more than half of its $1 billion India startup fund
HSBC has deployed more than half of its $1 billion startup fund in India within a year of launching its innovation banking operations there.
The money is being provided as loans to startups, with most going to companies in business-to-business and consumer commerce.
HSBC says demand from Indian startups is strong, and it has exceeded targets for lending, deposits and new clients.
The bank has not decided whether to increase the fund, but its global innovation banking head said it is unlikely to stop at $1 billion.
India and Asia are major strategic priorities for HSBC, which is looking to expand its business in the region.
The bank expects to add at least 500 clients in India over the next year.
HSBC has deployed more than half of the $1 billion it committed to lending to Indian startups within a year of starting operations.
David Sabow, the bank’s global head of innovation banking, said demand from the sector was strong.
Most of the lending has gone to companies in business-to-business, business-to-consumer and consumer commerce sectors.
HSBC has not decided whether to increase the fund’s limit but may allocate more capital in the future.
Sabow said the bank expects to add at least 500 clients in India over the next year.
- Who
- HSBC, as described by its global head of innovation banking, David Sabow.
- What
- The bank has deployed more than half of its $1 billion commitment to loans for Indian startups.
- When
- Within a year of starting operations.
- Where
- India.
- Why
- The bank cited strong demand from the sector and said India and Asia are strategic areas of focus.
This story does not have two clearly opposing sides.
HSBC began operating its innovation banking platform in India and committed $1 billion to startup loans.
The bank had deployed more than half of the committed amount.
Sabow said HSBC expects to add at least 500 clients in India.
- Commitment
- $1 billion
- Deployed
- More than half within a year
- Main lending sectors
- 70-80% in B2B, B2C consumer and commerce platforms
- Expected client additions
- At least 500 in India over the next year
What people are saying
We have made good progress, deploying more than half of the $1 billion committed.
But primarily 70-80% would be B2B, B2C consumer, commerce kind of platforms,