Indian Banks to explore co-funding tie-ups to offer loans to startups

New Delhi, July 15 (KNN) Recognizing startups as lucrative business prospects, several Indian banks are currently exploring collaborations with fintech companies and non-banking financial companies to provide loans and investment support to startups, reported Moneycontrol.

“This is an opportunistic market for us. We are looking at an overall change in the culture of the bank,” Srikrishnan H, managing director of the Mangalore-based bank, told Moneycontrol.

Federal bank too is looking at similar partnerships. In February, the bank partnered with Tamil Nadu Startup and Innovation Mission and MindEscapes Innovation Center to support the startup ecosystem in Tamil Nadu.

Shyam Srinivasan, MD of Federal Bank, said it may look at co-lending for startups as the market has the opportunity to grow.

“Look at the bigger India story. The digital space is thriving and with this, we see growth ahead. For lending to startups, we may look at co-lending partnerships,” said Srinivasan.

As per reports, Karnataka bank is also considering a similar partnership.

Recently, funding to Indian startups plunged to about a fifth in the first five months of 2023 compared to the same period last year due to funding winter. (KNN Bureau)