HSBC Boosts Commitment to Indian Startups: A USD 1 Billion Push

On Thursday, HSBC announced a significant increase in its lending to Indian startups, raising its commitment from USD 600 million to USD 1 billion. The decision underscores India's growing stature as a global hub for innovation.

HSBC's innovation banking vertical, now active in countries like the US, Israel, and China, offers extensive support to startups, guiding them from initial funding rounds to eventual public listings. Dave Sabow, the global head for the vertical, highlighted India's economic transformation as a key factor in this strategic expansion.

The bank plans to enhance its relationships within the venture capital ecosystem, even lending to startups with high cash burn rates but at lower interest rates than private credit funds. Ajay Sharma, HSBC India's head of banking, signaled a bright future, suggesting that the current billion-dollar commitment is just the beginning.

(With inputs from agencies.)