DBS Bank India’s $250 Million Commitment to Startups

DBS Bank India has committed $250 million (approximately ₹2,000 crore) to lend to new-age startups. This decision comes as operating metrics have enhanced, and a keener focus on profitability has improved the confidence in the sector after facing a prolonged funding slowdown.

The Managing Director and Head of Institutional Banking at DBS Bank India, Rajat Verma, stated, “It is not a bad time to think about supporting startups because several of them have been stress-tested and have not raised that much equity. There is also a fresh look at becoming more productive, more profitable and to see the difference between what is essential and what is not.”

DBS Bank is evaluating several startups, including in technology, healthcare and firms using Artificial intelligence (AI) in financial services, such as insurance, retail, logistics, transportation, waste management companies and supply chain logistics spaces.

The multinational bank aims to leverage its extensive corporate banking network to offer services like foreign exchange, cash management, and escrows, along with cutting-edge digital solutions, advisory, trade financing, sustainability, and regulatory reporting to Indian startups.

Rajat Verma added, “I could tell you more broadly the type of companies that we’ll be working with – platforms who are lending into, say, this sector; it could be a non-bank finance company which is lending into new-age (sectors). We could be working with companies in the mobility segment; there are several of them who we’ll look to support. We see a massive clean-tech movement in mobility.”

DBS Bank will use a thorough evaluation process to offer specific banking solutions to the startup sector, which has faced “unique hurdles” in the digital economy.

Talking about risk management, the MD and Head of Institutional Banking stated that it was important to note in mind that the bank would not play the role of an equity provider while being less conventional about how it approaches credit to the startup space.

About DBS Bank

DBS Bank is a leading financial services group headquartered in Singapore. It is the largest bank in Singapore. The bank operates across 18 markets and is an Asia-centric commercial bank. They have been serving their customers all over Asia for about 40 years. In India, DBS Bank has more than 500 branches located across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.