DBS Bank India has set aside $250 million (approximately ₹2,000 crore) to extend lending support to new-age startups, recognizing their resilience and potential amid a challenging funding environment. The bank's focus on profitability and efficiency in the startup sector reflects a broader shift in perspective, with startups increasingly prioritizing sustainable growth.
Rajat Verma, head of institutional banking at DBS Bank India, highlighted the opportunity to provide financial assistance to startups that have weathered the storm and are now looking to scale up. The bank is particularly interested in startups operating in healthcare, technology, AI-driven financial services, transportation, logistics, retail, waste management, and supply chain logistics.
Utilizing its extensive corporate banking network, DBS Bank aims to offer a range of tailored financial products and digital solutions to startups, including escrow services, foreign exchange, cash management, trade financing, and regulatory reporting. The bank plans to leverage its expertise in risk management to ensure prudent lending practices while supporting the unique needs of startups in the digital economy.
Verma emphasized that DBS Bank would adopt a flexible approach to credit assessment and risk management, acknowledging the unconventional nature of startup financing. While the bank will not provide equity funding, it remains committed to providing innovative banking solutions to support the growth aspirations of startups across various sectors.
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