HDFC, which has been engaging with startups from quite some time and had launched multiple initiatives last year as well, is now looking at putting up to Rs 100 crore annually in technology startups.
Mortgage finance company HDFC, which has been engaging with startups from quite some time and had launched multiple initiatives last year as well, is now looking at putting up to Rs 100 crore annually in technology startups. HDFC’s chairman Deepak Parekh at an event on Tuesday announcing the company’s plans added that a dedicated team will also be set-up understanding the startup ecosystem to invest in startups, as reported by PTI. HDFC joins the long list of Indian and foreign corporates that are backing startups to have a share in their innovative business ideas and help them gain scale. Google, Microsoft, Reliance, SoftBank Group, Samsung, Alibaba, Flipkart, Tencent, Reliance, Times Group, Qualcomm, Intel, Naspers, Target etc. are some of the large businesses backing startups in India either in the form of venture capital arms, family office, incubator/accelerator vertical or investing on a standalone basis.
The team, once set-up, will start operating in two months at HDFC. Stressing on the role of startups and entrepreneurs amid the current economic downturn, Parekh said “Do not be disillusioned with the current difficulties. The tide will and has to change.” HDFC Bank had last year in April tied-up with Bombay Stock Exchange to help startups list. “Helping startups list will be one of the many support services offered by HDFC Bank to raise funds even as it becomes easier for investors to invest and exit from listed companies as they can trade shares,” Smita Bhagat, Country Head – Government, e-commerce and Start-ups, HDFC Bank had told Financial Express Online.
The bank had also launched a co-branded credit card in tie-up with government’s Common Service Centre focused on entrepreneurs and small traders in smaller markets. In addition to these initiatives, the life insurance arm of the group — HDFC Life had partnered with venture capital fund IvyCap Ventures’ networking platform IvyCamp to support startups working on emerging technology in the insurance value chain under its short term corporate engagement programme. HDFC already has a dedicated pool of services for startups under its SmartUp solution to offer forex, bulk payments, corporate salary accounts, depository services etc.