HDFC Bank signs MoU with early stage venture capital firm to support startups

Private sector bank HDFC Bank on Tuesday signed a memorandum of understanding (MoU) with a leading early-stage venture capital firm, 100X.VC, to support startups. Through the agreement, the bank will extend its full suite of specialized services and facilities designed for start-ups, known as Smart-Up, to all companies associated with 100X.VC.

Likewise, the bank will extend additional lines of credit and will evaluate investment opportunities in these startups.

Under the agreement, HDFC Bank and 100X.VC will work together in areas of mutual benefit. The venture capital firm will recommend HDFC Bank as the lead bank for all of its investee companies.

Abhishek Deshmukh, Head of Bank Branch – Maharashtra, HDFC Bank, said: “India is among the largest and fastest growing startup ecosystems in the world. In the first half of 2022 alone, 15 startups have emerged as unicorns. In the last decade, we have seen the revival of the startup ecosystem with a more sustainable business model in the form of venture capital. 100X.VC has done early stage ecosystem transformation work since its launch 3 years ago and we look forward to leveraging its experience in targeting startups identified by HDFC bank. Together, we look forward to further increasing our goals of contributing to the Indian startup ecosystem.”

HDFC Bank intends to enhance the ecosystem by supporting innovation and entrepreneurship.

Yagnesh Sanghrajka, Founder and CFO of 100X.VC, said: “We are excited to join HDFC Bank in line with the bank’s ‘SmartUp’ initiative. Under this program, we will jointly foster emerging start-up ideas, cultivate them with seed capital from 100X.VC first check and banking services from HDFC Bank, and access credit seamlessly. 100X.VC and HDFC Bank are fully committed to developing great ideas. The mentorship and resources provided under this program will ensure tomorrow’s entrepreneurs are free to innovate and thrive.”

In addition, the duo will also carry out joint programs for start-ups such as Master Classes. In addition, the bank will evaluate the new companies that refer 100X.VC to it for investment and granting of loans.

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