Private sector lender HDFC Bank has announced the signing of a memorandum of understanding with 100X.VC, a notable early-stage venture capital firm, to further its engagement with the start-up ecosystem in the country.
The bank announced the provision of its comprehensive package of specialised services and facilities customised for start-ups, branded as ‘Smart-Up’, for all enterprises affiliated with the venture capital firm. It also announced it would issue additional loans to these start-ups and evaluate their investment potential.
HDFC Bank and 100X.VC will collaborate in mutually advantageous areas as a result of this MoU. All of the venture capital firm's investee firms will be advised to use HDFC Bank as their primary bank. The bank seeks to improve the ecosystem by fostering innovation and entrepreneurship through such partnerships, the statement from the companies said.
The bank will also assess 100X.VC-recommended start-ups for investment and loan extension opportunities. Additionally, HDFC Bank and 100X.VC will also collaborate on initiatives such as Master Classes for start-up enterprises in the country.
The MoU was signed in the presence of Abhishek Deshmukh, Branch Banking Head - Maharashtra, and Yagnesh Sanghrajka, founder & CFO, 100X.VC and Sanjay Mehta, founder & Partner, 100X.VC; Ninad Karpe, Partner,100X.VC, among other senior bank officials.
Speaking on the partnership, Brand Banking Head - Maharashtra at HDFC Bank, Abhishek Deshmukh said, “India is among the largest and fastest-growing start-up ecosystems in the world. In the first half of 2022 alone, 15 start-ups have emerged as unicorns. In the past decade, we have seen the rebirth of the start-up ecosystem with a more sustainable business model in the form of venture capital.”
“100X.VC has done transformational work in the early-stage ecosystem since their launch 3 years ago and we hope to leverage their expertise in mentoring start-ups identified by HDFC bank. Together, we hope to continue growing our objectives of contributing to the Indian start-up ecosystem,” Deshmukh went on to add.
Also reflecting on the partnership, Yagnesh Sanghrajka, founder and CFO at 100X.VC commented, “We are excited to join hands with HDFC Bank in line with the Bank’s ‘Smart-Up’ initiative. Under this program, we will jointly nurture emerging start-up ideas, cultivate them with 100X.VC first cheque seed capital and HDFC Bank’s banking services and access to credit seamlessly.100X.VC and HDFC Bank are fully invested in the development of great ideas. The mentoring & resources provided under this program will ensure that tomorrow’s entrepreneurs are given the freedom to innovate and prosper.”
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