HSBC launches Innovation Banking in India with $1 billion fund to support tech startups, venture ecosystem

HSBC launches Innovation Banking in India, which is tailored towards the Indian technology and venture ecosystem. HSBC India says it expects to allocate a total of $1 bn in non-dilutive debt capital for Indian startups. The funding allocation is expected to support early to late-stage growth companies to scale operations without diluting equity, helping founders and investors to retain greater control over their businesses.

In addition, HSBC India says it already has a substantial balance sheet allocation for fund financing across venture capital and domestic private equity funds. With the launch of Innovation Banking, the bank aims to expand this offering, encompassing a broader range of funds and propositions. "HSBC Innovation Banking is the leading global banking platform for startups, bringing tailored financing solutions to the innovators and investors who are helping to shape the future economy. With a network of over 900 globally connected experts, it connects innovation-driven ideas with the investments they need to grow and scale," says the bank.

India is the fastest-growing major economy, and its startup ecosystem is among the most dynamic and fastest-growing in the world. By 2030, Indian start-ups are forecast to contribute $1 trillion to the domestic economy and generate 50 million new jobs.

"By expanding innovation banking into India, we are signalling our intent to support entrepreneurial ambition globally. Our $1 bn allocation is a clear sign of our intention to support start-ups on their path to greater growth through funding and accessing the benefits of our global expertise. In doing so, we are making a commitment to India’s innovation economy, job creation, skills development and the country’s economic growth," says David Sabow, Global Head of HSBC Innovation Banking.

Ajay Sharma, Head of Banking, HSBC India, said innovation is reimagining the future of the Indian economy and shaping new global possibilities. "With the launch of HSBC Innovation Banking in India, we are deepening our support for the vibrant startup ecosystem, where we have a proven track record of partnering with clients on their growth journeys. Through the combined strength of our global connectivity and significant venture network, HSBC Innovation Banking is well placed to support Indian startups to scale internationally and access new markets."

HSBC has appointed Dilip Gopinath as the head of HSBC Innovation Banking, India. He will lead a dedicated innovation banking team on the ground, and brings nearly two decades of financial services experience to the role. Most recently, Dilip has driven HSBC’s strategy to support tech startups and companies with tailored financial solutions.

HSBC’s origins in India date back to 1853 when the Mercantile Bank of India was established in Mumbai. Headquartered in London, the bank serves customers worldwide from offices in 57 countries and territories, including the two home markets of the UK and Hong Kong.