Skip to content
Search

Latest Stories

What does the SVB crisis mean for Indian startups

The Silicon Valley Bank was the go-to bank for many Indian startups when they do business in the United States

What does the SVB crisis mean for Indian startups

The collapse of the California-based Silicon Valley Bank last week, which is the the largest bank failure after the 2008 global financial crisis, had sent shockwaves through the Indian startup ecosystem.

The SVB was the go-to bank for many Indian startups when they do business in the United States.


However, with US president Joe Biden announcing that the depositors of the failed bank can access their money from Monday (13) and the Indian government reaching out to startups and venture capitalists on Tuesday (14) to ensure its help in tiding over the crisis, the days of high tension seem to have passed.

How did SVB become so important for Indian startups?

Most Indian startups work in the software as a service (SaaS) industry and United States is one of their primary markets. SVB let these companies, who do not have employees or office in the country, to open accounts without much regulatory questions and partnered with them for venture debt facilities. The bank’s early associations with successful startups, familiarity with the ecosystem and its flexibility in handling recurrent issues made them a preferred choice.

Which Indian startups are affected?

SVB had also invested in many Indian startups, mostly until 2011, after which it had stopped making significant investments. Paytm, one of India’s successful startups, had got a funding of $ 4,637,862,461 and remains one of the biggest beneficiaries of SVB. However, according to Vijay Shekhar Sharma, the founder of Paytm, the Bank is no more a shareholder. Some of the other major startups who have tied up with SVB are Naaptol, BlueStone, InMobi, TutorVista, CarWale and Shaadi. None of these companies have come out with any statements on the crisis yet.

What are the effects of the crisis for Indian startups?

In the short term, meeting payroll will be one of the first concerns as the end of the month approaches. Though SVB has announced that the depositors can start withdrawing money from the bank, many experts think that it can only be done in instalments of small sums. This can pose some problem for the startups for whom timing of the cashflows are very crucial. The silver lining, experts say, is that no company will lose their money given the assurance by the Biden administration.

More For You

David Joseph

Joseph has chaired several BRIT Awards shows and was an executive producer of the Oscar and BAFTA-winning 2015 documentary Amy.

David Joseph named new CEO of the RSA

THE ROYAL SOCIETY OF ARTS (RSA) has announced the appointment of David Joseph CBE as its next chief executive officer. He will take over the role in September, succeeding Andy Haldane.

Joseph previously served as chairman and CEO of Universal Music UK for 17 years. During his time at the company, he oversaw its transformation into a global exporter of British music and worked with several major international artists.

Keep ReadingShow less
Labour Rift Deepens as MPs Prepare for Crucial Welfare Bill Vote

People take part in a protest against disability welfare cuts on June 30, 2025 in London. (Photo: Getty Images)

Getty Images

MPs to vote on welfare bill amid Labour divisions

DOZENS of Labour MPs are expected to vote against the government’s welfare reforms despite recent concessions aimed at easing opposition.

The government had initially planned to tighten eligibility for Personal Independence Payment (Pip) but later said the stricter rules would only apply to new claimants from November 2025.

Keep ReadingShow less
We The Women makes UK debut with stories of courage and truth

Sudha Murthy and Karan Johar

Image Credits: Barkha Dutt / We The Women / Mojo Story

We The Women makes UK debut with stories of courage and truth

Mahesh Liloriya

The acclaimed women-led festival We The Women, curated by veteran journalist Barkha Dutt, made its powerful UK debut on June 29 at London’s Riverside Studios. Presented in partnership with Vedanta, the event brought together transformative voices from India and the British-Indian diaspora, showcasing unfiltered, emotional, and often raw storytelling.

Among the standout moments was Rashmika Mandanna’s candid discussion on her values-first approach to fame. The actor received thunderous applause when she shared, “I’ve said no to scripts because they required me to smoke. If I don’t feel good about something, I won’t do it.” Her firm stance echoed the festival’s core ethos, prioritising authenticity over popularity.

Keep ReadingShow less
Telangana-blast-Reuters

Rescue workers look for survivors after an explosion and fire at a chemical factory, in Sangareddy, Telangana, India, June 30, 2025. (Photo: Reuters)

Reuters

India chemical factory blast death toll rises to 39, probe underway

THE DEATH toll from the explosion and fire at the Sigachi Industries chemical factory in Sangareddy, Telangana, has risen to at least 39, officials said on Tuesday, as rescue teams continued clearing debris for a second day.

The explosion occurred on Monday and turned large parts of the building into rubble. State authorities confirmed the toll had risen to 39, Reuters reported. Thirty-four others were injured in the incident, according to officials.

Keep ReadingShow less
Covid inquiry begins probe into care home deaths

FILE PHOTO: A mother and daughter sit atop the Covid memorial wall on September 9, 2024 in London, England. (Photo by Carl Court/Getty Images)

Covid inquiry begins probe into care home deaths

THE Covid inquiry has started examining how the pandemic affected care services for older and disabled people, with families describing the crisis as one of the worst failures of the pandemic.

Nearly 46,000 care home residents died with Covid in England and Wales between March 2020 and January 2022, with many deaths happening in the first weeks of the outbreak.

Keep ReadingShow less