For startups, which don’t want to raise funds through typical venture capital route or have not been able to so far, HDFC Bank and Bombay Stock Exchange (BSE) today joined hands to promote listing of startups on the latter’s startup listing platform — BSE Startups. BSE had launched the platform in December last year.
“We are the first bank in India to do so. HDFC Bank already has a startup portal called SmartUp to offer financial and technology support to startups along with to provide mentoring to startups, encourage them through various incubators even as we do an innovation summit annually,” Smita Bhagat, Country Head Government, e-commerce and Start-ups, HDFC Bank told Financial Express Online.
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, added Bhagat.
The bank will also extend support to startups, which aren’t using its services currently, to explore making them its customers later.
HDFC Bank, which has multiple startups using its support services, gives easy access to BSE to attract them on the startup platform that so far has “two companies that have signed mandate for listing and in 30-45 days will have two-three more startups coming forward for listing,” Ajay Kumar Thakur, Head BSE SME & Startup told Financial Express Online.
“Once few companies get listed and we have the momentum then you will find other companies coming forward to get listed,” added Thakur.
BSE Startups will be looking for similar associations with three-four banks in coming months. The exchange has been doing seminars across tier I, II, and III cities for creating awareness among startups for listing on BSE Startups.
As a criterion for listing, BSE will list startups that are technology-based or enabled by technology in areas such IT, ITES, biotechnology and life science, 3D printing, space technology, e-commerce, defence, drones, nanotechnologies, AI, big data, virtual reality, e-gaming etc.
HDFC Bank has 60 dedicated branches for startups across 30 cities in India.