The mortgage finance company HDFC, which operates the HDFC Bank, has announced to invest up to INR 100 Cr ($14 Million) per year in technology startups. Deepak Parekh, the chairman of HDFC, reportedly announced that the company would create an in-house team to lead the investments.
The HDFC chairman said, “There is a need to invest in ideas of the future in the tech space.” He has also shown confidence that the in-house team will start operating in two months. The team would dedicate to work on understanding the emerging startup ecosystem to figure out the ecosystem.
“At the last board meet, I took an idea of investing INR 100 Cr per year in startups,” Parekh said.
“Do not be disillusioned with the current difficulties. The tide will and has to change,” he told younger entrepreneurs at an event in Mumbai, referring to the ongoing economic slowdown. He is optimistic that the situations would change.
This though, is not the first of such schemes initiated by HDFC. The HDFC has been an investor and enabler for fintech solutions and emerging technologies. And now, it is trying to focus on the futuristic tech startups.
For example, Kerala Startup Mission (KSUM), which is backed by the Kerala Government, signed an MoU with HDFC bank. The MoU was signed in October 2019, and according to the MoU, KSUM will refer startups to SmartUps. And they can avail of the facilities till later this year.
Compiled by: Maumita Mazumdar