India-based financial services firm HDFC Bank has launched a startup investment fund sized between $25m and $30m, the Times of India reported yesterday, citing undisclosed sources.
The fund will be open to investing in startups in all sectors as long as they are a good fit for the bank, a source said. In addition to funding, HDFC will also offer startups banking products, mentoring, and financial and legal advice.
HDFC’s has previously invested an undisclosed amount in online automotive marketplace CarDekho in May 2015, and participated in a $2m round for Kooh Sports, the operator of a children’s fitness and activity testing platform, in December the same year.
A source told the Times of India: “It is a dynamic startup fund and the objective is very clear — start small but keep scaling up. As we understand the ecosystem, we will grow it.
“The government announced a large fund a few years ago but deployment takes time. If there is a right fit with the bank, we will go ahead and fund the startup.”