Union Minister Rajeev Chandrasekhar on Thursday said deposits close to USD 1 billion attributable to Indian startups were with the US-based Silicon Valley Bank.
The failure of Silicon Valley Bank (SVB), which was a key funding source for startups, has sent shockwaves across the global financial system. During a Twitter live session, Chandrasekhar said he heard that over USD 200 million of startups’ deposits have been transferred to GIFT City bank. “I had kind of very empirically and anecdotally calculated that there was more than a billion dollars of startups’ capital as deposits. According to some, this is a conservative estimate. There were deposits in SVB that are attributable to Indian startups close to a billion or more,” the Minister of State for Electronics and IT said.
Chandrasekhar also said that he has taken up the issue of SVB failure with the Finance Minister on Wednesday and pitched for fine-tuning the Indian banking system as per the requirement of startups. Responding to a query, he said the country’s semiconductor journey is going to begin in 2023. “We are going to ground break a fab (chip-making plant). We are going to create packaging units in India and by the end of the financial year 2023, I think, there will be more than 50-55 design startups that are doing device design,” Chandrasekhar said.
