The recent collapse of the IT infrastructure provider, SVB, has left many startups in India struggling to find alternative solutions for their business operations. However, fintechs and neobanks are stepping up to extend credit and support to these impacted startups.
In the wake of the crisis, several fintech companies and neobanks have come forward to offer credit facilities to startups. These include companies like Razorpay, NiYO, Open, and Instamojo, among others.
Razorpay, for instance, has announced a credit line of up to Rs. 25 lakhs for startups impacted by the SVB crisis. NiYO, on the other hand, has launched a credit facility called “NeoCash,” which allows startups to avail instant credit of up to Rs. 50,000. Open has also announced a credit facility of up to Rs. 10 lakhs for startups facing liquidity issues.
Speaking about the initiative, Harshil Mathur, CEO and co-founder of Razorpay, said, “As a fintech company, it is our responsibility to support our fellow startups in their time of need. We understand the challenges faced by startups impacted by the SVB crisis, and we want to do our part to help them overcome these challenges.”
The neobanks and fintech companies are not just offering credit facilities but also providing other support services such as payment gateway integration, accounting tools, and access to mentorship programs to help startups navigate through this difficult time.
Instamojo, a digital payment platform, has also announced a mentorship program called “MojoX,” which is aimed at supporting startups impacted by the SVB crisis. The program will provide startups with access to mentors, experts, and resources to help them overcome their challenges.
The initiatives by fintechs and neobanks have been welcomed by the startup community in India, with many startups expressing their gratitude for the support being offered.
“The collapse of SVB has had a significant impact on our business operations, and we were struggling to find alternative solutions. The credit facility offered by NiYO has been a lifesaver for us, and we are grateful for their support,” said a startup founder who wished to remain anonymous.
The support being extended by fintechs and neobanks is not just limited to startups impacted by the SVB crisis but is also aimed at strengthening the overall startup ecosystem in the country.
As the startup ecosystem continues to grow in India, it is important that companies come together to support each other and overcome the challenges faced by the industry. The initiatives by fintechs and neobanks are a positive step in this direction and are sure to have a significant impact on the industry.