SBI to provide access to CGTMSE funds for Elevate winners in Karnataka
KDEM & SBI to partner for India’s first cluster seed fund set up by Karnataka
SBI to partner for Fintech Innovation Hub in Mangaluru
Bengaluru, NFAPost: The Karnataka Digital Economy Mission (KDEM) has partnered with India’s largest public-sector banking conglomerate, the State Bank of India (SBI) to support the startup ecosystem of Karnataka.
KDEM and SBI exchanged a Memorandum of Understanding (MoU) wherein SBI will be now partnering with the Fintech Innovation hub at Mangaluru and leveraging the CGTSME scheme to provide funding support to the start-ups in the state. The MOU is a first of its kind step for start-ups by any banking institution.
Exchanged in the presence of Karnataka Minister for Electronics, IT BT S&T Dr. Ashwathnarayan C N and SBI Deputy Managing Director (Transaction Banking & New Initiatives) Rana Ashutosh Kumar Singh and SBI Chief General Manager (Bengaluru Circle) Nand Kishore. The MoU was signed by KDEM Chief Executive Officer Sanjeev Gupta and SBI NW-I Bengaluru Circle General Manager.
The MoU will empower SBI to build a robust mechanism for the Karnataka Government-recognised startups supported by KDEM to avail financial services including credits to the startups. The important feature of the MOU is to extend Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME) to ELEVATE Winners and to AIF-supported startups of Karnataka.
The Elevate-Idea2PoC was launched by the Department of Electronics, IT, BT, and S&T, Government of Karnataka to identify and nurture innovative start-ups and provide them the necessary boost at various stages through funding or mentoring. So far, we already have 750 ELEVATE winners with us, and with this MOU more than 1000 startups are going to be supported.
Congratulating KDEM and SBI on the MoU, Karnataka Minister for Electronics, IT BT S&T Dr. Ashwathnarayan C N said Karnataka has already established itself as a leading state in the nation with a favourable startup ecosystem supported by a robust policy framework and infrastructure.
“I am pleased that a huge public sector conglomerate such as SBI values the importance of building an enriching environment, that will elevate the state and the nation’s digital economy. I congratulate Shri Sanjeev Gupta and Shri Rana Ashutosh kumar Singh for the signing of the MoU and for their support of the innovation hub in Mangaluru,” said Karnataka Minister for Electronics, IT BT S&T Dr. Ashwathnarayan C N.
Commenting on the MoU Exchange, SBI Deputy Managing Director (Transaction Banking & New Initiatives) Rana Ashutosh Kumar Singh said it is a great pleasure for SBI to partner with organisations such as the Karnataka Digital Economy Mission and the Government of Karnataka that is striving to build a world-class innovation hub and a robust startup ecosystem that will inspire the nation.
“We believe that this is a fitting partnership as we can converge our financial acumen with KDEM’s platform and reach that will together become a gamechanger for the industry,” said SBI Deputy Managing Director (Transaction Banking & New Initiatives) Rana Ashutosh Kumar Singh.
Speaking at the MoU exchange, KDEM Chairman Shri B V Naidu said KDEM has always strived to be an enabler of change and innovation in Karnataka’s startup journey.
“This MoU will add another flavour of comprehensive financial services available to start-ups. SBI has shown keen interest in the opening of the start-up branches in the emerging tech clusters like Mangaluru, Mysuru, and Hubballi in the next 3-6 months. I am happy that SBI has shown keen interest in participating in our cluster seed funds which is the first of its kind in India,” said KDEM Chairman Shri B V Naidu.
The State Bank of India will be opening an exclusive startup desk in the ‘Innovation Tower’ of the Government of Karnataka at HSR layout, Bengaluru to offer services to startups. Subsequently, KDEM will assist SBI in opening branches across the three clusters of Mysuru, Mangaluru, and Hubballi-Belagavi to facilitate and support start-ups based out of these clusters.
Commenting on this partnership, Additional Chief Secretary Dept of Electronics, IT BT S&T Dr. E V Ramana Reddy said this is a significant moment for SBI and KDEM, coming up with a unique platform that empowers the innovation ecosystem of Karnataka for the financial services.
“SBI will also be supporting the fintech task group and be an important partner in executing the strategies for making Karnataka the world’s leading fintech hub,” said Additional Chief Secretary Dept of Electronics, IT BT S&T Dr. E V Ramana Reddy.
While signing the MOU, KDEM CEO Sanjeev Gupta said now that KDEM has SBI, India’s largest public-sector bank supporting Karnataka’s startup ecosystem and he is confident that Karnataka will be the Fintech hub of the world and also aspire to be the top 5 startup ecosystem of the world.
“SBI providing dedicated financial services for startups will now create a growth to the start-up ecosystem in beyond Bengaluru clusters as well,” said KDEM CEO Sanjeev Gupta.
The MoU will further allow the two parties to participate in cluster funds under KITVEN (Karnataka Information Technology Venture Capital Fund). KITVEN Fund has invested in emerging companies with a long-term investment approach and also focused on investments in seed/ rapid growth opportunities within the State of Karnataka.
The Fund has assisted a wide spectrum of companies catering to Information Technology, Biotechnology, and other high-end products/ solutions in the knowledge-based sector and aims to augment the state’s Fintech sector through this partnership.
