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With Its Unique Banking Services, HSBC Eyes To Be A Valued Partner In A Startup’s Growth Journey

HSBC India’s banking suite for startups offers a dedicated corporate coverage team to meet the specific needs of new ventures from day one

The proposition includes simple and agile banking for transaction banking and access to capital with corporate cards

Easy navigation to international markets, local market insights and access to local business and professional connections

Over the years, the Indian startup ecosystem has grown substantially to become the third-largest startup ecosystem in the world. Inc42 DataLabs data show that India has witnessed the launch of 49K startups and the total funding secured by Indian startups during the last five years stood at $48.5 Bn (2014- Q1 2019).

Being valued at $130 Bn, Indian startups, besides being a lucrative bet for investors across the globe, are now not just limited to Indian borders but are even eyeing foreign markets for expansion.

For any startup, one of the most important foundations which play a pivotal role in and is fundamental in a startup’s growth journey is its courtship with the banking partner who acts as an important ally and ensures the seamless management of the funds, while also pointing them to the right direction whenever required.

To tap into the startup economy, traditional banks have also had to create financial products and propositions that are custom-made for startups to match their expectations and day-to-day needs. We are already seeing this play out in India with major banks launching products that seek to meet the very specific needs of a startup.

However, often there exists a disparity in the services offered by banks to startups which are usually bundled based on the startup’s stage (early, growth or late). Having raised capital, startups in growth and late stage have access to many more banking services in comparison to startups that are in early stages, and thus, startups in early stages often struggle to get priority or premium banking solutions. But startup needs differ from sector to sector and also depend on the business cycle.

Global banking major HSBC contends that a one-size-fits-all approach may not work for India’s startups. HSBC India’s latest offerings for startups levels the playing field with a suite of banking products. The bank has smartly identified all the startup needs including — crucial banking services, access to working capital, and solutions to scale and expand to international markets with a strong and dedicated relationship and service team.

Simple And Agile Banking

HSBC has bridged the banking gap for startups with a banking suite which offers unicorn-grade services to startups irrespective of its stage from day one. For instance, HSBCnet’ offers secure online banking platform built for scale, control, and visibility, letting startups manage their payments, optimise cash flow and liquidity in their business across the globe from one single login.

Scalable, State-Of-The-Art Solutions

In a bid to support, the growth journey of the startup, the scalability of solution acts as HSBC’s main proposition that has a positive impact across the life cycle of a startup. “Our solutions are scalable because we monitor the global trends and try and incorporate that in our solutions today,” Anuj Kanwar, Head of Transaction Banking, Business Banking, HSBC India.

Access To Working Capital

In most cases, startups do not have banking coverage to readily access funds for crucial or emergency payments. To tackle this problem, HSBC offers a procurement card, which comes with an interest-free repayment period of up to 52 days. Added to this, having the dedicated support of a global bank like HSBC is also a validation of the startup’s business and can be leveraged in future fundraising.

Smart Expansion To New Markets

To support a startup’s international expansion plans, HSBC has built a network of local businesses, experts and professionals across 54 countries and territories, covering both developed and developing markets. This means startups can leverage the local market insights, knowledge of international banking regulations through HSBC partners that it has built through its decades-long presence in these markets.

HSBC’s banking suite can be a valued partner for startups in their financial journey, with the commitment and expertise to provide end-to-end support for forex transactions, regulatory reporting, execution of foreign direct investment (FDI), overseas direct investments (ODI), structured escrow transactions along with an access to series of global startup forums, investors and technology hubs.

To know more about HSBC India’s dedicated solutions for Startups, click here.