Minister of State for Electronics and IT Rajeev Chandrasekhar on Sunday said he will meet representatives of start-ups this week to assess the impact of their exposure to Silicon Valley Bank.
"The SVB_Financial closure is certainly disrupting startups across the world. Startups are an imp part of NewIndia Economy. I will meet wth Indian Startups this week to understand impact on thm n how @narendramodi govt can help during this crisis," Chandrasekhar tweeted on Sunday.
The collapse of US-based Silicon Valley Bank (SVB) has rattled the Indian start-up industry. The tech industry is the biggest customer of SVB with a large number of Indian start-ups, especially in the SaaS (software as a service) sector that services US clients, having accounts with the bank.
SVB was deeply entrenched in the tech start-up ecosystem and the default bank for many high-flying start-ups. The sudden collapse of the bank marked one of the largest bank failures since the 2008 global financial crisis.
According to various industry players and experts, most Indian software-as-a-services start-ups with a presence in the US and firms linked to incubator Y Combinator are among entities that will feel the heat of the Silicon Valley Bank collapse but the impact is likely to be short-term.
Y Combinator-backed start-ups get their payments in the accounts they hold in SVB but many of Indian firms linked to incubators like Meesho, Razorpay and Cashfree Payments have said that they have no exposure to the crisis.
Y Combinator-incubated Indian start-up Snazzy's co-founder and CEO Ayush Pateria said that most Indian start-ups, incubated at Y Combinator, who are exposed to SVB, are in their early stage.