HSBC, Europe’s largest bank by assets, is exploring the launch of a dedicated venture debt fund in India—an initiative that could mark a pivotal shift in the country’s startup financing ecosystem. If approved by regulators, HSBC would become the first commercial bank in India to introduce a venture debt fund, bringing increased credibility and scale to a segment traditionally led by non-banking financial companies (NBFCs).
While the fund’s size and structure are still under discussion, insiders suggest HSBC is targeting operational readiness within the next six months. The proposed fund would complement HSBC’s existing startup financing practice, which has deployed $600 million across tailored banking products over the past three years.
This initiative aligns with HSBC’s global innovation banking strategy, particularly after acquiring the UK operations of the collapsed Silicon Valley Bank (SVB) in 2023. Since then, HSBC has expanded its reach among technology and venture-backed firms in the UK, US, Israel, and Hong Kong.
Venture debt offers startups non-dilutive capital, allowing them to scale operations without giving up equity—especially valuable during early growth stages. HSBC’s entry into this space is expected to increase competition, lower financing costs, and accelerate access to strategic funding for India’s high-growth startups.