Welcome to Alumni & Corporate Relations
Indian Bank, IIT-Madras tie-up to help startups

Indian Bank and IIT-Madras Incubation Cell (IITMIC) have come together to launch an initiative for funding startups. Called IND SpringBoard, the initiative will help startups with proven technology and clear cashflows to obtain finance and advisories. IITMIC will refer promising startups to the bank and also extend advisory to the bank on the business model. The Bank will extend loans of up to Rs 500 million to these startups for their working capital requirements or purchase of machinery and equipment, among others. MD and CEO of Indian Bank Padmaja Chunduru said it is a known fact that banks find it difficult to fund startups as they do not meet the requirements under traditional models of financing. She added that business models involving high technology, lack of visibility of cash flows, high burn rate, and high failure rate make the due diligence process for assessing viability difficult for banks, and hence this segment has been almost completely funded by seed capital or private equity from India/abroad. She said under the initiative, loans up to Rs 20 million are backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme of the government.