HSBC has used over half of $1-billion startup fund within a year: Global innovation banking head David Sabow

Hong Kong and Shanghai Banking Corp (HSBC) has used more than half of the $1 billion it had committed to fund startups through loans in India under its so-called innovation banking platform within a year of starting operations, David Sabow, global head of innovation banking at HSBC, said in an interview.

The top British lender is open to increasing the limits, noting the strong demand from the sector.

Sabow said the bank has exceeded its target in terms of loans, deposits, client acquisition and is looking to deepen its existing franchise in the country.

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“We have made good progress, deploying more than half of the $1 billion committed. This deployment is spread mostly on the portfolio companies across consumer tech, business to business (B2B), business to consumer (B2C) commerce, and a little bit on the enterprise software companies also. But primarily 70-80% would be B2B, B2C consumer, commerce kind of platforms,” he said.

Sabow said though the bank has not yet taken a call on increasing the limit, it is not likely to stop at $1 billion and could increase capital allocation at some point, as strategically, within HSBC India and Asia are big areas of focus. Sabow said he expects to add at least 500 clients in India in the next one year.