NSRCEL (IIM Bangalore’s entrepreneurship center of excellence), on Friday, announced it has signed an agreement with the Indian Bank, to facilitate funding for identified start-ups under the Indian Bank’s ‘Ind Spring Board’ scheme.
NSRCEL incubates early-stage companies that hold potential in terms of innovation, implementation, and social/financial impact.
This will assist the startups in meeting their working capital requirements for expansion. Prof Rishikesha T Krishnan, Director of IIM Bangalore, Padmaja Chunduru, MD & CEO of Indian Bank, and K S Sudhakar Rao, General Manager (MSME) of Indian Bank have signed a Memorandum of Understanding (MoU) to give it a formal name.
Professor Venkatesh Panchapagesan, Chairperson, NSRCEL said:
“The partnership with Indian Bank will make debt capital easily available to start-ups which otherwise was hard or non-existent. Many start-ups that are in their growth phase need working capital which can be obtained through this arrangement without having them dilute equity. This unique partnership will provide fast track access for NSRCEL start-ups to the bank’s loan products,”
Besides, Professor Rishikesha Krishnan described this collaboration as a “true privilege” in his address. He described NSRCEL’s role in fostering start-ups across the country, “IIMB aims to provide, through NSRCEL, a supportive system to ventures. This includes mentoring, providing networking opportunities, and access to funding. So far, most of the funding has been focused on equity, mostly through government schemes. There were not too many opportunities for debt financing. That is why this collaboration with Indian Bank is special.”
Padmaja Chunduru took the opportunity to emphasize that there is a lot of goodwill between IIMB and Indian Bank and referred to the Executive Education Programme offered by IIMB for bankers, which many senior executives from the bank have attended. She also stated that there has always been a need for debt capital for start-ups because they have never really fit the traditional lending models of Indian banks while talking about this collaborative move.
“Start-ups, no doubt, have a passion for what they do but they also need to understand financial metrics. As sharp and intelligent people, I am sure entrepreneurs will pick up concepts such as cash flow management or balance sheet management, quickly. NSRCEL is training ventures in all these areas. We are delighted to collaborate with IIMB-NSRCEL on this project. I can see that three loans have already been approved and this is a breakthrough,” she added.
“NSRCEL is known for bringing together startups, industry mentors, eminent academicians, and researchers. We are proud of this engagement with IIMB. We believe it will help in providing financial support for economic growth and creation of jobs,” said K.S. Sudhakara Rao, General Manager (MSME), Indian Bank, after listing all the features of the product launched for start-ups.