13 March , 2023 Fdiindia
Effects of the Collapse of Key U.S. Bank Decoded Indian CEO
The collapse of the Silicon Valley Bank, which has been a significant lender to the startups of the United States since the 1980s, has also impacted numerous Indian startups, hitting their everyday requirements and other operating costs.
The authorities of the United States swooped in and seized the assets of the bank, on Friday, after a run on deposits made it no longer justifiable for the medium-sized bank to stay afloat on its own.
Ruchit G Garg, the chief executive of Harvesting Farmer Network, was among the startup owners in India whose business felt the ripple effect of Silicon Valley Bank’s (SVB) collapse, the biggest since 2008 when Washington Mutual sputtered and died.
“We have been banking with SVB for over 10 years. We have deposits that are right now stuck with them. Thankfully, for us, the situation is a little bit better as our maximum operations are in India”, as stated by Mr Garg.
“Just by sheer planning and luck, we have a lot of money already made as FDI (foreign direct investments) in Indian entities. But still a large portion of our money is sitting in SVB,” he said.
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