Due to the sinking of Silicon Valley Bank in America, there has been a panic in India too. Recently, the former director of Infosys said that this could be a setback for Indian startups.
Silicon Valley Bank drowned, Mohandas Pai of Infosys said – startups will get a big blow
Silicon Valley Bank has been shut down by US regulators and all its assets and deposits have been frozen. In such a situation, due to the bank closure, there has been a panic in India as well. Recently industry leaders and Infosys former director of T V Mohandas Pai has said in this case that such startup Those whose almost entire business and all the employees are in India, if big investors pressurize them to register the company abroad, then they should oppose it. Pai, former director of Infosys and chairman of Aarin Capital, said this in the backdrop of the bankruptcy of major US bank Silicon Valley Bank (SVB).
Pai told the founders of India-focused startups that they should not succumb to this pressure and be cautious if the investors who are funding the companies pressure them to register in the US and open a bank account there. He said that Silicon Valley Bank was a startup friendly bank and its bankruptcy is a blow to the startup ecosystem.
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Startups can be harmed
Talking to PTI, he said, how big this blow is, it can be known only after talking to startup by startup and each founder. Although he said that Indian startups have not taken much debt from Silicon Valley Bank.
Pai said that such startups whose business is based around India and which do not have much concern with the US should operate as a company headquartered in India.
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Most of the software service providers operating in the US will be affected by the bankruptcy of Silicon Valley Bank, Indian startups and companies associated with the incubator Y Combinator. However, industry people and experts believe that this effect will not last long.
Y Combinator-backed startups get paid into an existing account with SVB, though Indian companies associated with the incubator like Meesho and Razorpage have withdrawn their money in time.
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