Federal Bank starts corpus for startups

KOCHI: Federal Bank has created a fund exclusively for investment in startups. The aim is to provide long term capital to startup companies with innovative ideas, potential for high growth and ability to bring socio-economic impact.

The fund will be used for supporting small ticket projects in diverse sectors like digital financial services, biotechnology, high-tech farming , healthcare, logistics, e-commerce/e markets etc. The initial corpus is Rs 25 crore, which is scalable, according to a press release of the bank.

To start with the bank will focus on projects in Kerala and Gujarat. In March this year, Federal Bank had joined hands with Startup Village in Kerala and MobME wireless to launch India’s first focused FinTech Accelerator Programme, which aimed at speeding up technological innovations in the financial sector space.