SBI Makes Direct Equity Bets On Startup Funds To Boost MSME Ecosystem

Mumbai, Feb 23 (KNN) The State Bank of India (SBI) is making direct equity investments in startup-focused funds and financial market infrastructure as part of its broader MSME strategy, a senior official said. 

 

Speaking at the ‘India by MSME’ event hosted by UGRO Capital in Mumbai, SBI Managing Director Ravi Ranjan said the bank is backing startups through direct funding and government initiatives like Startup India.

 

“We have been actively investing in startup-focused funds and financial market infrastructure through direct equity participation and schemes like Startup India, and through specialised branches and business centres catering to startup-intensive regions,” Ranjan said.

 

Startups Driving MSME Credit Growth

 

Highlighting the growing role of startups in the MSME ecosystem, Ranjan described them as a symbol of the entrepreneurial transformation underway in India.

 

“As a code for the entrepreneurial spirit sweeping the new India, startups are pivotal in accelerating MSME credit by driving innovation, fostering internet adoption, and creating employment at scale. Unicorns are strengthening technology governance and facilitating economic expansion for MSMEs,” he said.

 

SBI has set up startup hubs across several cities to streamline access to debt, equity and government-backed support. Ranjan said enhanced digital capabilities and focused skill development efforts have also expanded funding access for emerging ventures.

 

Hub-and-Spoke Model for Wider Reach

 

The bank operates a hub-and-spoke model to reach peripheral and underserved regions through specialised verticals. This structure supports compliance with priority sector lending norms while strengthening engagement with startups.

 

“Ensuring tie-ups with startups and fintech enterprises remains a priority area for SBI, as these partnerships enhance agility and resilience while improving supply chain financing efficiency,” Ranjan added.

 

Compliance Remains Non-Negotiable

 

Ranjan emphasised that adherence to prudential norms and regulatory standards remains non-negotiable, even as SBI expands innovation-led financing. 

 

His remarks reflect the bank’s strategy of partnering with startups and fintechs to widen MSME credit access while maintaining strict governance.

 

(KNN Bureau)