Recur Club allocates $15M to help Indian startups affected by Silicon Valley Bank fiasco
- ByStartupStory | March 13, 2023
Recur Club, which provides financing and lets founders raise upfront growth capital without dilution, said it has allocated $15 million to Indian startups whose money is stuck in Silicon Valley Bank. It said that no platform fees would be charged on its financing. It will also facilitate the opening of foreign currency accounts in GIFT city.
While the exact number of Indian start-ups with SVB accounts is not known, more than 50 per cent of Indian SaaS companies are estimated to have a US presence, a majority of which were banking with SVB.
It is safe to assume that over 1,000 Indian start-ups have been directly affected by the SVB fiasco, and many more are likely to be indirectly affected. The affected companies range from early-stage to late growth stage, the company said.
“We have created a dedicated RazorpayX desk to help fellow startups move funds from their US banks to India. RazorpayX users can move their money into their Indian current account as FDI through our partner banks. For non-RazorpayX users, we are helping them move their money to a nostro account through our partner banks,” a Razorpay spokesperson said.
Recur Club co-founder Eklavya Gupta said that more than 100 startups are interested in immediate payroll financing and managing short-term expenses. “It is safe to assume that 1,000 Indian startups have been directly affected by the SVB fiasco,” Recur Club said in a statement.
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