MUMBAI (Reuters) – India’s state minister for know-how mentioned on Sunday he’ll meet start-ups this week to asses the affect on them of Silicon Valley Bank’s collapse, as considerations rise in regards to the fallout for the Indian start-up sector.

California banking regulators shut down Silicon Valley Bankon Friday after the a run on the lender, which had $209 billion in belongings on the finish of 2022, with depositors pulling out as a lot as $42 billion on a single day, rendering it bancrupt.

“Start-ups are an important part of the new India economy. I will meet with Indian Startups this week to understand impact on them and how the government can help during the crisis,” Rajeev Chandrasekhar, the state minister for IT mentioned on Twitter.

India has one of many world’s greatest start-up markets, with many clocking multi-billion-dollar valuations in recent times and getting the backing of overseas buyers who’ve made daring bets on digital and different tech companies.

SVB’s failure, the most important within the U.S. because the 2008 monetary disaster, has roiled world markets, hit banking shares and is now unsettling Indian entrepreneurs.

Two companions at an Indian enterprise capital fund and one lender to Indian start-ups informed Reuters that they’re operating checks with portfolio firms on any SVB publicity and in that case, whether or not it’s a important a part of their whole financial institution steadiness.

Consumer web startups, which have drawn the majority of funding in India in recent times, are much less affected as a result of they both don’t have an SVB account or have minimal publicity to it, the three individuals mentioned.

“Spoke to some founders and it is very bad,” Ashish Dave, CEO of Mirae Asset Venture Investments (India), wrote in a tweet.

“Especially for Indian founders … who setup their U.S. companies and raised their initial round, SVB is default bank. Uncertainty is killing them. Growth ones are relatively safer as they diversified. Last thing founders needed”.

India’s Nazara Technologies Ltd, a cellular gaming firm, mentioned in a inventory change submitting that two of its subsidiaries, Kiddopia Inc and Mediawrkz Inc, maintain money balances totalling $7.75 million or 640 million rupees with SVB.

(Reporting by M. Sriram and Munsif Vengattil; Writing by Swati Bhat; Editing by Alexander Smith)