NSRCEL, the entrepreneurship center of excellence at the Indian Institute of Management Bangalore, has signed an agreement with Indian Bank aimed at facilitating funding for identified startups under Indian Bank’s ‘Ind Spring Board’ scheme.
The funding will help these start-ups meet their working capital requirements for growth.
NSRCEL incubates early-stage companies which demonstrate the potential to innovate, implement and create social/ financial impact.
A Memorandum of Understanding (MoU) was signed between Professor Rishikesha T Krishnan, Director of IIM Bangalore, Padmaja Chunduru, MD & CEO, Indian Bank, and K.S. Sudhakar Rao, General Manager (MSME), Indian Bank, on Friday.
In his address, Professor Rishikesha Krishnan described collaboration as a “real privilege”. Explaining the role of NSRCEL in nurturing start-ups across the country, he said: “IIMB’s aim is to provide, through NSRCEL, a supportive system to ventures. This includes mentoring, providing networking opportunities, and access to funding. So far, most of the funding has been focused on equity, mostly through government schemes. There were not too many opportunities for debt financing. That is why this collaboration with Indian Bank is special.”
Welcoming the ventures at NSRCEL who will be availing of the Ind SpringBoard scheme, Padmaja Chunduru took the opportunity to point out that there is a lot of goodwill between IIMB and Indian Bank and referred to the Executive Education Programme, offered by IIMB for bankers, which many senior executives from the bank have been attending. Describing the genesis of the Ind SpringBoard project, she said there has always been a need for debt capital for start-ups as they had never really fit the traditional lending models of banks in India. “Start-ups, no doubt, have a passion for what they do but they also need to understand financial metrics. As sharp and intelligent people, I am sure entrepreneurs will pick up concepts such as cash flow management or balance sheet management, quickly. NSRCEL is training ventures in all these areas. We are delighted to collaborate with IIMB-NSRCEL on this project. I can see that three loans have already been approved, and this is a breakthrough,” she added.
“The partnership with Indian Bank will make debt capital easily available to start-ups which otherwise was hard or non-existent. Many start-ups that are in their growth phase need working capital which can be obtained through this arrangement without having them dilute equity. This unique partnership will provide fast track access for NSRCEL start-ups to the bank’s loan products,” said Professor Venkatesh Panchapagesan, Chairperson, NSRCEL.
“NSRCEL is known for bringing together startups, industry mentors, eminent academicians, and researchers. We are proud of this engagement with IIMB. We believe it will help in providing financial support for economic growth and creation of jobs,” said K.S. Sudhakara Rao, General Manager (MSME), Indian Bank, after listing all the features of the product launched for start-ups.
Earlier in the day, Anand Sri Ganesh, COO, NSRCEL, welcomed the gathering and set the context for the signing of the MoU.