China's Largest Bank Announces $200 million Fund for Indian MSMEs and Startups
'Second Startup India Investment Seminar' was organized in Beijing to foster innovation in trade between the two neighbouring nations
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The India unit of China's largest banking corporation Industrial and Commercial Bank of China (ICBC) announces an investment of up to $200 million in favour of Indian Micro, Small and Medium Enterprises (MSMEs) to boost growth in the 2nd 'Start-up India' Investment Seminar organized by the Indian Embassy in Beijing on Nov 13.
The event was organized by the Embassy of India in China and Startup India Association to foster innovation in trade between the neighbouring nations.
Zheng Bin, a chief executive officer of ICBC India, shared the bank's experience in India in the conference. Bin also gave an overview of the Indian startup ecosystem and explained the process of investment. He also informed that ICBC India has established a $200 million fund for investing in promising Indian MSMEs and ventures, says the press release by Indian Embassy.
The event was planned to expose Chinese VCs and investors to Indian entrepreneurs in order to build a network with them. According to the press release, "Around forty-two Indian entrepreneurs representing 20 Indian startups participated in the event and pitched before Chinese investors to make investments in their ventures. More than 350 Chinese Venture Capital (VC) funds, angel investors participated in a day-long pitching session and seminar."
It adds that four out of 12 Indian startups received the secured funding of up to $15 million from the Chinese venture capitalists and angel funds present at the event. Chinese investors are also likely to invest $30 million in total eight startups.
The ICBC bank is one of the largest banks in the world. This year, the bank has also launched the first-ever India-dedicated investment fund in May to urge Chinese investors to infuse money into it.
This move will further strengthen the trade ties between both the countries. Also, the global consultancy firm KPMG China released a report named "India – China: Startups & Beyond" in the event, which gave a detailed account of the Indian startup ecosystem and why it is the right place for making venture investments.
The ICBC Bank had launched in India in 2011. Since then the bank is helping Indian startups and ventures in its growth and credit requirements. The bank was also reportedly eying to open a second branch in India, but the Indian Ministry of Home Affairs raised objections to the proposal.