The primary objective of the ‘Startup Fund’ is to provide long term capital to Startup companies with innovative ideas, potential for high growth and ability to bring socio-economic impact.
“The fund will be used for supporting small ticket projects in diverse sectors like Digital Financial Services, Biotechnology, Hi-Tech Farming, Healthcare, Logistics, E-Commerce/E-Markets etc,” the Bank said in an official statement.
The initial corpus is of Rs. 25 crore which is scalable.
“To start with, the Bank will focus on projects in Kerala and Gujarat,” the Bank said.
“Supporting Startups will facilitate job creation and contribute towards economic growth of the nation. The initiative will also support skill and entrepreneurial development,” according to the official release.
In March this year, Federal Bank had joined hands with Startup Village in Kerala and MobME wireless to launch India’s first focused FinTech Accelerator Programme, a unique programme that aims at speeding up technological innovations in the financial sector space.
The Corpus created exclusively for supporting Startups is a step forward which will facilitate young and vibrant minds from even outside the financial sector to nurture their entrepreneurial ideas.