Indian Startup CEO Decodes Effects Of Key US Bank's Sudden Collapse
NDTV
Silicon Valley Bank collapse: "Multiple startups have their money stuck in SVB, the most serious being the ones operating in the US," said Ruchit G Garg, the chief executive of Harvesting Farmer Network
The collapse of Silicon Valley Bank, a key lender to US startups since the 1980s, has also affected several startups in India, hitting their daily cash needs and other running expenses. US authorities swooped in and seized the bank's assets on Friday after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own.
Ruchit G Garg, the chief executive of Harvesting Farmer Network, was among the startup owners in India whose business felt the ripple effect of Silicon Valley Bank's (SVB) collapse, the biggest since 2008 when Washington Mutual sputtered and died.
"We have been banking with SVB for over 10 years. We have deposits that are right now stuck with them. Thankfully for us, the situation is a little bit better as most of our operations are in India," Mr Garg told NDTV today.
"Just by sheer planning and luck we have a lot of money already made as FDI (foreign direct investment) in Indian entities. But still a large portion of our money is sitting in SVB," he said.
