The bankruptcy of Silicon Valley Bank in the US has worried Indian startups.
Consequently, Indian companies have started withdrawing their investments from the branch of the bank operating in India.
Silicon Valley Bank has been operating in India since 2003 and has been involved in investment activities for over 20 years. Silicon Valley Bank used to make major investments in startups like Paytm, Inmoby, Karwale, Shaadi etc.
It was engaged in many activities like providing loans, equity investment, investment to start a company, providing additional investment in between, high-speed growth and more investment.
In this situation, Silicon Valley Bank, the 16th largest bank in the United States, was declared bankrupt. It is said that the impact on Indian start-up companies will be minimal. However, a significant number of bank failures have left companies worried.
Paytm clarified that Silicon Valley Bank currently has no investment in Paytm.
After the collapse of major banks in the US in 2008, only now has a bank been declared bankrupt. Subsequently, all deposits in its balance have come under the control of the National Deposit Insurance Corporation of America. It has been reported that transactions including outstanding checks will be completed from Monday through a new banking system so that depositors and customers do not face any problem.