By BD Narayankar

Bengaluru, Dec 3 (UNI) Axis Bank has solidified its position as a major financial partner for India’s startup ecosystem, managing ₹25,000 crore in deposits while extending ₹2,000 crore in loans to entrepreneurial ventures. Remarkably, the bank has maintained a clean slate, with no write offs and delinquency recorded on its lending portfolio.

This achievement highlights Axis Bank’s dual focus on supporting the growth of startups and exercising cautious financial management. By carefully assessing business models and ensuring creditworthiness, the bank has successfully balanced risk while fostering innovation in one of India’s fastest-growing sectors.

"The ₹25,000 crore deposit portfolio includes accounts from startups in sectors like fintech, e-commerce, and SaaS. The ₹2,000 crore lending portfolio focuses on Series A, Series B startups, with no write-offs," Axis Bank New Economy Group, Financial Sponsors, and Multinationals Coverage President Sanjiv Bhatia told reporters in a roundtable conference here on late Monday evening.

Bhatia attributed this success to tailored financial products, robust monitoring systems, and a strategic emphasis on startups with demonstrated growth potential. "With plans to expand its presence in the ecosystem, Axis Bank aims to strengthen its contribution to India’s entrepreneurial journey," he said.

The official emphasised the bank's approach of engaging with startups at early stages, often years before major milestones such as IPOs. "This strategy ensures alignment with public market investors while providing startups with the tools they need to scale sustainably. With Indian startups increasingly shifting towards sustainable and efficient operations, Axis Bank sees this as a prime opportunity to deepen its involvement," he said.

Axis Bank plans to significantly expand its deposit and lending books, aligning with the growing vibrancy of the Indian startup ecosystem. Bhatia noted that startups are increasingly shifting towards sustainable operations, reducing cash burn, and pivoting business models, developments that create a favourable environment for long-term banking relationships.

Bhatia said the bank has also bolstered its startup-focused operations through its 75-member New Economy Group, which specialises in managing startup relationships, private equity funding, and credit appraisal. "While scaling back international operations, Axis Bank continues to facilitate cross-border transactions and foreign currency loans through platforms like GIFT City," he said.

Axis Bank Deputy Managing Director Rajiv Anand reiterated the bank’s commitment to being a key financial partner for startups, leveraging its competitive lending rates and sector-specific solutions. "The bank’s lending rates are 200–300 basis points lower than those offered by venture debt providers, making it an attractive option for startups seeking cost-efficient funding," he said.

With a combination of robust deposits, disciplined lending, and an innovative approach to client engagement, Axis Bank aims to strengthen its role in driving the growth of India’s startup ecosystem, Anand said.

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