BENGALURU: In response to the SVB crisis, India's startup ecosystem is providing assistance to its peers. Razorpay is assisting SVB holders in moving their funds into partner banks' Nostro accounts. A nostro account is one that a bank holds in a different lender in a foreign currency to store money for its customers.
Another firm Repeat Club, which gives supporting on its foundation, said it has dispensed $15 million to Indian new businesses whose cash is caught in SVB. It stated that its financing would not incur any platform fees. Additionally, it will make it easier to open a foreign currency account in Gift City.
“To assist other startups in transferring funds from their US banks to India, we have established a dedicated RazorpayX desk. Through our partner banks, RazorpayX users can move money into their Indian current account as FDI. A spokesperson for Razorpay stated, "We are assisting non-RazorpayX users in moving their money to a nostro account through our partner banks."
According to Eklavya Gupta, co-founder of Recur Club, more than 100 startups are interested in managing short-term expenses and financing immediate payroll. According to a statement released by Recur Club, "it is safe to assume that 1,000 Indian startups have been directly affected by the SVB fiasco."
