Founder and Chief Govt Officer of Paytm Vijay Shekhar Sharma on Saturday stated that collapsed Silicon Valley Financial institution (SVB) is just not a shareholder of Paytm as of now. Reacting to the information relating to the impact of SVB’s collapse on Indian start-ups, Sharma stated that SVB was one among Paytm’s first buyers however they existed the agency “lengthy again”
Vijay Shekhar Sharma Tweeted, “Silicon Valley Financial institution was one among my first investor when @AshLilani supported us in first round of investments at One97. Because of him, we grew from a telco VAS firm to what we’re immediately.”
Silicon Valley Financial institution was one among my first investor when @AshLilani supported us in first round of investments at One97.
Because of him, we grew from a telco VAS firm to what we’re immediately. 😇🙏
Lengthy again, by promoting to different personal buyers, #SVB exited totally with good-looking… https://t.co/l7x9ElnrbG pic.twitter.com/t1ttYPOEXl
— Vijay Shekhar Sharma (@vijayshekhar) March 11, 2023
“Lengthy again, by promoting to different personal buyers, SVB exited totally with good-looking returns on their complete funding of solely $1.7Mn. They neither are a present shareholder nor invested the quantity given right here,” stated the Paytm CEO
Sharma’s tweet comes after SVB collapsed on Friday. Silicon Valley Financial institution (SVB) was considered a serious US lender for enterprise capital-backed firms, particularly for tech start-ups. The closing of SVB is seen as the most important financial institution failure since Washington Mutual through the top of the 2008 monetary disaster.
With $210 billion in belongings, Silicon Valley Financial institution ranks because the sixteenth largest financial institution within the US, in keeping with the AP report. It stated that the financial institution labored as a monetary lender for enterprise capital-backed companies, which have been severely impacted over the previous 18 months on account of the Federal Reserve elevating rates of interest and lowering investor demand for dangerous digital belongings. The Federal Deposit Insurance coverage Company (FDIC), which generally protects deposits as much as $2,50,000, stated it had taken cost of the roughly $175 billion in deposits held on the financial institution.
Different India Begin-up founders have additionally reacted to the information. Snapdeal’s Kunal Bahl stated SVB lent them cash in 2012 when the enterprise was grappling with a money crunch.
Bahl tweeted, “In 2012, within the midst of pivoting our enterprise mannequin from on-line coupons to e-commerce, we discovered ourselves in a money crunch as buyers weren’t satisfied we might pull it off.”
In 2012, within the midst of pivoting our enterprise mannequin from on-line coupons to e-commerce, we discovered ourselves in a money crunch as buyers weren’t satisfied we might pull it off.#SiliconValleyBank prolonged a small debt line to us that stored us going. Hope they get previous this part.
— Kunal Bahl (@1kunalbahl) March 10, 2023
CEO of Mumbai-based Verak Insurance coverage Rahul Mathur stated his firm was amongst these affected. He tweed, “> 60% of YC backed co’s have > $250K in SVB financial institution accounts (supply: YC WhatsApp group). FDIC insurance coverage restrict is $250K – some startups may very well be prone to dropping massive cash:”
There are some YC firms working in India (possibly ~10%) with greater than $1M in SVB accounts.
Widespread sense: YC’s new “primary” deal is for $500K – and also you’d elevate at the very least $1M extra from different buyers.
Fortuitously, for us – the full legal responsibility is proscribed to $188K.
— Rahul Mathur (@Rahul_J_Mathur) March 11, 2023
“There are some YC firms working in India (possibly ~10%) with greater than $1M in SVB accounts. Widespread sense: YC’s new “primary” deal is for $500K – and also you’d elevate at the very least $1M extra from different buyers. Fortuitously, for us – the full legal responsibility is proscribed to $188K,” Mathur added.
