Business Standard

Priority lending tag to provide new credit lifeline for young startups

Say banks will have to understand ecosystem's high-growth business model

banks, bank rate cuts, lending rates, deposits, savings, investment, schemes, shares, insurance

There have been instances in the past when start-up founders have had to even mortgage their houses to avail loans from banks

Samreen AhmadSai Ishwar Bengaluru/Mumbai
Ever since the Covid-19 pandemic struck the country, Prakash Kumar, an III-T graduate and founder of start-up KhaaliJeb, has been doing the rounds of offices of venture capital (VC) firms to raise funds for his bootstrapped banking app for the youth. He’s been turned down by 10 VCs so far.

“Pre-2016, a lot of young start-up founders were raising funds. But doing so has become difficulty now for new start-up founders. Most of the funds are being raised by second-time founders or those who have a corporate trail,” said Kumar, who has been bootstrapping KhaaliJeb for two years.

Many start-ups, particularly in

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First Published: Aug 07 2020 | 5:48 PM IST

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