Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, Government of India, has signed a Memorandum of Understanding (MoU) with Kotak Mahindra Bank Ltd. to enhance both financial and non-financial support for startups across India.
Purpose of Agreement
- The partnership aims to create a comprehensive ecosystem enabling startups to access:
- Customized banking and credit solutions
- Digital infrastructure and payment systems
- Funding opportunities
- Capacity-building and mentorship programs
- It aligns with DPIIT’s mission to build an innovation-led economy and supports India’s goal of becoming a global startup hub.
Key Features of Collaboration
Banking Support
Kotak Mahindra Bank will provide DPIIT-recognized startups with:
- Zero-balance current accounts
- Working capital and term loans
- API-based digital banking platforms
- Digital payment solutions
- Specialized startup cards for simplified transactions
Non-Financial Support
- Mentorship and advisory services for business strategy, fundraising, and operations.
- Access to incubation support and networking opportunities with investors and industry leaders.
- Investment advisory and market linkage programs to help startups expand globally.
Comprehensive Ecosystem Support
The initiative aims to bridge the gap between innovation and finance, offering a one-stop support system encompassing:
- Banking services
- Funding access
- Technology enablement
- Market expansion opportunities
Significance
- Strengthens India’s startup ecosystem through structured financial inclusion.
- Empowers startups from ideation to scaling through professional mentorship and banking integration.
- Encourages formal credit access for startups that struggle to secure traditional financing.
- Reinforces India’s vision of becoming an innovation-driven, self-reliant (Atmanirbhar) economy.
Current Startup Landscape in India
- India is the third-largest startup ecosystem globally, after the USA and China.
- As of 2025, India has over 1.5 lakh DPIIT-recognized startups spread across:
- Technology and fintech
- Healthcare and biotech
- Manufacturing and agritech
- Services and logistics
- Many startups face barriers in accessing formal credit systems, making such partnerships vital for sustainability and growth.
About DPIIT
- Full Form: Department for Promotion of Industry and Internal Trade
- Parent Ministry: Ministry of Commerce and Industry, Government of India
- Functions:
- Policy formulation for industrial development and investment promotion
- Oversight of the Startup India initiative (launched in 2016)
- Facilitation of Ease of Doing Business reforms
- Development of foreign direct investment (FDI) policies
About Kotak Mahindra Bank
- Founded: 2003 (became a full-fledged bank from Kotak Mahindra Finance Ltd.)
- Headquarters: Mumbai, Maharashtra
- Founder: Uday Kotak
- Regulator: Reserve Bank of India (RBI)
- Notable Initiative: One of India’s leading private sector banks known for its focus on digital banking, SME lending, and startup partnerships.
Key Facts
Startup India Initiative:
- Launched by Prime Minister Narendra Modi on 16 January 2016.
- Implemented by DPIIT.
- Aims to promote entrepreneurship, simplify regulations, and provide funding support through the Fund of Funds for Startups (FFS) managed by SIDBI.
Fund of Funds for Startups (FFS):
- Launched in 2016 with a corpus of ₹10,000 crore.
- Managed by SIDBI (Small Industries Development Bank of India).
- Supports SEBI-registered Alternative Investment Funds (AIFs), which invest in startups.
India’s Unicorn Landscape (as of 2025):
- Over 115 unicorns (companies valued at $1 billion or more).
- Key sectors: Fintech, SaaS, E-commerce, Healthtech, and Edtech.
Global Startup Rankings (2024):
- India ranks 3rd globally in number of startups and 2nd in innovation quality among middle-income economies (as per Global Innovation Index).