California. America’s famous Silicon Valley Bank (SVB) has gone bankrupt. There is a stir all over the world due to this. Due to the bankruptcy of this second largest bank of America, SVB, a big economic crisis can arise. Earlier in the year 2008, Lehman Brothers and Washington Mutual also went bankrupt and this created an outcry. This question has also started arising in the minds of the people that due to the bankruptcy of SVB, can India also be affected? The answer to this question is that the bankruptcy of SVB can affect many startups in India. SVB had invested in 21 startups in India. In such a situation, the bankruptcy of SVB can become a big problem for them.
It is not known how much SVB has invested in startups in India. He made the maximum investment in SaaS-unicorn iSertis. SaaS-unicorn iSertis also raised $150 million in funding in October 2022. Apart from this, SVB also has investments in Bluestone, Paytm, One97 Communication, Paytm Mall, Naaptol Carwale, Shaadi, InMobi and Loyalty Rewards. However, according to Paytm chief Vijay Shekhar Sharma, the bank had already sold the shares SVB had invested in his company. In such a situation, Paytm may not have any problem, but many other companies may face difficulties in raising capital.
Regulators in the US had asked for closure of SVB by declaring it bankrupt last Friday. The Federal Deposit Insurance Corporation was appointed as the asset receiver of the bank after banking regulators announced the closure of SVB. SVB is headquartered in Santa Clara. The bank’s troubles began when parent company SVB Financial announced the sale of shares worth $21 billion from its portfolio. After this money started coming out of the bank. After which the price of SVB shares also started decreasing. The increase in interest rates by the Federal Reserve also impacted the SVB. Investors also sold a lot of its shares. SVB had deposits of $ 189 billion in the year 2021. Still he went bankrupt.