RBL Bank Ltd, the first private-sector bank to open a dedicated branch for start-ups in Bengaluru last month, will launch an Entrepreneur-in-Residence (EIR) programme for fintech start-ups in the next 9-12 months.
The bank has already allocated a 17-seater area within its office in Bengaluru and has forged partnerships with start-up accelerators in and around the city, such as Jaaga, Axilor, Beehive, Headstart and 1Crowd. Through these partnerships, the bank identifies and evaluates relevant start-ups incubated by the accelerators, especially those whose solutions are synergistic with its products and services.
“We have been working with a number of start-ups over the last 6-8 months through our partnerships with start-up accelerators and are currently in the process of evaluating fintech start-ups that can become a part of our EIR programme. At the end of the process, we will shortlist two or three start-ups which will be working in-house, but as independent companies,” Rajeev Ahuja, Head - Strategy, RBL Bank Ltd, told
Besides providing banking services to these start-ups, the Bank also provides mezzanine funding through partners and accelerator funds, ranging from a few crores up to ₹25 crore; which serves as a bridge round to an equity raise of Series B or C funding.
Start-up club The EIR programme is just one of the many strands of RBL Bank’s engagement with start-ups. Earlier this year, the Bank launched India StartUp Club, a fast-track programme to support early-stage start-ups with a bouquet of basic banking services to jumpstart their operations.
The bank already engages with 112 start-ups around the country via this programme. This includes a Green Channel for account setup, payroll services, cash management, trade and foreign exchange service, escrow accounts, transaction banking solutions, customised debit cards and a dedicated hotline.