Mumbai: JPMorgan Chase Bank India is looking to expand its startup banking segment to include over 100 companies in the coming years, a senior executive said, as it looks to deepen its presence in India’s high-growth technology companies.
The bank started its “innovation economy” business in the US about five to six years ago and then expanded it to other geographies. In India, the business started 30 months ago and has approximately 50 companies, Pranav Chawda, chief executive officer (CEO) of JPMorgan Chase Bank India, said in an interview.
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Globally, JP Morgan Chase saw a 30% growth in its innovation economy—the network of venture-backed companies, founders and investors—client base in 2024, as per its latest annual report.
“We generally focus on companies with a topline of $200 million and more. Most of our clients in this segment have yearly revenues of $200-900 million,” said Chawda, who took over as the CEO in October following the Reserve Bank of India’s (RBI) approval.
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Before his elevation, Chawda headed the bank’s commercial banking business, which he continues to lead. His new role also includes leading the corporate banking division.
The bank, he said, focuses on high-growth companies in technology, fintech, e-commerce, software as a service (SaaS), and health tech that aim to become global companies. “We are looking to cover clients earlier in their life cycle, as early as Series A and be their banking partner as they look to scale and grow the company,” said Chawda.
Investment opportunities
India’s startup ecosystem has been one of its success stories. There are 157,706 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT) as of 31 December. As per consulting firm KPMG, India’s startup ecosystem, ranking third globally with over 100 unicorns, offers rich investment opportunities for foreign investors. The country’s large consumer base and growing digital adoption create significant market potential, it said in a report in December.
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Chawda said that these companies are experiencing rapid growth, leading to constant evolution in their business models, and many are now looking to expand their product or service offerings to the global markets. They believe that a bank with a global presence is better equipped to help them establish operations overseas, he said.
“This can be as simple as opening a bank account in a new country, and as their business grows, they will require more capital,” said Chawda. “They aim to raise significant funds, whether through debt or equity capital and not through the traditional banking channels.”
He added that because some of these businesses are so new-age, the investors who would understand this segment are more likely to be located in overseas markets.
As part of its push to expand the business, some of the bank’s top leaders from India and overseas met executives from the industry. The bank recently organized two events where its senior management met executives from venture capital and founders. Doug Petno, co-CEO, commercial and investment banking, JP Morgan Chase and senior global and regional leaders were also present.
According to Chawda, the first event in Bengaluru brought together representatives from 10 leading venture capital firms that collaborate with JP Morgan in India and abroad. Then, it also hosted its corporate leadership retreat in Jaipur, which attracted founders and chief executives from 16 companies with a combined revenue exceeding $7.2 billion.
He said many startups are at a stage where traditional lending is not suitable. They may need venture debt, a structured debt solution, or offshore financing, as the company might operate locally, but the headquarters or the holding company may be incorporated overseas, such as in Singapore or the US, he said.
