Singapore has become a hub for startups across the world, with its reputation as a business-friendly destination, low tax rate, efficient legal system, and ease of doing business. In this article, we explore why so many Indian startups have chosen to register their offices in Singapore, and how Singapore can help these startups expand their reach and position themselves as serious players in the global startup ecosystem.
Indian startups may be impacted by the recent closure of Silicon Valley Bank (SVB), which had deposits worth around $1 billion from hundreds of Indian startups. The bank was shut down by California banking regulators on March 10 after depositors withdrew as much as $42 billion on a single day, rendering the bank insolvent. In response to the situation, India’s state minister for technology, Rajeev Chandrashekhar, has suggested that local banks should lend more to startups, rather than depending on the complex cross-border US banking system. Chandrashekhar has passed on his recommendations to Finance Minister Nirmala Sitharaman. This could help Indian startups transition to the Indian banking system and ensure they have access to funding they need, even in times of crisis. Foreign investors have made bold bets on digital and other tech businesses in India, contributing to the growth of the country’s startup ecosystem.