IDFC FIRST Bank CEO Urges Startup Founders To Have Adequate Capital Amid ‘Uncertainty’

IDFC CEO Urges Startup Founders To Have Adequate Capital Amid ‘Uncertainty’

SUMMARY

IDFC FIRST Bank’s chief executive officer and managing director V Vaidyanathan has urged startup founders to have adequate capital in an “uncertain world

Speaking at the second edition of Startup Mahakumbh, which kicked off in New Delhi’s Bharat Mandapam today, Vaidyanathan said that even if the startups have a phenomenal economic model, raising an adequate capital is very essential

This year, the Startup Mahakumbh will see participation of nearly 3,000 startups across 12 sector-focused pavilions, including AI, deeptech, healthtech, fintech, cleantech and mobility.

At a time when the Indian startup ecosystem has gained strong momentum, attracting substantial investments, IDFC FIRST Bank’s chief executive officer and managing director V Vaidyanathan has urged the founders to have adequate capital in an “uncertain world”.

Citing US President Donald Trump’s new tariff regime, he further said that startup founders should earn trust to raise sufficient capital for uncertain circumstances.

“I believe that a good model, trustworthiness of the ecosystem and capital makes a good product,” Vaidyanathan added.

He was speaking in a session on ‘role of technology in the financial ecosystem’, moderated by 3one4 Capital founder Siddharth Pai.

The Startup Mahakumbh will see participation of nearly 3,000 startups across 12 sector-focused pavilions, including AI, deeptech, healthtech, fintech, cleantech and mobility.This year’s edition is based on the theme “Startup India @ 2047 – Unfolding the Bharat Story”, aimed at boosting innovation and entrepreneurship in the country. The inaugural event attracted more than 1,300 exhibitors and 48,000 visitors.

As of January 2025, India is home to more than 1.58 Lakh startups which attracted more than $155 Bn of funding in 2024. Out of this, nearly 48% startups are based in Tier II and III cities.

During the Budget speech for 2025-26, finance minister Nirmala Sitharaman announced a new fund of funds (FoF) for startups with a corpus of an additional INR 10,000 Cr, after complete ultilisation of the old INR 10,000 Cr fund.

Besides, the government also enhanced the credit guarantee cover for startups operating in 27 focus sectors including aerospace and defence tech, IT, logistics, renewable energy, financial, education services, among others from the erstwhile INR 10 Cr to INR 20 Cr.