DPIIT and Kotak Mahindra Bank Join Hands to Empower Startups Across India

In a significant step toward strengthening India's entrepreneurial ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, Government of India, has signed a Memorandum of Understanding (MoU) with Kotak Mahindra Bank Ltd. The collaboration aims to provide comprehensive financial and non-financial support to startups across India, bridging gaps in access to finance, advisory, and capacity-building resources.

Building a Stronger Startup Ecosystem

The partnership reflects the Government of India's continued efforts to nurture a self-reliant, innovation-led economy and bolster India's position as one of the world's leading startup hubs. The MoU establishes a strategic framework that connects public policy initiatives with private sector financial capabilities, thereby creating a supportive environment for entrepreneurs to scale their ventures sustainably.

Under the agreement, Kotak Mahindra Bank will roll out a suite of dedicated offerings for DPIIT-recognised startups, including:

• Zero-balance current accounts designed for early-stage startups to minimize banking costs.

• Working capital and term loans tailored for growing enterprises.

• API-based digital banking platforms that allow seamless integration with startup technologies.

• Customized payment and collection solutions to streamline digital transactions.

• Specialized startup cards offering benefits like credit lines, expense management, and rewards.

These financial tools will be complemented by non-financial support mechanisms, such as access to mentorship programs, investment advisory, incubation and acceleration opportunities, and participation in networking events that connect founders with investors and industry experts.

Government's Vision for Inclusive Innovation

Speaking at the MoU signing ceremony, Shri Sanjiv, Joint Secretary, DPIIT, highlighted that the partnership demonstrates DPIIT's commitment to building a vibrant and inclusive innovation ecosystem. He said,

"This partnership reflects DPIIT's ongoing efforts to empower startups at every stage of their journey. By integrating policy, industry, and finance, we aim to strengthen the bridge between entrepreneurial ambition and sustainable impact, ensuring that India's innovators have the right tools to grow globally."

DPIIT has played a pivotal role in fostering India's startup revolution through initiatives such as Startup India, Startup India Seed Fund Scheme (SISFS), and Fund of Funds for Startups (FFS). With over 130,000 DPIIT-recognised startups spanning various sectors and regions, the new partnership seeks to make financing and advisory support more accessible and inclusive—especially for startups in tier-2 and tier-3 cities.

Kotak Mahindra Bank's Role and Vision

Shri Raghavendra Singh, President, Kotak Mahindra Bank Ltd., stated that the collaboration will deepen the bank's engagement with India's startup community.

"Through this MoU, we aim to provide entrepreneurs with financial solutions that evolve with their business journey—from ideation and early funding to growth and global expansion. Kotak will combine its financial expertise with mentoring and ecosystem support to help startups scale efficiently."

Kotak Mahindra Bank has already been an active participant in India's startup ecosystem, supporting fintech innovation and promoting digital transformation through initiatives like API-based banking, Kotak Biz Banking solutions, and partnerships with incubators and venture funds.

Strengthening India's Startup Economy

The MoU between DPIIT and Kotak Mahindra Bank is expected to create a dynamic support system that combines:

• Policy facilitation through DPIIT's Startup India framework.

• Financial enablement through customized banking and credit solutions.

• Knowledge and capacity-building via workshops, advisory programs, and mentorship.

• Market access and networking opportunities with investors, corporates, and accelerators.

The collaboration will particularly benefit startups in emerging sectors such as clean technology, deep tech, agritech, healthtech, and sustainability—areas central to India's transition toward a self-reliant, green, and innovation-driven economy.

A Boost to India's Global Startup Leadership

India currently ranks as the third-largest startup ecosystem in the world, after the United States and China. With more than 100 unicorns and a growing focus on innovation-driven growth, partnerships like this play a vital role in sustaining momentum and bridging systemic gaps.

The DPIIT–Kotak Mahindra Bank partnership will also complement national initiatives like Digital India, Make in India, and Atmanirbhar Bharat, by ensuring that entrepreneurs have access not only to funding but also to mentorship, networks, and market opportunities necessary to thrive globally.

Toward a Self-Reliant, Innovation-Driven Future

As India aspires to become a global startup capital, collaborations between the government and the private sector will continue to be key drivers of success. By leveraging Kotak Mahindra Bank's financial infrastructure and DPIIT's policy leadership, the partnership aims to empower startups at every stage—from early ideation to international expansion—thereby accelerating India's innovation journey.

The initiative reflects a shared vision: to make India a powerhouse of entrepreneurship, technological advancement, and sustainable growth—a nation where every innovator has the resources and support needed to turn ideas into impactful enterprises.