Yes Bank To Cater ‘Future Tech Businesses Of India’ With Its Investment In Venture Catalysts

The integrated incubator Venture Catalysts Group Funds (Venture Catalysts), which provides capital, mentoring, and a network to startup founders from the concept ideation stage to the growth stages of the startup journey, received an investment from Yes Bank on Wednesday. With this investment, the bank hopes to advance its purpose of supporting "Future Tech Businesses of India," promote technological innovation across all industries, including finance, and maybe form partnerships with top tech businesses that Venture Catalysts has backed.

Additionally, the new capital supported two platforms: 9 Unicorns Accelerator Fund, an early-stage sector agnostic investor, and Beams Fintech Fund, which invests in growth stage startups working at the interface of Financial Services and Technology.

Country Head - Transaction Banking, Ajay Rajan said that he believes this partnership to be a  go-to bank for technology start-ups. “We are pleased to partner with Venture Catalysts and the allied platforms – Beams Fintech Fund and 9 Unicorns Accelerator Fund. India is at the cusp of a massive growth and the collaboration between banks and tech companies – especially with fintechs - will play a critical role in this journey.”

Additionally, the agreement is consistent with Yes Bank's long-term growth plan, which calls for strengthening its position through investments in India's expanding tech markets.

Naveen Surya, Co-founding member, Beams Fintech Fund, said “This partnership is a great beginning for the tech ecosystem. YES BANK has always been a visionary bank and a harbinger of innovation related to anything tech. We hope this will encourage other banks and fintechs in the market to partner with groups like Beams Fintech Fund and 9 Unicorns Accelerator Fund. We are aiming to create a large ecosystem consisting of banks, NBFCs and fintech companies to support the tech ecosystem. We are looking forward to working with YES BANK and bringing positive outcomes for all our portfolio companies and founders."

A CAT II AIF named Beams Fintech Fund (Beams) was established at the beginning of 2022 with the goal of creating the biggest fintech ecosystem in India. It will actively invest in cutting-edge technology startups in India's fintech sector, including those in embedded finance, global enterprise SAAS, SAAS for businesses, personal finance management, and neo banking.

Sector-neutral venture capital firm 9 Unicorns Accelerator Fund (9 Unicorns), a CAT I AIF, was established by Venture Catalysts' founding members with the goal of upending concept stage investing in India. The USD 100 million that 9 Unicorns has already raised has been actively deployed. It provides fast-growing, deserving portfolio firms with seed money in the first round ranging from USD 300,000 to USD 500,000. The fund invests in idea stage possibilities as well as a small number of growth stage companies, typically Series C and beyond.