Kotak earmarks Rs 50-crore corpus for startups
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Mumbai: Kotak Securities on Tuesday said it is setting aside a corpus of Rs 50 crore to invest in startups and financial technology companies. It has set up a corporate development department (CDD) for the startup investment and engagement programme, wherein it will be incubating and investing in the innovative companies.
"Broking and distribution business has become more of a technology play, and this has gained further prominence in the new normal. We strongly believe technology innovation will gauge the competitiveness of a broking firm," company's managing director and chief executive Jaideep Hansraj said.
The brokerage will pick up minority stakes in such companies which make a "strategic sense" for it, he added. Its president Shripal Shah, who heads operations, finance and technology, said the brokerage will evaluate opportunities of investing, partnering and incubating startups.
"While we get access to some exciting technology plays, startups get the advantage of product validation, mentorship and institutional capital," Shah explained.
