DPIIT and Kotak Mahindra Bank Join Forces to Supercharge India’s Startup Growth Story

In a move that could redefine the contours of India’s startup landscape, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has entered into a landmark partnership with Kotak Mahindra Bank Ltd. The collaboration, formalised through a Memorandum of Understanding (MoU), aims to strengthen the financial and operational backbone of DPIIT-recognised startups, offering them an integrated suite of financial, digital, and mentorship support.

At a time when India’s entrepreneurial momentum is reshaping global innovation narratives, this alliance signals a significant step toward building a more resilient and inclusive startup ecosystem—one that doesn’t just inspire innovation but also sustains it.

DPIIT-Kotak: A Partnership for the New India

The DPIIT–Kotak Mahindra Bank collaboration reflects the government’s ongoing efforts to transform India into a truly innovation-led economy. Through this partnership, the two entities plan to create an enabling ecosystem where founders, innovators, and early-stage businesses can thrive without being weighed down by structural and financial hurdles.

The MoU will see Kotak Mahindra Bank roll out a range of offerings specifically designed for DPIIT-recognised startups. These include zero-balance current accounts, working capital and term loans, API-based digital banking platforms, and tailored payment solutions, along with exclusive startup-focused cards.

But beyond traditional banking, the collaboration goes a step further — offering mentorship, investment advisory, incubation support, and networking opportunities. The goal is to ensure that startups don’t just have access to capital, but also the right guidance and market linkages to scale efficiently.

Empowering Innovation Beyond Finance

Speaking about the partnership, Sanjiv, Joint Secretary, DPIIT, said, “This partnership reflects DPIIT’s ongoing efforts to build a vibrant and inclusive innovation ecosystem that empowers 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.”

The message is clear — DPIIT wants to ensure that innovation in India is not hindered by lack of access, awareness, or mentorship. And Kotak Mahindra Bank’s entry into this mission brings with it deep financial expertise and a robust institutional network that can provide much-needed momentum to emerging ventures.

Raghavendra Singh, President, Kotak Mahindra Bank Ltd., echoed similar sentiments, adding that the bank’s efforts will go beyond financial products.
He noted that Kotak will deepen its engagement with the startup community by offering tailored financial solutions, mentorship programmes, and access to growth networks, enabling entrepreneurs to expand their businesses with greater confidence and clarity.

Addressing the Startup Funding Gap

While India today ranks among the top three startup ecosystems in the world, access to structured and timely funding continues to be one of the biggest hurdles for early and growth-stage ventures. Many promising founders often struggle with liquidity constraints, lack of collateral, or complex compliance processes that slow down their growth trajectory.

By integrating DPIIT’s policy leadership with Kotak Mahindra Bank’s financial infrastructure, this collaboration directly addresses these bottlenecks. The move is expected to streamline financing, enhance operational ease, and provide flexible support systems that cater to the unique needs of startups at different stages of growth.

For the government, it represents yet another strategic push under the broader ‘Startup India Mission’, while for the private sector, it showcases how institutions can play a critical role in enabling India’s next wave of innovation-led growth.

Building Towards ‘Viksit Bharat 2047’

The DPIIT–Kotak partnership also aligns with India’s long-term vision of ‘Viksit Bharat 2047’, which envisions the nation as a fully developed economy driven by technology, entrepreneurship, and sustainable innovation.

Startups are at the heart of this vision — driving employment, solving grassroots challenges, and creating globally competitive products. With initiatives like this, the government and industry are collectively ensuring that the ecosystem not only nurtures ideas but also converts them into enduring enterprises.

A Step Forward for India’s Innovation Journey

This collaboration stands as a testament to India’s maturing startup ecosystem — one where policy meets partnership, and finance meets innovation. By creating structured pathways for growth, the DPIIT–Kotak Mahindra Bank alliance has the potential to serve as a model for how public-private partnerships can accelerate entrepreneurial transformation at scale.

If executed effectively, the initiative could unlock thousands of new success stories across India’s Tier II and Tier III cities, democratizing access to resources that were once limited to urban startup hubs.

As India marches toward becoming a global startup powerhouse, partnerships like these could very well define the next decade of its innovation story — one where ambition meets opportunity, and every founder finds a fair chance to grow.