Following the demise of Silicon Valley’s bank, the ripples have been felt in far-off India. It is known that many companies have business links with American offices, and in one such instance, a mobile gaming company, Nazara Technologies, has been hit, leading to a drastic fall in share prices.
Shares of Nazara Technologies plummeted to 6.5 percent after it revealed that it had two of its subsidiaries had accounts with the Silicon Valley bank. The two units added up to $7.7 million in balances in the collapsed bank.
The collapse of SVB is likely to adversely impact the Indian startup scenario, as well as it has brought a lot of uncertainty overnight in the sector.
Meanwhile, Indian officials, like many of their counterparts in other parts of the world, pacified the investors, saying that the meltdown would not impact the nation’s banking ecosystem. They also informed that they would be meeting up with representatives of the Indian startup community in the coming days. They will then figure out the impact on them.
For the unversed, the Nazara company’s portfolio includes games based on Chhota Bheem, and the company clarified they had enough funds to go ahead as always. Meanwhile, another customer Ruchit Garg, who heads Harvesting Farmer Network, said he was relieved that he was backed by US regulators. Barring a few startups, the damage will not be much.
Incidentally, Sensex and Nifty 50 were down by 1.5 percent as soon as the news came out.
