SVB fallout: Nazara Tech says Rs 60 crore shifted to other bank accounts

Nazara informed that both the companies — Kiddopia Inc and Mediawrkz Inc — have been given unrestricted access to the entire amount of USD 7.75 million (Rs 64 crore) that was held at SVB.

“From this amount, a sum of USD 7.25 million (Rs 60 crore) has been transferred to bank accounts outside of SVB and the balance amount of USD 0.5 million (Rs 4 crore) remains in SVB accounts for unrestricted operational use,” the company said.

The abrupt failure of SVB last week had left many startups, tech companies, entrepreneurs and VC funds nervous and jittery about their deposits.

SVB was deeply entrenched in the tech startup ecosystem and the default bank for many high-flying startups. Its abrupt fall marked one of the largest bank failures since the 2008 global financial crisis.

US Treasury Secretary Janet Yellen had approved actions enabling the FDIC to complete its resolution of SVB in a manner that fully protects all depositors.

Federal regulators stepped to back all SVB deposits.

Minister of State for IT Rajeev Chandrasekhar on Tuesday said the ministry will take up the woes of Indian startups impacted by the SVB collapse with the finance ministry to help them navigate through the crisis and address the immediate liquidity crunch they are facing.