Russia’s state-owned MSP Bank, which focuses on providing finance to small and medium enterprises (SMEs), has signed a pact with New Delhi-based SPA Capital to finance small businesses and start-ups predominantly in hi-tech and innovations space. The agreement was signed on the sidelines of Russia-India business summit addressed by Russia’s President Vladimir Putin and Prime Minister Narendra Modi on 5th October.

According to MSP Bank Board Chairman, Dmitry Golovanov, this is the first step towards expanding sources of finance for SMEs of both counties. “We have been looking for partners in India who could share their experience in accelerating SMEs and start-ups and who could become co-investors in those companies working in the area of industrial and IT innovations,” Golovanov said.

MSP Bank, a part of MSP Corporation, has so far invested over $225 million in hi-tech and innovation start-ups in Russia and has a mandate to expand the portfolio further. Russia currently has changed its legal environment for SMEs making it possible for wholly-owned subsidiaries of foreign entities get financing from MSP Corporation.