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Tag: Startup funding

  • LogYcode – Digitizing and automating the Logistics and Supply Chain

    Logistics and supply chain management are the most important attributes for manufacturing and servicing industries. For any business in the ecosystem, an optimized logistical chain is a must. With the vision to create a platform or a marketplace and a central grid which will facilitate the trade stakeholders’ single window digital solutions expediting seamless supply chain movement, Dr. Ambrish Kumar launched LogYcode in 2018.

    LogYcode aims to digitize and automate the logistics and supply chain industry.

    LogYcode Highlights

    Startup Name LogYcode
    Headquarter Delhi NCR
    Sector Logistics and Supply Chain
    Founders Dr Ambrish Kumar
    Founded 2018
    Parent Organization LogYcode Tech Solutions Pvt Ltd
    Website logycode.com

    LogYcode Details

    LogYcode – About and How it works
    LogYcode – Target Market Size
    LogYcode – Founders and Team
    LogYcode – How did it start?
    LogYcode – Name, Tagline, and Logo
    LogYcode – Startup Launch
    LogYcode – Business Model and Revenue Model
    LogYcode – Startup Challenges
    LogYcode – Advisors and Mentors
    LogYcode – Growth
    LogYcode – Awards and Recognition
    LogYcode – Future Plans

    LogYcode – About and How it works

    The web and mobile application ‘LogYcode’ is an e-cloud based platform that can be accessed from anywhere, anytime and using any device that is connected to the internet. The portal facilitates and encompasses almost all prerequisites and mandates of the freight forwarding cycle. It provides the most cost-effective match between freight forwarders, exporters, importers on one hand and air freight carriers on the other. It enables precisely instant and spot price comparison between the preferred carriers for any origin-destination pair based on the customers’ query input and consequently places booking with the opted carrier.

    LogYcode provides an outright digital and integrated experience of the whole freight forwarding process as an alternative to the scattered transaction gateways that a freight forwarder usually goes through. The wide experience states that cost efficiency is directly proportional to the digital integration of processes, which leads to lesser head costs, visibility of the most competitive pricing options, disentangled paperless documentation, archiving of data in e-clouds, reduction in turnaround time, and so on. By syncing all real-time air cargo data into one cloud platform, the customers ought to get what they want: speedy and reliable deliveries, exceptional transparency, and an overall hassle-free logistics experience.

    Furthermore, LogYcode is an online software with multiple user access and does not require any installation or troubleshoot hassles. The customers are given the convenience of both web and Mobile App versions which are synced and equipped with all features. LogYcode offers the only Mobile App service in India offering unique features like real-time Air Freight live rate comparisons, booking of cargo through App, preparation and management of Airway Bills which is a one of a kind experience that freight forwarding professional could not have imagined even till a few months back.

    The customer is given the convenience of preparing Master and House Airway Bills, Manifests within the portal. E-transmission of FWB and FHL data is capacitated which permits end to end real-time tracking of shipments. Finally, the invoices can be retrieved from the portal after the execution of the shipment. The customer can refer to air freight published tariffs and surcharges of all carriers from pan-India locations. With the use of Machine Learning, Artificial Intelligence, Internet of Things and the latest technologies, bring about utmost transparency and visibility to the customer and the parties involved in the supply chain thereby embracing blockchain technology.

    LogYcode’s business model can be stated as an amalgamation of technology with logistics, using state-of-the-art technology to develop a logistics e-marketplace wherein a freight forwarder, shipper, exporter, importer can shop and ship their cargo and avail supply chain services like transportation, warehousing, customs brokerage and so on, experiencing seamless transactions with utmost transparency and visibility. In a nutshell, LogYcode provides cost-effective, efficient and quick means to improve the quality of work.

    Also Read: Cryptocurrency and Blockchain: How can it change India?

    LogYcode – Target Market Size

    The Logistics industry is dynamically evolving as the fastest growing industry globally. The Indian logistics sector is currently at a worth of $160 billion which is expected to reach $250 billion in the next 5 years at a CAGR of 10.5%. The global market size of the logistics industry is $ 4730 billion.

    The coming decade is ought to be a revolution for logistics and supply chain in terms of technological advancement. Technological innovations like Robotics augmented reality, vision picking has already been implemented in warehousing, RFID (Radio Frequency Identification) and shipment tracking systems help in virtually trailing the shipments,

    Machine Learning and Artificial Intelligence leading to predictive and prescriptive analysis beneficial for identifying and targeting prospective and highly profitable business opportunities, production optimization and improving operational coherence. As customers are now addicted and obsessive about pocket services, mobile apps and single dashboards are making way to replace elongated manual procedures. This is the era when consumers cannot wait and so trade cannot wait, so we also witness drones, airships, and hyperloop coming into existence.

    Also Read: List of Top Logistics Startups in India

    LogYcode – Founders and Team

    Dr. Ambrish Kumar is the founder and CEO of LogYcode Tech Solutions Pvt Ltd. He holds the acumen of 12 years of experience in stalwart diverse combinations in the domains of Logistics, Freight Forwarding, CFS, Operation, Supply Chain Management, Warehousing & Evaluating New Project Movements. He has held senior management pedestals of different reputed organizations like APM Terminals India Pvt. Ltd., Eastern Cargo Carriers India Pvt. Ltd and his penultimate tenure were with S.A. Consultants and Forwarders Pvt Ltd, one of the largest logistics company of North India, in the capacity of COO before venturing into establishing LogYcode.

    He has an affluent academic background, having obtained PHD. in Economics, with his thesis on ‘Industrial Policy and Industrial Growth’. Also, his qualifications include M. A. in Economics and an MBA in International Trade. Furthermore, he is a motivational speaker, trainer and an active orator in various educational institutions.

    Mr. Vikas Kharbanda, the co-founder of the company has also been highly instrumental in taking the concept and implementation promptly. He is a professional with over 19 years of experience in various functional areas including Sales, Customer Support, Operations, Marketing and Business Unit leadership roles in various organizations like APM Terminals, Hind Terminals, INTTRA and Kuehne Nagel.

    Mr. Ashish Asaf, the founding member of LogYcode, has remained the Vice-Chairman of S. A. Consultants and Forwarders Pvt Ltd which is one of the largest neutral wholesale freight forwarding companies of India. The logistics fraternity harbors an inevitable relationship with him and sees him as a youth icon because of his supreme success. Ashish Asaf also holds the fame of the ‘Face of the Future’ title and award honored by India Cargo Awards, the most esteemed and renowned award in the Indian Freight Forwarding camaraderie. He is also consulted by various Government trade bodies for advice on the contemporary logistics ecosystem.

    LogYcode – How did it start?

    Along with a perceptive inclination towards technology, artificial intelligence, and human development, the impetus to establish LogYcode is attributed to three major factors. Primarily, the increasing logistics and supply chain cost compels for integration and digitalization of the processes offering single-window solutions. Another major aspect is attributed to improving Government policies and initiatives to bolster the logistics industry and multiply global trade opportunities and investments. The e-commerce industry is overhauling the conventional logistics industry. It offers absolute customer experience like effortless booking of consignments, smooth transaction gateways, transparent tracking, accurate delivery predictions.

    The enormous logistics industry is yet to adapt to the technological advancement and the need of the hour. The initial people are the veterans of the industry and the Vikas, perceived coining of the idea and its execution as a revolution in the logistics market and straightaway planned to join hands to make it a success. The development started for an ERP system for M/s S.A. Consultants and Forwarders Pvt Ltd which is one of the largest neutral freight forwarding companies of India.

    Soon after, the development of a prototype model portal for the customers of SA Group was carried out which was highly innovative addressing the ground realities and pain points of the customers/ clients of the company digitally. The then MD of the SA Group also found the LogYcode portal working successfully for his customers and also increasing revenue for his company with phenomenal turnaround times.

    Tagline of LogYcode is – “Logically coding your future”

    LogYcode, the first half of the name refers to Logistics and logic. The whole idea and the venture is to decode the entangled logistics processes into a simple 5 steps/ clicks process. The code also symbolizes digitization. Hence digitization of the logistics sector logically, thereby leading to a bright future for the customers and the industry.

    LogYcode – Startup Launch

    LogYcode is comparatively a very new startup in the Logistics arena. The idea of LogYcode was conceptualized in November 2017 and the company was incorporated in March 2018. The portal was started serving the B2B model for the freight forwarders of the air freight forwarding sector. The air freight forwarding sector is still working on an orthodox model with multiple windows, time-consuming workflows, scattered gateways, unorganized entities, and low-margin profitability due to sheer competition.

    LogYcode’s initial target consumers happened to be the direct customers of its client M/s SA Group whom the portal was provided without charging any premium. The clients found the portal easy to use, with a seamless user interface and a one-stop solution for most of their work process. The clients started accepting the portal as it was complimentary and served a great deal of their routine work thereby saving time, increasing work efficiency and highly cost-effective. Since then, the journey has been a very enthralling affair. Within just a short span of 8 months, LogYcode recorded approximately 964 users across India.

    LogYcode – Business Model and Revenue Model

    LogYcode has planned customized models based on customer requirements. LogYcode has both customer and vendor portals. There are multiple subscription options and pricing structures based on criteria like Volume of business, Per transaction, per user, and so on. Also, LogYcode software works in the SaaS model as well as per the working requirements of the client.

    Also Read: 5 Types of Business Models Fruitful for High-Income

    LogYcode – Startup Challenges

    The Logistics industry still inadequately strives on an orthodox approach of working, whereas the closest counterparts, the passenger air travel industry, is now majorly based on e-booking platforms and smooth paperless transactions. The customers are accustomed to using emails and phone calls for inquiries and paper-based transactions that spur an initial reluctance to a technological transformation or any kind of change.

    LogYcode – Advisors and Mentors

    The founder Dr. Ambrish Kumar is a mentor and leader of LogYcode and a great visionary who has a clear vision of the future of not just the industry and its stakeholders but how to integrate the various stakeholders of other industries as well.

    LogYcode – Growth

    The recognition and acceptance of LogYcode as a unique revolutionary innovation by the customers just within a span of 8-10 months itself is the biggest achievement. As per March 2020, it has close to 1600 users/ consumers on-board across India and globally. While its control tower happens to be in Delhi NCR, though it has other counterparts across India. As the LogYcode platform creates an e-marketplace where the logistics service seeker from any part of the world can access it anytime from any device connected to the internet.

    LogYcode has received overwhelming penetration and recognition amongst the customers after the implementation endeavors. It has largely carried out training and demonstrations to its customers on a pan-India basis. The customers understand the dire need for automation of processes, accuracy, transparency, visibility thereby reducing turnaround time and following best practices. The sheer conception of saving time, cost and manpower and rather using these elements for more productive endeavors is accepted by the customers phenomenally.

    LogYcode – Awards and Recognition

    • In July 2019, LogYcode became a certified member of IAMAI (Internet and Mobile Association of India).
    • Again in July 2019, LogYcode Tech Solutions Pvt Ltd was recognized as a startup by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Government of India, aligning with the #startupindia initiative.
    • In August 2019, LogYcode was recognized and awarded as the “E-Commerce Startup of the Year 2019” at the 10th All India Maritime and Logistics Awards 2019 (MALA 2019).
    • In Nov 2019, LogYcode became a certified member of NASSCOM and NAP (neutral AIR PARTNER) Association.
    • LogYcode was awarded Certificate of excellence in the category “Vibrant Startup of the Year 2019” by Startup City Magazine
    • The startup also happened to be recommended among the contenders in the pipeline for the digital logistics services for Indian Ports Association (IPA).

    LogYcode – Future Plans

    LogYcode plans to expand outside India on a large scale in a coming couple of years as the team understands that there is a sheer requirement of digitization of the logistics sector globally which is still not at par with the other industries. Hence they plan to create a huge network in the supply chain integrating all stakeholders for smooth movement of trade.

    Also, the team is working to use advanced technologies like Machine learning, AI, IoT to ensure stark visibility and transparency in the movement of goods much needed for achieving high standards of service levels with minimal risk involved.

  • Top Funded Startups India 2019 | Top Startup Funding in India

    For a business venture, funding is important to survive the market drill. From, time to time, the business entrepreneurs and the business ventures, pitch their companies in front of the investors and Venture Capitalist, to get funding and grow their business. These funds are necessary to grow the market aspects of the business and good funding can change the whole face of the brand.

    2019 has been a great year, in terms of Indian business and entrepreneurship. In just half way through the year (July report), there was total of $5.8 Billion were funded to Indian startups from different investors. The businesses were able to grow a lot because of the funding they have received.

    So here are the Top 10  Funding rounds of 2019:-

    Zomato

    Zomato Founder

    Zomato is an Indian restaurant aggregator and food delivery startup.It was founded in 2008 by Deepindar Goyal and Pankaj Chaddah. It is known for providing information, menus, user-reviews of restaurants and food delivery options from the partner restaurants.

    Zomato has raised over $600 million of funding from Chinese investors Alibaba’s Ant Financial. The other important investors for Zomato are Infoedge, Temasek. Zomato’s valuation has crossed over $3 billion in the new funding round, as they have managed to raise over $2 billion in funding in the earlier part of 2019.

    Zomato has acquired the Indian operations of Uber Eats for around $350 million. Uber Eats is the food delivery biz run by Uber.

    Also read: Why Zomato Elevated Gaurav Gupta from COO to Co-Founder?

    Ola

    Ola Founder

    Ola has been the dominating player in the Indian-ride platform. It is a service that allows booking a range of cabs, bikes, rentals and other vehicles through a mobile app.

    Ola has raised a total of $3.8B in funding over 25 rounds. Ola has raised over  1 billion dollars in funding through seed funding in 2019 and the funding is provided by Tiger Global and Matrix India. It raised $250 million in funding from Softbank in JULY 2019.

    Also read: Success Story of Ola

    Paytm Mall

    After the successful e-wallet, paying bills, recharges, transferring money etc, PayTm introduced the Paytm Mall. It is a platform, where users can shop like any other e-commerce website or application. The user can sometimes get some extra benefits like cash backs,discounts, etc.

    Paytm mall finalized investment deals from eBay of $160 at a 5.5% stake, at a valuation of $3 Billion. The investment also allowed eBay to sell their inventory on the platform of the Paytm mall.

    Also read: List of Startups funded by Ratan Tata

    PolicyBazaar

    PolicyBazaar is an Indian insurance aggregator and global financial technology startups. It was founded in June 2008 by Yashish Dahiya, Alok Bansal and Avaneesh Nirjar. It is a digital platform where users can compare financial services from major insurance companies.

    In 2019, PolicyBazaar raised over $150 million in funding from Chinese Technology giant Tencent Holdings Pvt.Ltd. The funding will be used to start newer financial services verticals and to venture into newer segments’ financial services, which will be a mix of B2B as well as B2C businesses.

    Also read: Success Story of PolicyBazaar

    Cure.Fit

    Cure.fit is an Indian health and fitness company, which offers digital and offline experiences across various activities like fitness, nutrition, mental well-being and operates gyms under Cult.Fit and healthy food offerings under Eat.Fit.

    In 2019, Cure.fit raised a funding of over $75 million in April 2019 as a part of their round and then, further raised about $45 million dollars, making it a close of $120 million of funding for the company. The funding is a mix of both debt and equity funding and is led by Chiratae Ventures, Accel Partners, Kalaari Capital and Oaktree capital. Some new investors who also took part in the funding round are Kotak Mahindra Bank, Epiq Capital, Unilever Ventures and Innoven capital.

    BYJU’S

    Byju's Founder

    BYJU’S is one of the leading learning apps. It is the simple name of the brand “think and learn Pvt.ltd”. BYJU’S is a Banglore-based educational technology and online tutoring firm, which was founded in 2011 and gained its popularity in India. The founder of BYJU’S is  Byju Raveendran.

    In the year 2016, Byju’s became the first company in Asia to receive funding from  Chan-Zuckerberg Initiative, which is a joint initiative by  Facebook founder Mark Zuckerberg and his wife Priscilla Chan. By 2019, it has funded over $785 million by investors like Sequoia Capital India, Chan Zuckerberg Initiative, Tencent, Sofina, Lightspeed Venture Partners, etc. In 2019, it has collected funding over $540 million. Recently in January 2020, Byju’s raised $ 200 million from Tiger Global Management, after which the company was valued at $8 Million.  Again in February 2020, Byju’s confirmed raising another $200 Million from New York based private equity firm General Atlantic.

    Also read: Top Edtech Startups in India

    OYO

    Oyo Founder

    OYO is an Indian hotel chain startup. It is the world’s third-largest and fastest-growing hospitality chain of leased and franchised hotels, homes and a variety of living spaces. It was founded by the Ritesh Agarwal in 2013 and soon became one of the largest hotel chains in India. It has its services in cities of Malaysia, India, UAE, Nepal, China, Saudi Arabia, etc.

    OYO has existing investors like Softbank, with a capital of $800 million and in 2019, the founder Ritesh Agarwal has raised over $2.2 billion in debt from a series of Japanese institutions, including Nomura Holdings and Mizuho

    Swiggy

    Swiggy is also one of the largest and popular online food ordering platform in India. As of 2019, it has been operating in more than 100 cities. It was founded in 2014 by Nandan Reddy, Sriharsha Majety and Rahul Jaimini. The services include restaurant search, online ordering and table reservations.

    In 2019 , Swiggy raised over $1 billion in fresh capital which made it the biggest funding in India’s food-tech sector. The existing investors on Swiggy are DTS Global, China’s Meituan Dianping and Coatue Management and the new investors are Hillhouse Capital and Wellington Management CO. Swiggy raised over $2 million investment from Accel and SAIF partners in 2015, after their launch.

    Also read: List of Food Tech startups in India

    Razorpay

    Razorpay is an online payment solution that enables Indian Businesses to accept, process and also arrange payments. It is known as the best payment gateway app in India. It grants access to multiple modes of payments including credit card, debit card, online banking, unified payments interface, etc.

    Razopay has raised over $75 million dollars in 2019, in the latest round of equity financing which has led by financial technology-focused investment firm Ribbit Capital. Reportedly, Razorpay also managed to raise $450 million in funding from marquee venture capital firm Sequoia Capital, disclosed by a close source.

    Snapdeal

    Snapdeal is an Indian e-commerce company, known for selling over 3 million products from 800+ categories from over 1,25,000 regional, national and international brands and retailers and has a reach in more than 6,000 towns and cities across the countries.

    In 2019, Snapdeal raised over $1.8 billion in funding ad has been backed by investors like Alibaba, Foxconn, and Softbank.

    Also read: Top Entrepreneurs of India

    Conclusion

    2019 has been a very smooth and fast year for many startups while others were struggling hard. We hear the news about funding each and every day, which we even cover on StartupTalky’s social media handles. Funding has helped a lot to these companies to evolve and help the country to grow this year.

    If you know any other startup which was funded in 2019, do let us know in the comments.

  • Raise Startup Funding without Losing Equity

    No shocker here: Money is the bloodline of any business. As a startup every business needs access to capital, whether for product development, renting office or inventor and hiring the first staff. But lack of funding is one of the biggest challenges among many others which a startup founder has to face. Once an entrepreneur has idea, they look for angel investment as the primary source of investment. However, this is one of the last things he/she should try. Raising fund for startup is frustrating and time consuming. Even if you’re lucky enough to raise a round, you risk losing control in your own company by sharing equity with the investors.
    Here we present you a comprehensive guide that lists 10 funding options for startups that will help you raise capital for your business without losing equity.

    It all starts with you: Personal Financing

    Starting a business is risky, and in many cases this level of risk is what prevents traditional lenders to finance entrepreneurs. This is made even more difficult if the startup owner hasn’t invested any of his or her own money. In the idea/experimental stage, you can use your own financial resources, such as money from a savings account or careful use of personal credit cards. If possible try to sell products and services to generate some to keep going form start. This method also validates the idea that there is a need of your product in the market and people are ready to pay for it.

    If you have savings or own your home and are willing to refinance or take out a second mortgage, then these are options you should definitely explore if you’re comfortable with the potentially bad consequences.

    Friends and Family

    It’s often said that you should never go into business with family, but that doesn’t mean you can’t borrow money from them, right? If you don’t have your own savings or credit cards – or you do, but your growing business needs additional funding – all is not lost.Yourfriends and family have a vested, personal interest in watching you succeed. This might make them more willing to invest in your business, especially in the beginning. Consider inviting family and friends to invest in the company with the understanding that their money may not be returned.
    This is also a smart way to raise fund as unlike institutional investors it’s easy to convince them and there is not much song and dance involved in getting the fund. In most cases, these friends and family are investing in you, not your business. Both parties should think of this investment as a grant with no strings attached. If the enterprise succeeds, a reward to these risk-takers would be a nice gesture. Taking money from friends and family, however, can be tricky, and all of the pros and cons should be scrutinized before deciding to use this method to generate funds.

    Crowdfunding

    A similar method as P2P, crowdfunding help you to get people to invest in “your solution” in exchange for some rewards (other than money). Currently, it’s one of the most popular way to get funds as the money is not repaid. The rewards for donors range from receiving your first products to having a product named after them. Crowdfunding is very emotional and its success is based on the appeal of your idea. Popular sites that facilitate crowdfunding are Kickstarter and Ketto. Each site has its own pros and cons so before associated with one better investigate.

    Loans

    Getting a loan for a young startup that has not launched yet is near impossible, unless you have the collateral (personal assets) to assure the bank that they will not go empty handed when you default on your loan. This is definitely the most unpopular choice among Startups. This does not, however, mean that you are out of options to fund the growth of your company.

    Start a side project

    Although this is not a very good idea to do. But this is what the founders of AirBnB were in a similar position in the early months of their startup. They had a bit of cash coming in, but not enough to sustain themselves. Their backs were against the wall. They started brainstorming ideas to bring in extra income during the Democratic National Convention. What did they come up with?

    Obama’s and Captain McCain’s Breakfast Cereal

    They hustled. That breakfast cereal idea brought in an extra $30,000 in needed cash and helped build a company worth over a billion dollars.

    Product Pre-Sales

    If your business is based purely on the selling of a single product, the easiest way to raise the money to produce the product may be to pre-sell it. By pre-selling your products, you can be sure not to make too many and have a warehouse of unsold goods. It also keeps you aware that there are consumers relying on you to follow through.
    This level of pressure can be a little intimidating for some entrepreneurs, so take time to consider the ramifications of collecting money before providing a product. You will need to have a solid timeline in place and adhere to it. Otherwise, customers might demand their money back, which could lead to a variety of problems.

    Micro Financing

    In this small loans up to $10,000 are granted by institutional to individual who would not normally qualify for a traditional bank loan. Loans are based on your experience, passion, market opportunity and sales. Organizations include Accion USA, Grameen Bank and Kiva. Remember: It is a good alternative if you have an appealing idea and need a small about of money.

    Business plan competitions or other contests

    When all else fails, try to win the money! There are a lot of regional and national level competitions giving away substantial amounts of money. There are numerous hackathons, business plan contests, and relevant awards for small businesses and startups around the country. The trick is to find the one that makes sense for your business. There may be specific contests for your alma mater, city, or state. Check your school’s center of business or entrepreneurship or your city/state economic development center to see if there’s a contest right for you.
    Remember: This is really show business that loves a great idea and very competent team. You also need to be a good presenter.

    Believe it or not, there are organizations out there that offer monetary rewards—or even financing—for businesses and entrepreneurs who enter some contests. Eligibility requirements, entry fees and judging criteria vary widely. But if you have confidence in your idea and your pitch, this might be the way to get some cash.

    Peer to peer lending (P2P)

    It is now possible to go online and get funding from people you do not know at sites such as Prosper.com and Lending Club. The amount paid for the loan depends on your credit score, the economy, the length of the loan and “yourstory.”
    Remember:P2P loans are not easy to get and the interest rates can be very high.

    Factoring

    This method allows you to sell your accounts receivable to a third party (i.e.The Receivables Exchange) for immediate cash. It’s a $150 billion industry and goes back to the ancient time of Babylonia. Remember: Factoring is expensive since it can cost upto 15% of the receivable. This may work for a growing company, but is not a method of financing for a company that is shrinking or losing money.

    Purchase Order Financing

    Many different factors can affect business’s cash flow, including seasonality and supply and demand. For example, some companies may find themselves unable to fulfill a large order due to a lack of funds to purchase the materials needed to produce the goods. In these instances, purchase order financing might be the answer.

    A purchase order financing organization will essentially extend an advance so the organization can purchase the materials it needs today and then collect back the money once the goods are sold. Companies that most often qualify for purchase order financing are those that deal in manufactured goods—not services—and that stand to make a margin of 20% or more on the sale.

    So, this was out list on how to raise money without losing Equity. However, Money shouldn’t be an objection when you’re starting a company. Be creative. Use your resources and do things that don’t scale.

  • List of 11 Best Crowdfunding Platforms for Startups

    Crowdfunding is all about creating a community around your project. A community that funds the project and also helps in spreading the word about your project. It’s all about asking for small amounts of money from many people instead of finding that one or two people to cut you a large cheque.

    The process of crowdfunding works on the accessibility of vast network of people which is easily available on the platform of the internet. There are many crowdfunding websites that can bring investors and entrepreneurs together and can help them raise or increase their funds that goes beyond the traditional circle of owners, relatives and venture capitalists.

    Crowdfunding provides an opportunity to anyone with an idea to pitch it in front of waiting investors. Investors can select anyone from hundreds of projects and invest amounts that are little and large, as per their wish. Crowdfunding sites then generate revenue from a percentage of the funds raised and help innovators launch their ideas, help them in bringing a change and provide incentive to operate.

    Nonprofit organisations use crowdfunding platforms to gather donations. They often refer to crowdfunding as “online donations or fundraising,” “social media fundraising” or “peer-to-peer fundraising”.

    How crowdfunding works in India to raise funding for startup
    The concept of crowdfunding has just started to gain momentum in India.‘Funding’ is the first problem new people, entering the world of business forfirst time, find it difficult. Startups have to turn to institutions and angelinvestors because there is lack of funds for bootstrapping or lack of h…
    StartupTalkyAshwini

    Here are 11 crowdfunding sites in India for startups  that are shaping the way ideas and startups grow:

    Kickstarter

    Kickstarter Logo | Crowdfunding Platforms for Startups

    Kickstarter is one of the most well-known name in crowdfunding and arguable the most active platform as well. It has raised over $2 billion since its launch in 2009. Kickstarter backs creative projects like film, music, games, technology, books, research, etc. Since our launch, on April 28, 2009, 17 million people have backed a project, $4.5 billion has been pledged, and 168,500 projects have been successfully funded.

    The platform doesn’t accept humanitarian projects or charity or other personal use projects. Kickstarter charges a fee of 5% for every successfully funded campaign. The purpose of Kickstarter is to bring creative projects to life by focusing on the creativity and merchandising. But if you are not able to reach the target in the allotted time, you will not be assessed any receivables or fees in any payment.

    Campaign type Reward
    Industry focus Creative arts
    Funds you can keep All or nothing
    Funding fees 5% of successful campaigns
    Payment fees (US) 3% + $0.20 per pledge $10 and over; 5% + $0.05 per pledge under $10
    Startup locations allowed US, UK, Canada, Australia, New Zealand, and the Netherlands

    Milaap

    Milaap | Crowdfunding Platforms for Startups

    Milaap is one of the most popular crowdfunding platform among Indians. Most of the people achieve their donation target on this platform. Although, maximum number of campaigns are for raising funding for health causes but many student entrepreneurs have successfully raised money to fund their startup ideas. The platform has raised over INR 330 Crore to support more than 100,000 people across the country.

    Campaign type Reward, Donation
    Industry focus Health and Startups
    Funds you can keep All
    Funding fees 5% of total funding

    Also Read: 4 Practical Tips to Attract Investors- How to get Investors

    GoFundMe

    GoFundMe Logo | Crowdfunding sites in india for startups
    GoFundMe Logo | Crowdfunding Platforms for Startups

    GoFundMe is a donation crowdfunding site where people have raised an amount of more than $5 billion. The platform is entirely backed by donations and does not charge success fees. Since there is a huge audience over this platform, getting your startup funding campaign noticed is quite difficult. And projects also typically have lower dollar amounts. But the businesses which are important to their communities are often able to raise funds successfully.

    GoFundMe does not charge any fees for the funds you raise and the money doesn’t have to be paid back. You are only responsible for the fees charged by the payment processor which is around 2.9% only.

    Campaign type Reward, Donation
    Industry focus People and Causes
    Funds you can keep Whatever you raise
    Funding fees 0% for personal campaigns in the US; 5% for charities and countries outside the US
    Payment fees (US) 2.9% + $0.30 per transaction
    Startup locations allowed 19 countries

    Indiegogo

    Indiegogo Logo | Crowdfunding Platforms for Startups in India
    Indiegogo Logo | Crowdfunding Platforms for Startups in India

    Indiegogo was the first major crowdfunding platform that has raised over $1 billion since its release in 2007. The platform funded over 1,75,000 campaigns with contributions from 2.5 million across the globe in 2015. It is a crowdfunding site and also a marketplace platform. The campaigners can raise funds and continue raising funds pertaining to their idea as the site offers a “flexible funding” option.

    The campaigners can also sell their products directly to the Indiegogo network of consumers. The platform focuses on product innovation and bringing innovative ideas to life. Indiegogo also has no prohibition against cause-related humanitarian projects. The site continues to serve as a Launchpad for entrepreneurial ideas.

    Campaign type Reward, equity
    Industry focus Tech and innovation
    Funds you can keep All or nothing; whatever you raise
    Funding fees 5%
    Payment fees (US) 3% + $0.30 per transaction; $25 transfer fee
    Startup locations allowed Worldwide

    Also Read: How to Raise Fund for Startup in India

    Ketto

    Ketto Logo | Crowdfunding Platforms for Startups

    Ketto is a crowdfunding platform that allows people and non-governmental organizations to raise money for their creative, social and personal causes. From 2012 to 2019, 500 crore was raised on the platform for over 1.5 Lakh campaigns and 25 Lakhs donors. The platform includes and features campaigns for health care, startups, education, personal campaigns, sports, children and women empowerment, animal welfare and alike causes.

    Ketto also provides a section on its website called “Urgently Fund Required” and campaigns that can provide “Tax Benefit” to donors. The Kerala flood project called “Two Wheels of Hope” was a successfully funded campaign that was featured on Ketto and it provided cycles for schoolgirls, among other campaigns. The purpose of the platform is to being social change, raise awareness and of course raise funds.

    Campaign type Reward
    Industry focus Creative, Entrepreneurial, NGOs, Personal Causes, Education
    Funds you can keep Whatever you raise
    Funding fees Not Available
    Payment fees 10.62% for NGOs or 9.44% for individuals
    Startup locations allowed India

    Also Read: Funded Indian Startups with Investors (2020)

    CircleUp

    CircleUp Logo | Crowdfunding Platforms for Startups

    CircleUp is an equity-based crowdfunding company that is designed to help emerging brands and startups raise capital and grow their business. CircleUp, since its release in 2011, has helped 211 entrepreneurs raise $305 million, its average investment being $100,000. The site has a good reputation for elaborate due diligence on the companies it accepts.

    Most of its investors have a deep experience in the field of retail and consumer brands and are willing to provide strategic guidance and support during the process. And hence, CircleUp is best for CPG focused businesses. It offers a line of credit up to $3 million with APRs ranging from 14-25% including all feels. This is still lower than most other online lending options. The fees that you will pay for equity crowdfunding will depend upon your business and will be determined by CircleUp at the time you apply.

    Raise money with CircleUp and you can connect with experienced, knowledgeable investors in your industry, who can potentially help you grow your company faster and provide one-on-one guidance. You also get access to CircleUp’s network of operational partners, like Johnson & Johnson and eBay, who can share business expertise and potentially help with product development and manufacturing.

    Campaign type Equity, Credit
    Industry focus Early-stage Consumer Brands
    Funds you can keep All or nothing
    Funding fees Not available
    Payment fees (US) Not available
    Startup locations allowed Worldwide

    Also Read: Top Funded Startups India 2019

    Patreon

    Patreon Logo | Crowdfunding Platforms for Startups

    Patreon is a crowdfunding membership platform that provides creators business tools to run a subscription content service and has raised more than $350 million. The artists build relationships and provide exclusive experiences to their subscribers called “patrons”. It offers fundraising on an ongoing basis. The majority of the businesses on Patreon produces some form of entertainment.

    Patreon is best for people indulged in creative businesses like creative projects like video and photography, music, writing, comics, podcasts, games, animation, vlogging, artists and other entertainment where content is produced on a regular basis. Patreon charges a fee of 5% for any payment made to the creator through its platform and typically around 3% transfer fee when you withdraw funds. The startups can use this platform to provide the access to their particular content & services.

    Campaign type Reward, subscription/donation
    Industry focus Artists and Creators
    Funds you can keep Whatever you raise
    Funding fees 5% of successfully processed payments
    Payment fees (US) Varies, but 5% on average
    Startup locations allowed Worldwide

    Wishberry

    Wishberry Logo | Crowdfunding Platforms for Startups

    Wishberry is India’s largest crowdfunding platform that was launched in 2012 and has a 70% success rate for creative projects. The platform is strictly for creative projects including ideas and startups related to arts & design, film & other video, music, dance, theatre, publishing, comics, photography and also support the creative startups.

    Wishberry does not accept any product-based projects right now such as hardware products, IoT products, non tech products like fashion etc. Its purpose is to bring creative and innovative idea to life and build a community of donors for creative ideas, consulting and marketing services as well. Wishberry is a reward-based platform from the projects that they fund. They also provide personal consultation, social media management, PR & publicity, email marketing, global payments.

    Campaign type Reward
    Industry focus Creative projects
    Funds you can keep All
    Funding fees Rs. 3499 for less than 2 lakhs, Rs. 9999 for more than 2 lakhs, Rs. 2499 for student campaign
    Payment fees 10% From funds raised, upon campaign’s success
    Startup locations allowed India

    Also read: List of Startups funded by Ratan Tata

    FuelADream

    Fueladream | Crowdfunding Platforms for Startups

    FuelADream is an online crowdfunding website that helps you raise funds for startup ideas, charities, social causes and disaster relief efforts. The platform is committed to radically changing the lives of 2.2 billion people in India and Africa. It gives campaigners the choice of AON i.e. All Or Nothing and KWYG i.e. Keep What You Get and believes in the motto – “quality more than quantity”.

    FuelADream keeps the number of projects less in order to keep the authenticity and genuineness of the campaigns posted on the platform. They provide a section called “Crowd Favorite” lists and that includes the most-liked and most-funded campaigns. The platform focuses on community-led activities and creative ideas and aims to change the traditional methods of raising funds and simplifying the process.

    Campaign type Reward
    Industry focus Creative Ideas, Causes, Charities, Events, and Community-led Activities
    Funds you can keep All or Nothing and Keep What You Get
    Funding fees Rs. 3000
    Payment fees 6% to 9% from funds raised
    Startup locations allowed India and Africa

    Fundable

    Fundable Logo | Crowdfunding Platforms for Startups

    Fundable is a fee-based crowdfunding platform that offers the users both reward-based and equity-based campaigns for their startups. The focus is on small businesses and entrepreneurs. It deals with campaigns across all business sectors in India. Entrepreneurs and businesses across India have used this platform to raise funds for affordable clinical diagnoses to intellectual travel experiences.

    The various sectors included in its domain are banking, food and beverage, travel, and fitness. Fundable also provides a section on its websites called “New and Noteworthy” that ensures that people who want to support can browse through the newest and most engaging campaigns. Fundable does not charge any kind of success fees. It’s simply a flat monthly charge per month.

    Campaign type Reward and Equity
    Industry focus Small Businesses
    Funds you can keep Whatever you raise
    Funding fees $179 per Month to Fundraise
    Payment fees 0%
    Startup locations allowed United States of America

    Also read:Top Entrepreneurs of India

    Catapooolt

    Catapooolt | Crowdfunding Platforms for Startups

    Catapooolt is India’s first ever crowdfunding platform. Catapooolt is a platform for funding personal projects like art startups, films, music, art and technology, or enterprises and businesses. It gives additional feature to its campaigners to partner within their network of investors, accelerators, incubators, mentors, and for marketing, sales and distribution community endorsements.

    Catapooolt will bring together communities, relevant partners, latest tools and resources to enable what every idea needs to be successful – Funds and Engagement. The platform becomes a comprehensive ecosystem for crowdfunding by focusing on individual projects, startups and enterprises.

    Campaign type Reward
    Industry focus Individual Projects, Startups, Enterprises
    Funds you can keep Whatever you raise
    Funding fees Not Available
    Payment fees 10% + 18% of 10% (GST)
    Startup locations allowed India

    Great innovation and ideas need a boost with funding for their startups. And with these great crowdfunding websites available to us at these times, founders and innovators have a range of options to choose from.

    Also check out: Success story of Impactguru – Healthcare Crowdfunding Platform

    Please share more crowdfunding platforms for startups in India if we missed any of them. Lets make the strongest community of entrepreneur by helping each other.

  • Startup Funding | Merits and Demerits

    People have been looking for ways of on how they can empower themselves economically. One  of the ways is through entering into a business world but demands involved in starting one overwhelms them. When opening a new business, there are a couple of things and has a financial implication.

    Setting up the area and make it functional requires a lot of funds. This is where startups look for the option of outsourcing the funds. There are pros and cons attached to the idea of Startup Funding as highlighted below.

    Merits of getting Startup Funding

    Easy access to business capital

    There are those financial institutions that their major role is to fund businesses. This includes investors and loans from the bank. Acquiring of capital can be based on the size of the business you want to venture into. The institutions give a certain period of time for loan repayment. If the business makes a profit then you are able to repay their loan within the stipulated period.

    Brings experts on board

    One of the advantages of Startup Funding is that you get to meet to get expertise. They offer technical skills that can be helpful to your business. Before and after receiving the funds they are always on the ground to check on the progress. Their aim is to see your business grow and free from any risks that might attack. Consultation about business ideas and any other advice can be done anytime. Better decisions are therefore made.

    Additional benefits

    Startup Funding sources support business in the legal matter. Investors would like you to comply with the law of the land so that their business is not also put into a risk. This ensures business compliance.

    Networks and linkages

    Startup Funding attracts a lot of investors. Investors expose you to the external market world. More clients through referral can be obtained. The network creates an opportunity to meet people with brilliant ideas that are ready and willing to transfer the same skills for the help of your business.

    Demerits of getting Startup Funding

    External control

    Be assured that every single cent you get from investors will be controlled by them. No investor would like to lose money, therefore, they have to monitor. Investors will always have a say in your business. Depending on the cash obtained from them, this determines their percentage of say in your business.

    Minimal business ownership

    Remember the capital of the business belongs to the investors. Therefore management of the business will be partially owned by them. At some point, they dictate what you do. No
    ownership until you completes repaying their money.

    Time wastage

    Looking for sources of Startup Funding might take quite a lot of time because of the processes and procedures involved. Running up and down is a very tedious exercise. A lot of time is wasted chasing for money that would otherwise be spend sourcing for customers and getting to understand their needs. In bootstrapping time is spent wisely sourcing and familiarizing with customers or analyzing market trend around your business area so as to boost business profit.

    Burden to agreements

    Every penny that you receive from an investor must be refunded. Before they give you cash, they subject you to signing a lot of papers to lay down procedures for repayment. Signatures should be appended to show that you are complying with the terms and conditions of the funding. Failure to adhere to them can lead to unfriendly penalties

    Some advice is given not viable

    Not every idea that you get from investors is worth. Most of the time they give you ideas to favour their business and not yours. You should be wise enough before implementing.

    Conclusion

    Investors can help boost your business idea but it is not a guarantee that you will succeed.
    Before Starting a business, it is always important to analyze and get safe ways of getting Startup Funding so you don’t get into trouble.