As of June 2022, over 70k+ startups in India are recognized by the DPIIT. India is the third largest ecosystem for startups. If you want to have a startup of your own, then there is no time like now.
Having a startup is just as exciting as it can be intimidating. As a startupper, there are many steps before getting the show on the road like market research, acquiring startup funding, etc.
One of the biggest obstacles in the way is how to get startup funding in India? Today we will look at various ways in which you can raise startup funding and make your dreams come to reality.
The Government of India strives to create a supportive environment for startups. And hence, they have launched several schemes that can help your startups. There are various loans SMEs and MSMEs can avail like Make in India, MUDRA, Start-up India, Stand-up India, Atal Innovation Mission, etc.
These loan schemes promote India’s economic and social development, encompassing the growth of educated youth, rural India, new entrepreneurs, and women business owners.
The name angel investors are indicative of what it means. Angel investors are individuals who want to invest in new startups. They invest in your startup as their aim is to reap profits from the investments they make in your company. The risk involved in these investments may be higher than going for government schemes or other institutions like banks or so.
Some of the popular angel investors in India are Indian Angel Network, Hyderabad Angels, Mumbai Angels, Venture Catalysts, and Lead Angels Network. Startup owners can directly contact these investors and pitch their startup ideas to receive funding from them.
Small Business Loans
Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) are good ways to get a loan. You can opt for this method if you don’t have a financial history or credit score, making it tough to secure loans from public or private sector banks.
These NBFCs and MFIs give loans at higher interest rates compared to public and private sector banks when you don’t have a credit score or a financial history.
In this method, there are no intermediaries involved. The lenders lend their money to the borrowers as an investment, and then the borrowers return the money at a higher interest rate than NBFCs and MFIs.
The peer-to-peer lending institutions are regulated by the RBI so that both the lenders and borrowers can benefit from the arrangement. It acts as a loan as well as an investment, which means it is a loan for the borrower for their startup funding, and it acts as an investment for the lender.
Here, startup funding is collected from multiple investors on social networking sites or other platforms. Crowdfunding can be done for various purposes like charities, disaster relief events, and so on. Fundable, FuelADream, and Indiegogo are some of the famous crowdfunding platforms.
So, these are some of the ways in which you can get startup funding in India. If you want to start your business, you can opt for any method that suits you. Now, you can focus on other steps involved in starting a business rather than wondering about where you could get funding to kickstart your dream.