Growth of Crowdfunding in India

Growth of Crowdfunding in India

Know The Immense Growth Of Crowdfunding In India

With the recent rise of crowdfunding, the government is doing its part. The Securities and Exchange Board of India (SEBI) has issued a consultation paper on fundraising. In 2016, the SEBI made it clear that the platform would be subject to its own regulations. In addition, the SEBI has urged investors to be cautious in investing in the fundraising market. If the platform reaches 200 investors, it may start acting like a stock exchange.

Although crowdfunding has been around for years in the western world, it is a relatively new concept in India. It is the process of raising small amounts of money from a large group of people, usually through the internet. The idea behind fundraising is that entrepreneurs can share their pitches with a broad audience. Here are some of the most critical aspects of the growth of fundraising in India: The first step is to understand the concept and the benefits it offers to entrepreneurs.

Growth Of Crowdfunding In India

Although equity crowdfunding is not allowed in India, other forms of fundraising are growing in popularity. Its key advantages include storytelling, technology, communication, and consumer behaviour. In India, the fundraising scene is minimal, but the early success stories of the modern-day version of the model indicate there is a largely untapped market. In addition to these early successes, the future of Indian fundraising is bright. It will be interesting to see how this technology evolves as the country grows.

A World Bank report notes that crowdfunding is already a multibillion-dollar industry proliferating in India. And as a result, fundraising has become a viable option for young Indians to pursue education. The government has recently passed laws to facilitate the process. With the support of fundraisers, fundraising in India is gaining momentum, particularly in the start-up and small business sectors.

The growth of crowdfunding in India is evident in the success of an 11-year-old Hyderabad girl who sought donations to provide ration kits for daily wage workers. Using fundraising platforms such as Facebook and Twitter, she raised Rs800,000 from people all over the world. Despite its high level of success, there are still many challenges ahead. The market for the technology in India is large enough to support a growing number of different types of business.

The Covid-19 pandemic has accelerated the growth of crowdfunding in India. In fact, a recent study found that close to two million people used the internet to fund social projects. As a result, these initiatives have helped hundreds of thousands of Indians in need. The growth of crowdfunding in India has increased the participation of the poor, and many people have already taken advantage of the opportunity.

The growth of crowdfunding in India has accelerated the development of start-ups and charities. In the past, the Covid-19 pandemic has generated a massive wave of donations and online fundraising. ACT Grants and GiveIndia, two start-up ecosystems in India, have partnered to launch these services. These organizations are claiming to have saved more than 140 million lives. These organizations are also helping the environment by promoting entrepreneurship.

The growth of fundraising in India is a prime example of the success of fundraising in Asia. Besides, the country is also in the process of regulating fundraising in the country. While the securities and banking regulators have published consultation papers about fundraising in India, they have failed to control the activity and create a regulatory framework to protect citizens. There is no reason for the government not to take a step in this regard.

EndNote

Despite the changing regulations in the United States and the U.K., fundraising in India is a growing sector. As of 2013, the global market for fundraising services was worth US$ 1.4 billion. In 2016, there were 10 fundraising platforms in India. And, ONPASSIVE’s O-Bless is one of the best and unique platforms where you can fund and run campaigns to serve the need. 

The growth of crowdfunding in India has continued to accelerate with the launch of several successful campaigns on various social media. In the U.S., there are many examples of thriving businesses.