India’s top crowdfunding platforms

Crowdfunding Platforms in India reviewed in detail. Here on this article, various crowdfunding platforms will be compared. Please read more bout the crowdfunding legal implication here.

Top 10 Crowdfunding websites in India

The process of raising funds for an establishment through small contributions by a large amount of public is called crowdsourcing or crowdfunding. Here, a lot of people contributes relatively a small amount to raise a large sum that is beneficial for the venture. $ 34.4 billion capital was generated by the crowd globally the previous year, however, these figures are not available for India. Despite local crowdfunding platforms is being backed by several firms & people. Well, today India is the second largest global market for internet users estimating about 342 million smartphone users, with online payment facilities and services making the transactions easier. According to the Bloomberg report, the uneducated farmers were taught about crowd funding through online resources which resulted in an appraisal of 300,000 rupees from about 100 such farmers for development of benevolent infrastructure. It is highly recommended to know how crowdfunding works.

You can start a crowdfunding campaign here.

The best Crowdfunding India Platform

Founders: Mayukh Choudhury & Anoj

Milaap is another Bangalore-based firm which was founded in 2011. As mentioned earlier, Milaap has helped in rural regions of India, in order to help low-income borrowers, for education, water, electricity & hygiene.

Milaap allows donations & micro-lending for all the emergencies, social help like medical causes, natural disasters & small entrepreneurial projects since in 2014 it added donations to its portfolio.

The reach of Milaap is worldwide with contributors from over 120 countries for about 50000 projects with an appraisal of about $12.7 million.

A commission of 5% to 8% is charged from the borrowers.

 Crowdfunding India

Due to lack of experience, knowledge & practice, in India crowd funding is restricted to giving loans & donations as acclaimed by the Securities & Exchange board of India. It has defocused the regulatory framework for investment & kept equity crowdfunding has been kept on hold.  

Until now the biggest raiser is a Bangalore-based firm called Milaap which has managed to bring about $12.7 million from a wide array of 50000 projects, resulting in a mere average of $260 from one project. These projects have been beneficial for people dwelling in rural areas, poverty-stricken individual & lower strata of the society. There are many other platforms but they aren’t established well for the smaller communities and are mainly focussed on the creative arts. Certainly, they also do no good to the entrepreneurs.

The list below contains essential information about India’s peer to peer crowd-sourcing online firms which have brought some impact in this field.

How to create a fundraising page.

  • Rang De:

Founders: Smita Ram & Ram N.K

RangDe.org was established in 2008, in Bangalore. It is an online peer to peer microlending firm mainly focussing on low-cost loans for the development of ventures by rural entrepreneurs. Its services extend throughout the nation with the help of a large number of funders. The most striking aspect is that it is prominent among the women as its 93% borrowers were women.

Rang De is a non-profit organization, bringing around 9699 web investors & has contributed about 50008 loans, which elsewhere were ignored by formal banking & financial institutions. Raising about $ 7 million through social investments, the firm has also managed to repay about $ 5million. Interests rates of about 4.5% to 10% are paid by the borrowers on the free loans & nominal cut of 2% on all loans are received by the firm upon the repayment of all the loans by the borrowers.

World Bank, a part of the United Nations has funded Rang De via (DM), which abbreviates to Development Marketplace which is also a winner of several social change related awards inclusive of South Asian International Fund Raising Group’s Fundraising Campaign of the year Award and 2013 Millennium Alliance Award.

With a network of 25 field partners within 16 Indian states, arrears stricken borrowers are contacted by them to take the money to the borrowers.

Also, you can look into super powerful marketing tips to boost your fundraising campaigns.

  • Faircent:

Founders: Rajat Gandhi, Vinay Matthews, Nitin Gupta

Faircent is a Gurgaon based peer to peer lending establishment, & a platform where direct interaction can take place between borrowers & lenders without any interference by the banks. Borrowers & lenders have the freedom to discuss, finalize & negotiate the interest rate & duration of the loan resulting in minimizing the high margins of the rate on the loans & thus keeping the institutional charges low.

Faircent is charging a one-time listing fee of $23 with an additional administration fee varying with respect to the size of the loan. Having about 6000 lenders & 26000 prospective borrowers, it has sanctioned total loans worth $973000 in a span of 2 years.

  • Ketto:

Founders: Kunal Kapoor, Varun Sheth & Zaheer Adenwala

Ketto was established in Mumbai in the year 2012. It provides fundraising options from three main aspects.

  • Community/Social projects (Non-governmental-organisation/Non-profits/Charities & donations)
  • Creative Arts (Movies/Music/Theatre/Fashion/Technology)

Personal Development (Health/Education/Travel)

Ketto has taken a Corporate & Social responsibility to extend its support & transforming itself into an e-commerce tool for the NGOs to use.

A unique cash pick-up facility is offered by Ketto, which charges a fee of $30 or at a rate of 5%-8% besides the gateway charge payments.

Despite falling below, the project target set, project establishes keep all the money that is raised. Ketto has raised about, $5990400 with the support of more than 100000 investors across 10000 projects with an average of $600 per project.

  • Wishberry:

Founders: Priyanka Agarwal & Anshulika Dubey

This is another Mumbai-based crowdfunding platform established in 2010. This establishment expertise in funding projects related to music, arts, film, photography, dance, design, fashion etc.

To every project an appointment called, ‘Campaign Coach’ is allotted who is the principle advisor to the project creators which helps in writing an effective script, creative video, & management of logistics & distribution of rewards. The borrowers have achieved the success rates as high as 70%.

Besides charging a 10% commission the firm also charges a non-refundable fee of $52.5. The previous commission is not charged if the required goal is not achieved. Secondly, Wishberry also provides a digital marketing & Public Relation services at a fee that is charged on monthly basis.

The striking feature of the firm is that it functions on a policy called “All or Nothing”, giving fundraisers a target period of 60 days to achieve their goal.

  • FuelADream

Founders: Ranganath Thota

FuelADream is also a Bangalore-based firm which was recently launched in April 2016, hence completing 14 projects. Like Wishberry, FuelADream also works for social causes, creative arts projects & charities.

Its campaign includes,

  • AON (All or Nothing): If the target is not achieved then all the money is returned to the investors.
  • KWYG (Keep What You Get): The borrower accepts whatever he receives.

Having its own content & marketing team, FuelADream helps you to accumulate the online funds & design the reward systems for every project. 9% charge is levied, & there is government tax of 14.5% charged.

FuelADream has achieved a lot in the short term, as it prefers quality before quantity. It has restricted itself to a meager 20 projects a month. Some campaigns worth mentioning are, a battery powered e-bike & a canal system for easy irrigation in the arid region.

  • Catapooolt:

Founders: Satish Kataria

Catapooolt has achieved a lot, including the likes of Parallel Cinema, DJS Racing Car, political party AAP etc. Catapooolt

Was founded in July 2013 & has worked for over 40 projects, raising about $150000, with the support of more than 200o contributions.

Catapooolt has a unique three-tier system of rewarding to its funders. Catapooolt also claims to be the sole firm giving its funders access to vivid distribution at about 300000 retailers. A fee of $23 is charged upon the submission of the project.  

  • BitGiving:

Founder: Ishita Anand

BitGiving is a New-Delhi based firm whose headquarters are located in New Delhi. It gives an opportunity to all the artists, engineers & creators of all types to gather & raise funds for business & social projects. Here about 15% of firms are raised for medical treatments.

BitGiving has done tons for social causes & some of the works worth mentioning include:

  • Aiding Nepal to recover after the disastrous earthquake.
  • Fundraising for sending an athlete to the Olympics.
  • Medical treatment to a teenager for a rare disease.
  • Project to help farm widows in the Marathwada district.

BitGiving has charged commission at a rate of 6% to 10% depending upon the amount funded and various other factors.   The funders are rewarded through virtual schemes such as social media shout outs, VIP passes, pre-orders etc.

  • Crowdera:

Founders: Chet Jain, Chaitanya Atreya, Rich Mastuura

In the following list, this is the only firm founded abroad in California. It launched its services in India in 2016.

Some friends have funded this platform & one of their co-founders Rich Mastuura. The entire team aims monetising after the start of 2017 through activities involving CSR.

The most appealing feature of this firm is that it does not charge any commission as it staunchly adheres to its motto of ‘Doing good must not be penalized’.

Founders: Mayukh Choudhury & Anoj

Milaap is another Bangalore-based firm which was founded in 2011. As mentioned earlier, Milaap has helped in rural regions of India, in order to help low-income borrowers, for education, water, electricity & hygiene.

Milaap allows donations & micro-lending for all the emergencies, social help like medical causes, natural disasters & small entrepreneurial projects since in 2014 it added donations to its portfolio.

The reach of Milaap is worldwide with contributors from over 120 countries for about 50000 projects with an appraisal of about $12.7 million.

A commission of 5% to 8% is charged from the borrowers.

  • Impact Guru

Founders: Khushboo Jain & Piyush Jain

Impact Guru evolved from the Havard based iLab finetech platform in 2014 at Mumbai.

It is no different from a normal fundraising firm which helps individuals in non-profit projects, social establishments, startups, corporate funding etc.

In April, it was successful in raising about $500000 from a Singaporean venture capital firm named RB investments & also from some private investment platforms like Fundnel. The previous year, it has raised a capital of $8.5 million.

Impact Guru has benefitted more than 100 causes & establishments from several nations through its campaigns. Although one can launch a campaign for free, but a 5% surcharge is levied if the launcher chooses the default option.

Coming to a conclusion, India is gifted by this system of crowdsourcing as it has aided in several social projects. But there is still much for India left to achieve in this field as India is potential to launch more such campaigns & has the potential to adapt such innovations for mutual benefit. Hope these crowdfunding platforms will make a difference.

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