There are many benefits of crowdfunding for small businesses and entrepreneurs. It allows people to help new businesses succeed, but it also has a huge network of donors who support projects worldwide.
So, which are the different crowdfunding platforms in India to use? If you're looking to raise money for a good cause, you might consider the following most popular crowdfunding site in India. Go through the features and offerings and decide which one suits you the best.
Did You know?
If you add personal information, you can get more backers by 79%. Yes, according to a psychological study, they identified after looking at the donations on the basis of how much information was provided by potential donors regarding the funds of the recoupment in the campaign. Surprisingly, a campaign that provided the name, age and pic of the recipient got 79% more backers in comparison to the campaign with the unidentified recipient.
What Are Crowdfunding Platforms?
The concept of crowdfunding is not new. It started as a trend in Western markets and is now mainstream, especially for startups. Crowdfunding for startups has grown in popularity in India through various sectors, including medical expenses and social impact businesses.
However, it is still a relatively young phenomenon. Many entrepreneurs in India have already seen success with crowdfunding for their social impact projects and charitable causes.
Each platform focuses on a different section of the market. These include equity, debt and reward-based crowdfunding. Charity crowdfunding is the largest segment of Crowdfunding in India.
Entrepreneurs must understand the rules and regulations of these platforms before jumping in with a crowdfunding project. Another great advantage of crowdfunding is creating an early version of a product. Many entrepreneurs use crowdfunding to get an early release on a product or service. By offering perks and rewards, investors can build a community around the product or service.
For example, an organic beauty product that helps people feel good about themselves can attract many early backers. A nonprofit that wants to raise funds to support a cause may also benefit by receiving priority access to the first batch of products.
The Different Crowdfunding Platforms in India to Use
Among the top crowdfunding websites, TheHotStart comes in the first place, which was launched in 2014. Projects can be free to start on, and TheHotStart charges 10% of the funds raised. TheHotStart has helped Indian entrepreneurs with various projects, including medical care, education and food and beverage.
Its New and Noteworthy section lets you follow and donate to new campaigns and keep updated on what's new in the Crowdfunding world.
TheHotStart has various tools and features that enable you to create the best product for your customers. Its business advisors will guide you through the process while helping you raise the money you need. Also, it's among the best online crowdfunding platforms.
Here’s the second pick in the top crowdfunding sites. This crowdfunding platform allows creators to reach a global audience while offering flexible funding options. In addition to providing a platform for campaigns, Indiegogo's community-based approach also helps make the process easy. However, there are a few things to consider before launching a campaign on Indiegogo.
You'll need to decide what type of funding you'd like to use for starters. Unlike Kickstarter, Indiegogo offers two types of funding: fixed and flexible. The former type is known as "all-or-nothing" funding, and backers will receive their contributions even if the project doesn't meet its funding goal.
On the other hand, flexible funding allows creators to take a percentage of the money they raise during the campaign, which is less risky for backers but involves more risk for companies.
Let’s know which comes in third place among the best crowdfunding sites. Well, it's no other than Start51. There are several other platforms in India. Start51, for example, is an idea-based crowdfunding platform for startups. It focuses on making it as easy as possible for entrepreneurs to raise funds through their platform. Users pay 5% of the funds raised to the company, giving them access to a network of other investors.
Millions of donors use the GoFundMe online platform to raise money for causes they care about. The site allows donors to choose which campaigns they want to support and then route donations through payment processors.
Donations are usually released to the named beneficiary, but sometimes the campaign organiser receives a portion of the money. Regardless of the source, GoFundMe takes no cut of donations.
To start a campaign on GoFundMe, you must sign up using your email address or Facebook account. Once you've signed up, you'll need to create a campaign, set your fundraising goal, and add photos or videos.
Also, once you've set up your campaign, you can begin sharing it via social media or personal connection. Once you have collected enough money, donors will be able to choose your campaign to support and donate any amount. GoFundMe's Trust & Safety team ensures the safety of campaigns and donations.
Wishberry, an Indian crowdfunding platform aimed at creative fields, is another popular option. Also, Wishberry offers rewards to its donors and helps bring ideas to life. Wishberry's goal is to create a community of patrons in India by connecting creative ideas and projects. With the help of crowdfunding, entrepreneurs can use the funds for product development and social causes.
6. Mightycause - A Nonprofit's Guide to Online Crowdfunding
What is MightyCause? This crowdfunding platform allows nonprofit organisations to create campaigns in exchange for a portion of the funds. Unlike Kickstarter, Mightycause only awards national project grants.
A committee selects national projects from the Gannett Foundation. Regional committees will award operating grants, while incentive grants are given out based on fundraising totals.
Mightycause allows nonprofits to create unlimited fundraising and team campaigns, which can be used for crowdfunding or peer-to-peer fund collection.
Mightycause also offers tools for direct social media sharing through Facebook and Twitter and the ability to embed widgets on your website to encourage visitors to donate directly through your campaign.
It also allows for easy donations and event registration. The Mightycause platform comprises independent modules that help nonprofits organise and manage their fundraising campaigns. This means that nonprofit organisations can get the tools to make their campaigns successful.
They can also use Mightycause to manage donor relationships. The software also boasts the lowest prices in online crowdfunding and features the latest donor management technology. For nonprofits that need an online fundraising platform, Mightycause offers two pricing tiers - free and premium.
If you’re looking for the best crowdfunding platforms for startups, Ketto, a Mumbai-based crowdfunding platform, has a variety of campaigns to choose from. There are campaigns for healthcare, education, sports, animal welfare and personal care.
It also has a section dedicated to urgently fund-needed campaigns and provides tax benefits to backers. Ketto also offers a cash pickup facility. In addition to its many benefits, Ketto is also one of the different crowdfunding platforms in India.
Another option for Indian startups is SeedInvest. Both sites have similar features but differ in the number of fees they charge to get your contribution.
SeedInvest, for example, is free to use, but Republic charges a small platform fee. This fee is around 3% of the total amount raised, and Republic charges between two and five per cent of the money invested. The amount charged may be as high as 8% of the total, depending on the platform.
Another platform for India-based Crowdfunding is FuelADream. This crowdfunding website focuses on reward-based projects and has two funding options - the All or Nothing Plan and the Keep What You Get Plan. It can be a good crowdfunding platform for startups in India.
FuelADream has around 20 active projects on the site each month, ranging from irrigation canals to solar-powered cars. While the site is relatively new, it already has an active community, with 20 new projects added to the site each month.
These were the 9 platforms. A wise thought would be to write a business plan before you carry out your project.
How To Choose Crowdfunding Platforms?
If you're starting a crowdfunding campaign, choosing the best crowdfunding platform for your particular situation is a good idea. There are hundreds of platforms available, and selecting the best one can make all the difference in the success of your campaign. Here are some tips for choosing the best platform for your specific needs:
- The crowdfunding platform's structure
- The purpose of the campaign
- Platform fees and missed targets
- Platform support options
- Available payment methods
- Rules and restrictions
Explaining a few in detail:
- Remember that a crowdfunding platform's success is dependent on its marketing efforts and sharing among your network. Choose a platform that best fits your campaign objectives and budget. For example, a personal fundraiser will have fewer moving parts than a product-based campaign.
- Determine your campaign goals and timeline. You can use a campaign roadmap to determine how long you need to raise the funds needed to complete your project. This will help you determine how many backers ask for.
- Some crowdfunding platforms offer rewards, while others offer a variety of reward structures. Donation-based models are popular for charities and nonprofits.
With so many options and the ability to connect with like-minded people, entrepreneurs and businesses need to find the platform that works best for them. There is a suitable crowdfunding platform available for each need. If you want to keep all the balance sheet’s payment information. We recommend you to use free online platforms such as Khatabook which offer you several impressive features. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.