Understanding Crowdfunding From an Indian Perspective
As we know, crowdfunding is a rising trend in the UK, US, Canada, and China. Investors in India are also moving towards this trend of funding for well-said reasons. It includes:
- Initiation of any project like music, film, etc.
- Earning Interest.
- Starting a business venture in India.
What is Crowdfunding?
Crowdfunding is a type of investment usually made by a web-based social networking platform.
On the other hand, a person or investee is waiting for such funds for a specific purpose. People from different sectors cumulatively provide these contributions.
This whole process stands successfully online, and we call it a crowdfunding platform in this case.
A Renowned And Inspiring Example:
The textile business of Dhirubhai Ambani was initially small and was in a growing stage at that time. Looking at the bright and emerging scope of business investors, he invested under the crowdfunding concept. It is the best example of crowdfunding in India.
Ways of Crowdfunding
There are various mediums of the contribution of funds. Out of which, 5 main ways are as following:
When individuals perform financial help without expecting any financial outcome, such crowdfunding from an Indian perspective comes under this title.
Here, the investor will provide financial help to the investee, but on the condition of repayment based on specific terms and conditions.
In this way, the investor has all the right to claim equity in the project.
Various investors provide unsecured loans to borrowers at an interest rate fixed by the online platform.
Here, the investor invests in purchasing a product, but the investment is made in advance, and the product is purchased later.
Limitations of Crowdfunding
Even though crowdfunding is growing in India, there are some limitations to the same.
- For a long time, this concept is prevailing in the Indian scenario. Still, some people are not ready to understand the essence of crowdfunding. Thus, this concept is developing but slowly.
- In such platforms, long-term credibility and transparency lack because these online platforms are not sincere or active in approaching regulators and investors. Sometimes, they fail in their financial commitments.
- There is contribution or participation, but at a slow pace. It is a negative side of crowdfunding. It happens because still many people are not fully knowledgeable about this online funding platform.
- Sometimes spending so much time upon such platforms may not give you a valuable result.
- The funding is for making a project successful. But it may happen that the project got funding but wouldn’t go well. It may ruin the investee’s reputation.
Despite these limitations, in the coming months or years, such platforms are going to increase their space. Ketto is such a newly launched platform for crowdfunding. It comes under observation that crowdfunding has already started spreading its hands towards the film or media industry. Facebook and other platforms have provided Director Pawan Kumar an opportunity to raise a lump sum amount by applying this concept.
Ketto – An Online Crowdfunding Medium For All Walks Of The Society
Many times it is observed that various NGOs find it difficult to raise funds for a noble cause. It happens because they fail to create awareness among investors. Their ketto becomes the center of attraction.
Ketto is a platform that helps NGOs create awareness among various individuals and turn them into investors. There is no single way but unlimited ways under Ketto.
Let’s have a look at some of the primary ways.
Marathon is one of the best ways to spread awareness among the masses. By applying this strategy, you are raising funds quickly and letting your NGO name spread to everyone. NGOs will be able to raise enough funds. Networks will again help to grow more networks.
Many volunteers raise funds from diverse networks by spreading awareness about the NGO by the grace of social media. It even saves the wastage of excess money.
This strategy is useful because festivals can easily be treated as an efficient way or day to spread awareness about NGOs. It further helps in successful fundraising without any hassle.
Merchandise, artworks, or any other creative ideas can be an excellent medium to raise huge funds. By selling these donation tickets, mementoes, artworks, or such things via ketto, NGOs can raise funds to fulfil their cause. It opens the door to reach a broad network that can help them in the future too.
Corporate institutions sometimes run the strategy of raising funds by putting the employees in competition. They are ordered to raise more and more funds to win the competition. Here, ketto helps to raise funds via corporates.
Various organizations raise funds by outsourcing jobs. They hire many employees who raise funds by using their respective networks.
Thus, Ketto is a platform that enables the creation of supporters for the NGO and further spreads the network base. It saves time, wastage of money, and spreads awareness.
Through crowdfunding, an Indian Perspective makes many things possible. Interaction between investors, small startups, and projects become easy. There will be no restriction on entry due to the all-time availability of social media platforms and fewer chances of failure with respect to raising enough funds. Moreover, it provides a hassle-free trading environment and spreads happiness.
Therefore, from an Indian Perspective, Crowdfunding is a great platform to help needy people or organizations.