The concept of crowdfunding refers to the use of small amounts of capital from a large number of people to finance any need, whether it is personal or financial. Sounds familiar? It’s because we’ve seen crowdfunding in India everywhere.
If you’ve ever put change in a temple’s donation box, you’ve actually been crowdfunding the temple’s development.
Similarly, if you have been a part of a chit fund, where you’ve donated only a small amount for a greater cause, you’ve been crowdfunding.
Or, if you ever pitched in to help a colleague with their financial needs, you’ve helped crowdfund that person.
Crowdfunding has been prevalent throughout the country and we’ve all been a part of it, intentionally or not.
For me, the first time I realized the importance of crowdfunding goes back to when I was in high school. I wished to go study abroad for college but my parents refused. That got me thinking about the various ways I could gather funds to pay for my studies abroad. I understood very quickly that crowdfunding as a concept should definitely be in India since countless people are deprived of their needs due to a lack of funds. And, countless people are eager to help others but are unable to.
A platform that brought these two sections together seemed tough, but not impossible.
9 years ago when we started Ketto, it seemed surreal. Despite knowing this concept, many Indians remained passive about it. It seemed overwhelming at times to work in a completely new industry, and be able to validate our hypothesis around crowdfunding. However, the moment even one person appreciated our company and supported it, it was the biggest boost we could have hoped for.
The crowdfunding volume in India during 2013–2017 reached USD 450 million, which is just a small fraction of the potential estimated by the World Bank!
Over the past few years, crowdfunding has gained a lot of attention, primarily for its socio-economic impact. In addition to helping individuals raise money for medical and memorial fundraiser expenses, crowdfunding provides early-stage capital to innovators that help to bring creative ideas to life.
There are several advantages of crowdfunding, including the ability to tap into a wider investor pool and enjoy more flexible fundraising options.
With crowdfunding campaigns online, you can reach a wider audience plus it’s cheaper and more convenient than using traditional methods.
For the past couple of years, medical crowdfunding has been gaining momentum in India to assist common people with raising funds for medical treatment. Given the population and poverty levels of our country, crowdfunding is a possible way to boost our economy considerably.
With the onset of COVID-19 campaigns, Ketto has seen a 4X growth during the lockdown.
Crowdfunding activities have seen a surge across the country over the past year, and donations have nearly doubled in comparison to pre-pandemic days. Although the pandemic has made everyone’s life difficult, it also has made people more compassionate and understanding towards others. There is increased awareness, empathy, and the desire to support the ones in need. Crowdfunding for Medical Expenses is A New Age Alternative to Raise Funds for Medical Costs.
Ketto has a newfound hope that the idea we started years ago, that we wanted to make the world a better place, is finally gaining traction.
The benefits of crowdfunding can be enormous for entrepreneurs and early-stage companies since funds can be raised easily, without major compliance and are cost-effective.
Among the key reasons for the rise in crowdfunding in India are an increase in philanthropy and charity among Indians, a surge in foreign donations, and support for new and innovative causes.
The use of the internet for crowdfunding is gaining more and more popularity since 59.5 per cent of the global population is now online.
People are now comfortable with the idea of crowdfunding, they’re coming forward to help one another through Ketto and it makes us nothing but proud.
No matter who you are, where you come from and what you are pursuing- anyone and everyone can start a fundraiser for their needs and experience first-hand how beneficial crowdfunding is.
When Ketto was launched in 2012, it was our dream to make crowdfunding available in the country and make healthcare accessible for all. Today, it’s been 9 years since we started and that dream has now evolved into our mission. With its vast population, a country like India is in a unique position to ensure that no one is left behind due to a lack of resources. If we can inculcate in them the joy of giving, not only will everyone be able to live comfortably but also will experience the joy of giving.
And with Ketto, we are not only aiming to be a crowdfunding platform but also to implement joy-giving across the nation.
The above blog is also available to read on Varun Sheth LinkedIn.