Crowdfunding is a means for startups to raise funds for their projects. It is done by several people pooling in small amount of money to reach a set goal. Crowdfunding campaigns are typically conducted online and are an alternative to traditional business investments, which require a financial return and can take a long time.
Crowdfunding has become an extremely popular way of generating funds in the recent years. While it is still a novel concept in India, there has been an emergence of various crowdfunding websites, that are both reward-based and donation-based. The websites have also provided opportunities for those who would otherwise have been unable to launch their startups owing to a lack of funds.
With scores of crowdfunding websites to choose from, Indian startups are frequently faced with the dilemma of deciding which crowdfunding platform to use.
The answer is FundingX.
What is FundingX?
FundingX is a relatively new crowdfunding website, cofounded by Sahaj Rastogi and Yash Mudgal. It is based in New Delhi and specializes in reward-based crowdfunding. FundingX is geared towards Indian startups looking to introduce new innovations in the market.
Aims of FundingX
FundingX, in their own words, want to “disrupt the market” by providing a venue for emerging entrepreneurs to approach investors. They live by the slogan “Made in Bharat” and aspire to make startups the “Call of Duty” in India.
There are multiple reasons why FundingX is a better choice than others. Let's take a look at a few of them.
- FundingX is a reward-based crowdfunding website. Therefore, they assist campaigners in retaining their equity.
- Startups can set up a campaign in various categories, ranging from technology and gadgets to wearables and domestic goods.
- There is no listing fee at FundingX. They also have three different pricing plans: Basic, Plus, and Premium. They charge from 5% to 12% of the entire amount raised, which is less than most crowdfunding platforms. More information about the pricing can be found here.
- They provide nationwide support for startups.
- They provide counselling to startups to assist them in launching their projects.
- They feature audience analytics and comment sections to directly engage with the investors.
- Their live chat service is available 24/7.
- FundingX offers several add-ons. Some of them include: Delivery partners, legal advisors, manufacturers, marketing campaigns, influencers and hardware accelerators.
- Before hosting a campaign on their website, FundingX verifies a campaign and tests it. Therefore, as a startup, you don’t have to worry about investors doubting you. The verification also confirms the authenticity of a campaign for the investors.
- FundingX require a detailed report from the campaigners on their team, their professional and educational backgrounds, the type of business they are in, and the risks and opportunities that come with the campaign, among other things. You can learn more about it here.
Despite its novelty, FundingX is a website with a lot of potential. The fact that it is especially targeted at an Indian audience and supports Indian-made products is crucial. "Made in Bharat" thus not only opens the market to Indian entrepreneurs, but also establishes India in the global economy as a competitive player.