India is a country considered by some as underdeveloped. And the main cause of this would be the high rates of poverty, malnutrition, illiteracy and other similar problems. But in recent years, it has made considerable progress. Much of this development comes from the arrival of crowdfunding in this country.

The development of India with crowdfunding

People almost always think of the United States or Europe when crowdfunding is mentioned. And this isn’t unexpected, both are very advanced in this matter. This method of financing raised $17.2 billion in North America, making it the most lucrative continent. However, that doesn’t change the fact that crowdfunding exists in countries considered less developed.

India is one of these countries. It currently continues to struggle with great issues in its society. As are pandemics, malnutrition and poverty, violation of women’s rights, etcetera. But despite these problems, India has proven to be a country where entrepreneurship is present. Not as proliferated as in other countries, but already being accepted and exercised in an open manner.

According to an article by the Wharton business school of the University of Pennsylvania, this is just a trend from a few years ago. But it explains that India has great potential and that in the future it could be a great crowdfunding force. According to the World Bank, in 2012 there were only 10 crowdfunding platforms in India. But that figure has increased in recent years.

We can talk about the current progress of this country in terms of crowdfunding. But to tell the truth, in India, successes were already brewing in this area before the term “crowdfunding” even appeared. This is explained in an article on the successful Indian startups website Your Story. Using as an example the case of the founder of Reliance Industries, Dhirubhai Ambani.

reliance industries crowdfunding business
Dhirubhai Ambani founded a textile company called Reliance Commercial Corporation with collective financing. This company would later become Reliance Industries. Source: openthemagazine.com

Success stories and other details

In the 1960s, Dhirubhai Ambani founded what today is known as Reliance Industries. And according to the article that we mentioned before, he did it through a “crowdfunding” and contributions of communities of the Gujarat capital. This is just one example of the first signs of collective financing in India. Subsequently, after the popularization of crowdfunding, others would come.

Between 2012 and 2017, a variety of crowdfunding platforms have emerged in India. Just to give an example, currently Ketto, Milaap and Wishberry are three of the most predominant Indian platforms. Crowdfunding has also become popular on Facebook, where Indian entrepreneurs use its new fundraising function to finance projects.

lucia india crowdfunding movie
Indian filmmaker Pawan Kumar has financed several of his films through Facebook and other crowdfunding platforms. One of them is Lucia (2014). Source: in.bookmyshow.com

A success story of yore happened in 2014, through the engineer Adhitya Iyer. He had the idea of ​​writing a non-fiction book called The Great Indian Obsession. Which speaks of the Indian “obsession” with engineering within its educational system. This campaign managed to exceed its goal and raise $13,916. Crowdfunding in India is very successful in the social and business area, but it also has a presence in the entertainment world.

An article by GlobalFunding explains that Indian crowdfunding has had to pass tests. Among them is building trust in the public and offering transparency. Through Indian crowdfunding organizations and companies, several advances have been made. Many of them were observed in the first Crowdfunding Symposium in India, which took place in September 2017 in the capital of Bombay.

symposium india crowdfunding
The 2017 Crowdfunding Symposium in India was the first one registered in that country. It was launched by Impact Guru and GlobalGiving and was attended by several crowdfunding and fundraising organizations. Source: Medium

For India, crowdfunding has become a great opportunity. For non-profit organizations, entrepreneurs and for anyone who needs it. This is very convenient for this country, because now people have access to democratized funds. And combined with other financing methods, there are high chances of starting a fundraising campaign and being successful.

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Crowdfunding continues to drive India!