When someone starts any business/ startup, one has to invest money in it. Unlike a job, where you get salary by the end of the month, in your own business, you have to make investments and wait for the profits to happen. With this, one might think, that only rich people can think of it. But it’s not the truth. One can take the loan from the bank and start the investment.
On a small scale, one might handle the expenses on its own, but as the business/ startup flourishes, and the work increases, one needs to add more money to the business. One can do this by taking money from the market, either in the form of the loan from the bank or any financial institutions or through share capital, i.e. funding in exchange for shares, or funding from the government or any organization on the basis of few agreements.
In the case of the fund, one need not necessarily pay back the amount, therefore they can be considered donations as well, but in the case of finance, there is a condition of repayment to the financer with a certain amount of interest.
Let’s have a look on the funds received by the famous startup of India which helped them a lot in the growth of their business.
Paytm (Pay Through Mobile) is the most used app nowadays for cashless transactions anywhere. It’s a kind of wallet which is present in the mobile. You can pay to a vendor, book a cab, buy movie tickets, borrow money from someone or lend money to anyone, do everything but without cash. You just need your cellphone and money in your paytm wallet. No need to carry the risk of big notes in your pocket anymore, just take care of your mobile.
Vijay Shekhar Sharma, applied this great startup idea, also the creator of Indiasite.net.
Paytm was launched in Aug. 2010. It received a funding of Rs.1 Cr. from Ratan Tata in March 2015. It’s the first company to receive funding from China. Alibaba Group raised funds of $575 million.
In 2016, it borrowed an amount of Rs.300 Cr from ICICI Bank as a working capital in March 2016. An amount of $200 million is funded by Alipay Singapore E-commerce Pvt. Ltd, in two portions- $65 million and $135 million, for 25.88% share. Total funding received by Paytm is $890 million, making it the most successful startups of India. It is valued at $1.86 billion.
In 2015, RBI has provided the license to Paytm to open the first ‘Payments Bank’ of India.
OLA is a cab service in India, which made it much easier for the common people to commute from one place to other. Without any hustle –bustle, a cab would come to your doorstep with a personal driver and you can go to places you want. The reason for the success of this startup is the transparency with the customers. One can track the vehicle, count the billing amount, and all these things are handy with the customer on his cell phone.
Bhavish Aggarwal and Ankit Bhati founded an online cab aggregator, in Mumbai, on 3rd Dec 2010, but later on shifted to Bangalore.
- In Nov 2015, it raised a funding of $500 million.
- In Dec 2015, Vanguard Mutual Funds funded $57 million.
- Total funding by the end of 2015- $900 million.
- Hence, it has secured total amount of $1.23 billion.
It has 6 Lac vehicles in 110 cities. It was valued at $5 billion in Sept 2015 but was devalued by Vanguard to $3.5 billion.
Most popular startup- an online shopping site for everyday need- electronic gadgets, appliances, clothing, accessories, home related items, books or kids’ products. In 2007, Sachin Bansal and Binny Bansal founded the site, and it cost Rs.4 Lac only in the website development.
- It raised funding of $1 million, $10 million and $20 million from Accel India and Tiger Global in the year 2009, 2010 and 2011 respectively.
- 2012- Received $150 million funds from MIH and ICONIQ Capital.
- 2013- Raised funds of $200 million from previous investors and $160 million from new investors.
- May- $210 million from DST Global, Tiger Global, Naspers and Iconiq Capital.
- July- $1 billion from existing investors and Singapore Sovereign-Wealth Fund GIC.
- December- $700 million funding.
- 2015- May- $550 million from its existing investors.
Total raised funds by Flipkart covers up to $3 billion.
On 10th April 2017, Flipkart announced that it has secured $1.4 billion. It is valued at $11.6 billion.
Pepperfry is an e-commerce portal, designed for the online shopping of all household products. From furniture to lamps to kitchen to dining to housekeeping to electrical, everything at just one click. Ambareesh Murty and Ashish Shah founded this startup in 2011. In Jan 2012, they launched its official site.
- In Nov. 2011, funding of $5 million by raised from Norwest Venture Partners (NVP).
- April 2013, $8 million was received from NVP.
- May 2014, Bertelsmann India Investments (BII) raised funds of $15 million.
- July 2015, funding was provided by Goldman Sachs, Zodius Technology Fund, BII and NVP of $100 million.
- Latest funding amount was $31 million, in Sept. 2016.
- Therefore, it has completed 5 rounds of funding which sums up to the total amount of $159 million.
In Nov. 2014, it shipped 1 Lac units of furniture and in May 2015, it covered 1 million customers.
An advertisement platform where one can post ads free of cost or without any charges. Pranay Chulet and Jiby Thomas created this startup platform in 2008. Its headquarters are in Bangalore. The classifications listed in this app include cell phones, goods related to household, jobs, education and services, property and vehicles. This platform has made buying/ selling a very easy task as compared to the previous times. Its previous name was Kijiji India (2005) but was renamed to Quikr in 2008.
It underwent 9 rounds of funding from 2008 to 2016.
- 2008- Amount undisclosed (Series A)
- July 2009- Rs.200 million (Series B)
- March 2010- $6 million (Series C)
- May 2011- $8 million (Series D)
- May 2012- $32 million (Series E)
- March 2014- $90 million (Series F)
- Sept 2014- $60 million (Series G)
- April 2015- $150 million (Series H)
- Aug 2016- $20 million (Dept Financing)
Hence, it raised a total funding amount of $350.15 million.
These are the funding details of few successful business startups of India which have gone so far in few years and are still moving forward in their journey to reach heights.
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