India’s funding gap needs to be closed: Padmaja Ruparel
Finding the right funding at the right time has been a crucial contributor to the success of many startups. While investors both in India and globally agree that India has a budding but vibrant startup ecosystem, there are still some gaps in the funding landscape that companies are struggling with.
That’s the word coming in from Padmaja Ruparel, co-founder and president, Indian Angel Network (IAN). Speaking to Fortune India at the Most Powerful Women summit held in Mumbai, Ruparel said most companies sail through one round of funding where they manage to raise about Rs 3-4 crore. But it is the next round where startups face hurdles.
“A common phenomena between Indian and global angels is the fact that each company that raises money is raising about Rs 3-4 crore which is half a million,” Ruparel said, adding that IAN has found that the biggest funding gap comes just after this round.
“We found that one of the big gaps in the industry in India is post the Rs 3 crore round when cos need the next Rs 12-15 crore and they find it very hard get,” she said.
Ruparel then said that the Rs 450 crore IAN fund is trying to address the gap and also provide mentoring and market access to startups to help them grow.