InMobi is preparing for a major public market moment. The SoftBank-backed mobile advertising company has reportedly appointed four investment banks for a planned IPO that could raise around $1 billion.

According to reports, JPMorgan Chase, Jefferies, Kotak Mahindra Capital and Axis Capital have been selected for the IPO process. The listing is expected to take place in India, though the final size, valuation and timing can still change.

InMobi is often remembered as India’s first unicorn. If the listing moves ahead smoothly, it could become one of the most closely watched technology IPOs in India.

What InMobi does

InMobi is a mobile advertising and consumer technology company. In simple words, it helps brands show ads to the right users on mobile phones, apps and connected digital surfaces.

For example, when a brand wants to promote a shopping app, a game, a credit card or a new phone, it needs to reach people who are likely to care about that product. InMobi provides technology that helps advertisers find those users and run campaigns across mobile apps and other digital channels.

It also works with app publishers. These are companies or developers who own apps and want to earn money from ads. InMobi helps them show ads inside their apps and earn revenue.

So, InMobi sits between advertisers and publishers. Advertisers want attention. Publishers want income. InMobi’s technology connects both sides.

Who founded InMobi and when

InMobi was founded in 2007. It began as mKhoj, an SMS-based search and monetization business in Mumbai, before moving into mobile advertising.

The company was started by Naveen Tewari, Abhay Singhal, Amit Gupta and Mohit Saxena. Current company leadership also lists Piyush Shah as a co-founder and President of Glance.

Naveen Tewari is the founder and CEO of InMobi and Glance. In 2011, InMobi became India’s first unicorn after SoftBank invested in the company. A unicorn is a privately held startup valued at $1 billion or more.

Why the IPO is important

InMobi’s IPO matters for three reasons.

1. First, it would bring one of India’s oldest global technology startups to the public market. Many newer startups have already listed, but InMobi belongs to an earlier generation of Indian internet companies.
2. Second, the IPO may test investor appetite for adtech and AI-led consumer internet businesses. InMobi is not a food delivery company, a marketplace or a lending platform. Its business is more technology-heavy and global.
3. Third, the listing could be part of a larger trend where Indian-origin companies move their holding structure back to India before going public. Reports say InMobi is in the process of shifting its domicile from Singapore to India for the listing.

How large could the IPO be

The latest report says InMobi may raise about $1 billion through the IPO. Earlier reports had suggested a possible valuation range of around $5 billion to $6 billion.

These numbers are still reported figures, not final IPO terms. The final valuation will depend on market conditions, investor demand, financial performance and regulatory approvals.

IPO plans can also change. Companies often appoint bankers first, then work on documents, valuation, investor roadshows and regulatory filings. So, the banker appointment is a strong signal, but it is not the same as a confirmed listing date.

What are the four bankers expected to do

Investment banks play a big role in an IPO.

They help the company prepare documents, speak with large investors, decide the price range, manage demand and support the share sale process.

InMobi has reportedly appointed two global banks, JPMorgan and Jefferies, along with two Indian banks, Kotak Mahindra Capital and Axis Capital. This mix makes sense because InMobi has a global business, but the planned listing is expected in India.

What changed in InMobi’s business

InMobi started mainly as a mobile advertising company. Over time, it expanded into marketing technology, consumer internet and commerce-led products.

Its advertising business works with brands and app publishers. Its consumer side includes Glance, a lock-screen content and commerce platform, and Roposo, a video and creator-led platform.

InMobi’s website says its advertising platform serves more than 30,000 brands and reaches over 2 billion users across more than 150 countries. The company is also positioning itself around GenAI-powered discovery, shopping and engagement.

Put simply, InMobi wants to be more than an ad network. It wants to build technology that helps people discover content, products and services on phones before they even search for them.

A practical example

Suppose a smartphone user is interested in cricket, travel and fashion. A brand selling sports shoes may want to reach that user during a high-attention moment.

InMobi’s advertising technology can help the brand run a campaign across mobile apps or surfaces where the user is likely to engage. If the campaign works well, the brand gets visibility or sales, the app publisher earns ad revenue, and InMobi earns by powering the ad transaction.

With Glance, the idea goes a step further. Content, shopping suggestions or entertainment can appear on a lock screen or similar surface, making discovery faster and more visual.

Competitors InMobi faces

InMobi operates in a tough market. Its biggest global competitors include Google, Meta, AppLovin, The Trade Desk, Unity and other mobile advertising platforms.

Google and Meta dominate digital advertising because of their huge user base and data strength. AppLovin is strong in mobile app advertising and gaming. The Trade Desk is a major name in programmatic advertising, which means automated buying and selling of digital ads.

InMobi’s advantage is its mobile-first experience, global reach and India-origin story. But to impress public market investors, it will need to show steady growth, strong margins and a clear path in AI-led advertising and commerce.

What investors will watch

Before the IPO, investors will likely look closely at revenue growth, profitability, customer concentration, competition and the performance of Glance.

They will also watch how much of the IPO is fresh issue and how much is offer for sale. A fresh issue brings money into the company. An offer for sale lets existing shareholders sell some of their stake.

SoftBank’s role will also be watched. Reports say SoftBank recently sold a large part of its stake back to the company, while still keeping a smaller holding.

Conclusion with key takeaways

InMobi’s reported $1 billion IPO plan could be a major moment for India’s startup ecosystem. The company has travelled a long road from mKhoj in 2007 to a global mobile advertising and consumer technology platform.

Key takeaways

• InMobi has reportedly appointed JPMorgan, Jefferies, Kotak Mahindra Capital and Axis Capital for its IPO.
• The company may look to raise around $1 billion.
• InMobi was founded in 2007 and became India’s first unicorn in 2011.
• The company works in mobile advertising, marketing technology, content discovery and commerce.
• Its competitors include Google, Meta, AppLovin, The Trade Desk and Unity.
• The IPO plan is still subject to market conditions, regulatory steps and final company decisions.

Facts Input- BS, MC

Disclaimer

This article is for informational purposes only and should not be treated as financial or investment advice. IPO plans, valuations, banker appointments and listing timelines may change based on market conditions, regulatory approvals and company decisions. Readers should consult with their financial advisor, check official filings, company announcements and SEBI documents before making any investment decision.

Udaan has secured $160 million in equity and debt financing, giving the B2B ecommerce company some much-needed breathing space before its planned IPO journey.

The timing is important. Udaan was recently dealing with pressure from offshore creditors after a debt default linked to its Singapore holding company. The new financing and restructuring agreement help the company avoid a deeper crisis and move ahead with a cleaner balance sheet.

For a startup preparing to list publicly, this kind of cleanup matters. Public market investors do not only look at growth. They also look at debt, losses, governance, cash burn and how simple the company structure is.

What Udaan does

Udaan is a Bengaluru-based B2B ecommerce platform founded in 2016 by former Flipkart executives Vaibhav Gupta, Sujeet Kumar and Amod Malviya.

The company connects small retailers, wholesalers, traders and brands across categories such as FMCG, staples, fruits and vegetables, pharma and general merchandise.

In simple words, Udaan helps kirana stores and small businesses buy goods digitally instead of depending only on old offline distributor networks.

The startup’s larger aim has always been to modernize India’s trade supply chain. Small retailers often face problems like limited credit, poor price visibility, irregular supply and dependence on middlemen. Udaan wanted to make that system more organized through technology, logistics and bulk buying.

Funding and restructuring details

Udaan’s latest financing package is tied closely to debt restructuring.

Reports say the company reached an agreement with offshore creditors over claims of around $178 million. The package includes upfront cash payment, new convertible bonds, debt-to-equity conversion and fresh credit support.

BlackRock’s private credit arm is expected to provide a fresh $45 million credit facility. Existing investor Lightspeed is also part of the support structure. Earlier, Lightspeed had provided a $40 million top-up loan, which is now reportedly being converted into preferred equity.

A part of the creditor claim, around $35 million, is expected to be repaid upfront in cash. Around $65 million may be issued as new convertible bonds, while the remaining portion is expected to be converted into preferred convertible shares.

Why debt restructuring before IPO

This is the central point.

Before an IPO, a company wants its financial house in order. If debt is messy, creditors are unhappy, or legal disputes are active, public investors may hesitate.

Debt restructuring helps Udaan in four ways.

1. First, it avoids an immediate bankruptcy-like situation around its offshore holding company.
2. Second, it reduces uncertainty with creditors. Instead of fighting in court, the company and lenders now have a settlement path.
3. Third, it simplifies the capital structure. That matters because IPO investors want to understand who owns what, what debt remains, and what future obligations the company has.
4. Fourth, it gives Udaan more time. The company reportedly needs liquidity support for the next 12 months as it continues work toward a public listing.

Why this matters for Udaan’s IPO plans

Udaan has been preparing to shift more of its structure into India ahead of a possible IPO. In 2025, it received NCLT approval to consolidate its technology, logistics and wholesale trading units under Hiveloop Ecommerce.

This kind of restructuring is common before listing. Investors prefer a cleaner India-domiciled structure when the business mainly operates in India.

But financial restructuring is just as important as corporate restructuring. A company cannot go to the IPO market with a major debt dispute hanging over it.

The latest deal gives Udaan a chance to tell a better story – one of improved margins, lower burn, cleaner debt and a more focused business model.

The business challenge

Udaan’s journey has not been easy.

The company raised more than $2 billion in equity since 2016, but it also burned a lot of cash while trying to change India’s traditional trade system. Small retailers did not shift away from existing distributors as quickly as expected.

The company also tried to operate across many categories. That made scale attractive, but execution harder. Logistics, credit, pricing, inventory and retailer behaviour all vary by category.

In recent years, Udaan has narrowed its focus and worked on improving unit economics. Reports say the company has reduced EBITDA burn, improved contribution margins and made some large operating clusters profitable.

That is the kind of progress IPO investors will want to study closely.

Competitors

Udaan competes in India’s B2B commerce and trade-tech market.

Its rivals include Jumbotail in kirana-focused B2B commerce, ElasticRun in rural distribution and commerce, ShopKirana in retailer supply, and OfBusiness in B2B procurement for industrial goods. In specific categories, it also competes with traditional distributors and large FMCG supply chains.

The biggest competitor, however, may still be habit. India’s small retailers often trust local wholesalers and distributors they have known for years. Any digital platform has to offer better price, supply reliability, credit and service to change that behaviour.

What the financing means for retailers

For small retailers using Udaan, the immediate effect may not be visible. But a stronger balance sheet can help the company maintain supply, improve service and continue investing in useful categories.

If Udaan becomes more financially stable, retailers may get better inventory availability, smoother fulfilment and stronger private-label offerings.

The company has also been focusing on higher-margin businesses and private labels, especially in staples. That can help both Udaan and retailers if pricing and quality remain consistent.

Risks ahead

The financing deal is helpful, but it does not solve every problem.

Udaan still needs to prove that it can grow profitably. Public market investors will look closely at revenue trends, losses, cash burn, working capital, debt obligations and customer retention.

Its FY25 revenue reportedly fell year-on-year, though losses narrowed. That means the company has improved discipline, but growth quality will remain under watch.

The IPO market can be unforgiving. A company with a strong story but weak numbers may struggle. Udaan will need both.

Conclusion – Key takeaways

Udaan’s $160 million equity and debt financing is more than a normal funding update. It is part of a larger balance-sheet repair exercise before the company’s IPO ambitions.

The restructuring helps settle creditor pressure, brings fresh liquidity and simplifies financial obligations. For Udaan, this creates room to focus on profitable growth, retailer value and public market readiness.

Founded in 2016 by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, udaan still has a large opportunity in India’s B2B retail market. But the next phase will be judged less by ambition and more by execution, profitability and trust.

Facts Input- ToI, All other editorial, contextual interpretation, and analytical framing, perspective are added independently sourced from various online mediums/social media/publicly available platforms. Content synthesis and opinion contains original editorial input and all analysis are independently developed & authored.

Square Yards has become one of India’s newest unicorns after raising Rs. 900 crore through a mix of debt and equity. The funding round was anchored by EAAA Alternatives, with participation from global corporate credit manager Muzinich & Co., according to reports.

The Gurugram-based company works in real estate, mortgages, rentals, property management, interiors and real estate technology. In simple terms, it is trying to bring many parts of the home-buying journey under one roof. This funding is also important because Square Yards is preparing for an IPO. A unicorn tag can improve visibility, but the real test will be whether the company can keep growing profitably in India’s complex property market.

Square Yards Funding And Unicorn Status

Square Yards raised Rs. 900 crore, or about $95 million, in its latest round. The fresh funding pushed the company’s valuation above $1 billion, making it a unicorn. A unicorn is a privately held startup valued at $1 billion or more. It does not mean the company is already listed on the stock market. It simply means investors have valued it at that level during a funding round.

This latest round follows Square Yards’ earlier $35 million funding in November 2025, when it was valued at around $900 million. The company is also reportedly preparing for a Rs. 2,000 crore IPO.

As per reports, Square Yards may also raise another $50-60 million in the next quarter at a possible valuation of $1.6 billion.

Founders And Company Background

Square Yards was founded in 2014 by Tanuj Shori and Kanika Gupta Shori. Tanuj Shori is the Founder and CEO of the company. The company started with real estate sales and focused strongly on residential property. Over time, it expanded into mortgages, rentals, property management, interiors and real estate software.

Today, Square Yards operates through several connected brands. Urban Money focuses on secured loans and mortgages. Azuro works in rentals and property management. Interior Company handles home interiors and modular furnishing. PropVR provides virtual and 3D property experiences.

That is why Square Yards is not only a property listing website. It is closer to an integrated real estate services platform.

How Square Yards Works

To understand Square Yards, think about a person who wants to buy a home in Noida, Pune or Bengaluru. That buyer may first need to compare projects, check prices, speak to developers, understand legal papers, apply for a home loan, choose interiors and maybe later rent out the property. Usually, these steps involve different agents, banks, websites and service providers.

Square Yards tries to connect these steps. It helps customers discover properties, speak with sales teams, arrange loans through Urban Money, and later use related services like interiors or property management.

For developers, Square Yards acts as a sales and distribution partner. For banks and NBFCs, it can bring mortgage customers. For buyers, it offers guided property search and transaction support.

This model works well if the company can build trust. Real estate is a high-value purchase, and buyers need clarity more than flashy advertising.

Working Principles Behind The Business

Square Yards’ business runs on four broad principles.

1. First, it uses an offline plus online model. Real estate is not like ordering food or booking a cab. Buyers often want human help before making a decision. So, the company combines digital discovery with sales advisors.
2. Second, it builds around the full property journey. Instead of only earning from one property sale, Square Yards can also earn through loans, rentals, interiors and management services.
3. Third, it uses data and technology. Tools such as property valuation, title search and virtual property experiences can make the buying process more informed.
4. Fourth, it works in a fragmented market. India’s real estate sector has many brokers, local agents and developers. A platform that can organise supply, financing and services may have room to grow.

Why Investors Are Interested

Investors appear to be looking at Square Yards as a profitable and scalable company in a large market. Economic Times reported that the company posted Rs. 2,086 crore revenue in FY26, up 48 percent year-on-year. Its EBITDA rose to Rs. 176 crore.

EBITDA is a simple way to look at operating profitability before interest, tax, depreciation and amortization. It is not the same as net profit, but it gives a sense of whether the main business is becoming stronger.

Urban Money is also a major part of the story. The mortgage arm reportedly facilitated loan disbursals of Rs. 87,831 crore in FY26 and works with more than 150 banks and NBFCs. That gives Square Yards a fintech angle, not just a property angle. In a country where home loans are a major part of property buying, this can become a strong growth driver.

Competitors In The Market

Square Yards competes with different companies in different parts of its business.

In property discovery, its competitors include 99acres, Magicbricks, Housing.com and NoBroker. In real estate advisory and brokerage, it competes with local brokers, developer sales teams and organized players such as Anarock.

In home loans, Urban Money competes with banks, NBFCs, BankBazaar, Paisabazaar and other digital lending marketplaces. In interiors, Interior Company competes with Livspace, HomeLane and local interior firms.

This makes Square Yards’ market opportunity large, but also difficult. The company has to perform well across multiple businesses, not just one.

What Other Unicorns Are In 2026

Square Yards is being counted among India’s new unicorns of 2026. Before it, reports listed companies such as Juspay, Neysa, KreditBee, Skyroot Aerospace and Sarvam AI among the startups that entered the unicorn club this year.

Juspay became the first Indian unicorn of 2026 after a funding round valued it at around $1.2 billion. Neysa entered the club in the AI cloud infrastructure space. KreditBee became a unicorn in digital lending. Skyroot Aerospace became India’s first spacetech unicorn. Sarvam AI joined the list after raising $234 million at a $1.5 billion valuation.

This list shows an interesting shift. India’s unicorns are no longer coming only from food delivery, ecommerce or consumer apps. In 2026, the action is spread across fintech, AI, space technology and real estate.

Other well-known Indian unicorns from earlier years include PhonePe, Razorpay, CRED, Groww, Zerodha, Lenskart, Meesho, OfBusiness and PhysicsWallah.

What This Means For India’s Startup Market

Square Yards becoming a unicorn is a positive sign for the proptech sector. Real estate is one of India’s largest markets, but it has always been difficult to organize. If Square Yards can simplify buying, loans, rentals and property services, it can build a strong position before going public. But the IPO market will ask harder questions than private investors. Public market investors will look closely at margins, cash flow, governance and long-term growth.

For customers, the bigger hope is simple. A more organized real estate platform can reduce confusion, improve transparency and make property decisions less stressful.

Conclusion With Key Takeaways

Square Yards’ Rs. 900 crore funding round has pushed it into the unicorn club and given it fresh strength ahead of its planned IPO. The company’s biggest advantage is its full-stack model across property sales, mortgages, rentals, interiors and real estate technology.

Key takeaways

1. Square Yards has raised Rs. 900 crore through a mix of debt and equity.
2. The round was anchored by EAAA Alternatives, with participation from Muzinich & Co.
3. The company is now valued above $1 billion, making it a unicorn.
4. Square Yards was founded in 2014 by Tanuj Shori and Kanika Gupta Shori.
5. Its key businesses include real estate transactions, Urban Money, Azuro, Interior Company and PropVR.
6. Other Indian unicorns of 2026 include Juspay, Neysa, KreditBee, Skyroot Aerospace and Sarvam AI.

The company’s next big test will be IPO readiness, profitability and customer trust.

Facts Input- ET

Zepto is moving closer to the stock market. The quick commerce company has filed updated IPO papers with SEBI for a public issue that is expected to be around Rs. 9,500 crore, with reports saying the company is targeting a July 2026 listing. This is a big moment for India’s startup market because Zepto is not an old retail company slowly moving online. It is a young, fast-growing startup built around the promise of delivering groceries and daily-use items in minutes.

Zepto is about convenience for the common users but for investors, it is about whether quick commerce can become a profitable business at scale. That is what makes this IPO more than just another listing.

What Zepto Has Filed

Zepto has filed its updated draft red herring prospectus with SEBI. According to reports, the IPO includes a fresh issue of shares worth Rs. 8,010 crore and an offer-for-sale by existing investors.

The total IPO size is expected to be around Rs. 9,000 crore to Rs. 10,000 crore, with The Economic Times reporting it as a Rs. 9,500 crore public issue.

The offer-for-sale means some existing investors will sell part of their holdings. Reports mention Nexus Venture Partners, Contrary, Razor Ventures and Kaiser entities among the selling shareholders. The founders, Aadit Palicha and Kaivalya Vohra, are not reported to be selling shares in the OFS.

Zepto had earlier filed IPO papers through the confidential route and received SEBI approval in May 2026. The updated filing now brings it much closer to an actual listing.

Founders And Zepto’s Startup Journey

Zepto was founded by Aadit Palicha and Kaivalya Vohra. The company’s quick commerce brand started in 2021, while its corporate entity was originally incorporated in December 2020 as Kiranakart Technologies.

The founders became well known in India’s startup ecosystem because they built Zepto at a very young age. The company began with the idea of fast grocery delivery and grew rapidly as Indian consumers became comfortable ordering even small daily items online. The timing helped. During and after the pandemic, people became more open to buying groceries, snacks, personal care items and household essentials through apps. Zepto took that behaviour and pushed it further with the dark store model.

How Zepto Is Helping People

Zepto’s biggest impact is convenience. A working professional can order milk, bread, eggs or vegetables without stepping out. A student can get snacks and stationery quickly. A family can place a last-minute grocery order when guests arrive. This may sound small, but in crowded Indian cities, saving 30 to 60 minutes matters. Traffic, long billing queues and parking problems make daily shopping tiring. Quick commerce solves that pain point for many urban users.

Zepto also helps people during urgent situations. For example, someone cooking dinner may suddenly realize they are out of oil or spices. A parent may need baby products quickly. A person working late may need basic groceries without visiting a store at night.

Beyond customers, quick commerce creates jobs in warehousing, delivery, store operations, technology, customer support and supply chain management. It also gives many new-age consumer brands a digital shelf where they can reach buyers faster.

Where The IPO Money May Go

Zepto plans to use the fresh issue proceeds for business expansion. Reports say the money will be used to grow its dark store network, pay lease rentals, invest in technology and cloud infrastructure, support marketing, and fund possible acquisitions.

Dark stores are small fulfilment centres placed close to high-demand neighbourhoods. Customers do not walk into these stores. Instead, workers pick and pack orders from them, and delivery partners take the orders to customers.

This model works only when location, inventory and demand are managed well. If a dark store is too far, delivery becomes slow. If stock is poorly planned, customers see too many unavailable products. If rent is too high, profitability becomes harder. That is why Zepto’s IPO money is important. The company needs capital to expand, but it also needs discipline to make each store more efficient.

Zepto’s Growth And Financial Picture

Zepto has grown very fast. Reports based on the updated filing say the company’s revenue from operations more than doubled in FY26. Moneycontrol reported revenue from operations of Rs. 22,624 crore for FY26 in one analysis, while another report cited Rs. 24,164 crore. The company is still loss-making. Its net loss figures vary depending on the metric and report, but the larger message is clear – Zepto has scale, but profitability remains a key question.

For investors, this is the central debate. Fast growth is attractive, but public markets also want a clear path to profits. Zepto will have to show that its dark stores can become more productive, delivery costs can be controlled, and customer discounts can reduce without hurting demand.

Competitors In Quick Commerce

Zepto operates in one of India’s toughest consumer internet markets. Its major competitors include Blinkit, Swiggy Instamart, BigBasket, Flipkart Minutes and Amazon Now. Blinkit is backed by Eternal, formerly Zomato, and has become a strong quick commerce player. Swiggy Instamart is part of Swiggy’s larger food delivery and convenience ecosystem. BigBasket has Tata Group backing, while Flipkart and Amazon bring deep retail and technology experience.

This competition is good for customers because it brings discounts, faster delivery and wider product choice. But for companies, it can pressure margins. If everyone spends heavily on offers and expansion, profits can take longer to arrive.

Risks Investors Should Watch

Zepto’s IPO will attract attention because of its brand, speed and growth. But investors should read the final red herring prospectus carefully. Key risks include losses, high competition, employee and delivery workforce challenges, regulatory scrutiny, customer acquisition costs and the cost of running dark stores.

The company has also disclosed Enforcement Directorate summons to its co-founders in relation to information sought under FEMA-related proceedings. Reports say the founders appeared before the agency and submitted the requested information. This is an important disclosure, and investors should track any further updates through official filings.

Conclusion With Key Takeaways

Zepto’s planned Rs. 9,500 crore IPO could become one of India’s most watched new-age listings of 2026. It brings together quick commerce, startup investing, consumer behaviour and public market discipline in one story.

Key takeaways

• Zepto has filed updated IPO papers with SEBI and is targeting a July 2026 listing, according to reports.
• The IPO includes a fresh issue of Rs. 8,010 crore and an OFS by existing investors.
• Zepto was founded by Aadit Palicha and Kaivalya Vohra, with the brand starting in 2021.
• The company helps users by offering fast delivery of groceries and daily essentials, especially in busy cities.

Investors should watch profitability, competition, dark store economics and regulatory disclosures before making any decision.

Facts Input- ET, MC, MC& BS

Disclaimer

This article is only for information and education. It is not investment advice or a recommendation to apply for the Zepto IPO. Readers should check official IPO documents and speak with a certified financial advisor before making investment decisions.

Having an startup idea and implementing that idea into the real grounds are different things and each step taken by the startup needs crystal clear vision and to solidify that vision into reality founder needs funding flow to let visualize the idea.

Money is the fundamental resource to keep the lights on, to build strong team, to build the strong product, to market the product, gaining traction etc.

Raising money/funding may not have been required when you started building the company, but in later stages it is required to gain the sustained growth and traction. There are different types of investors in the market to fund the startups, however different stages are there to understand to get funded from the investors and venture capitalists.

The five stages outlined below provide a foundation to get you started-

1. Seed Capital

Seed capital is the first source of investment your startup requires. Seed capital as one of the first Startup Funding Stages may be sourced from channels such as friends and family (F&F), crowdfunding, credit cards, your personal savings, Syndicate funding (includes a startup, a lead investor and backers), P2P Lending Platforms. No matter whom you raise money from, there is no free money, and interest on their investment in your startup should be clearly defined. You should provide tangible deliverable and milestones and update them regularly on your progress. The purpose of the money you are raising at this stage is commonly focused on research and development for an initial product, or a minimum viable product (MVP). There are different seed accelerators who are potential options if above mentioned channels are not fruitful. In my view, accelerators are one of the best options available who invests in both your startup and your potential to develop and pitch your solution to potential investors. First take the time to prepare, research, and validate your idea then approaching an investor for a higher likelihood of acceptance is the best idea. Apart from accelerators, there are many of the venture capital firms also who are providing seed investments to the startups.

2. Angel Investment

After the seed funding a startup taken and created a minimum viable product through it, now the time comes to let your startup grow and to this you need to increase funding. This kind of funding is required towards product development, marketing, expand your team to keep up the momentum. For this, angel investors come as a solution. If your startup is raising money at this stage, your business model canvas should be proven. At this stage, angel investors not only help startups in funding point of view but also they help the startups gain success, provide strategic assistance as well as play roles such as advisers also. Angels are different from other investment entities such as Venture Capital firms since they are using their own money and should be treated as such when solicited for funding. They may invest individually or also pool their money with a group. Since the money raised at this stage can be significantly higher than in the seed round, investors will also expect a compelling and well-researched pitch as well as partnerships such as equities in the startups.

3. Venture Capital Funding

Venture Capital Funding comes after the angel investment where the size of such funding is much larger. It is used to scale the business to new business channels, customer segments, or to increase marketing efforts for additional customer acquisition. At this stage, your startup might be either profitable or could benefit from offsetting the negative cash flow with this new wave of investment while the business continues to grow. Multiple rounds of funding such as Pre-series A, Series A, Series B etc. may happen at this stage of funding, and investors may also join the organization and provide additional expertise. In this stage also, various offerings such as equity, SAFE (Simple Agreement for Future Equity), and convertible notes are provided to the investors/venture capital firms. Since VCs are investing other people’s money, their job is to make a sound investment in businesses that are likely to yield a meaningful ROI for their clients. VCs make a careful and critical examination of startups regularly, so when you pitch to them, be engaging and be prepared.

4. Mezzanine Financing & Bridge Loans

This is the stage where your startup seems to be growing significantly with a commercially available product, revenue should be coming in regularly although the startup is not yet profitable. The raised capital at this stage is used towards expansion of startup to new horizons, new mergers, new acquisitions, or the founders may be preparing for an IPO. Investors at this stage want to see a clear road-map towards profit shortly. For example, mezzanine financing can cover the expenses that an IPO involves. With the profits made from the IPO, the mezzanine investor is paid back with interest.

5. IPO (Initial Public Offering)

Very few startups reach at this point where for many this is not the end goal. IPO is an option to expand their business further. All of the investors who have invested their money for equity until this point will ideally recoup their investment along with additional profit, some investors may retain their shares, and some of them sell their stock at the beginning to reap the rewards of getting in early. After the IPO, stock options for a growing company can be leveraged to attract top talent and the increased access to capital can provide resources to push the momentum of your business forward. Planning for an should begin 24 months before since all such as reconstituting the board, setting corporate governance in place, raising a secondary round if required, identifying and discussing with merchant bankers, getting the documentation right takes time. IPO market way is the route where company is in high growth business and gaining profitability and revenues.

Also read- How to create/register a company for startups online in India.