Crowdfunding in India Trends and Forecast
The future of the crowdfunding market in India looks promising with opportunities in the food and beverage, technology, media and entertainment, real estate, and healthcare markets. The crowdfunding market is expected to grow with a CAGR of 14.7% from 2025 to 2031. The crowdfunding market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the emergence of crowdfunding platforms and more accessible avenues for entrepreneurs, artists, and creatives to secure funding for their projects.
• Lucintel forecasts that, within the type category, debt-based crowdfunding is expected to witness the highest growth over the forecast period due to the growing demand for debt-based crowdfunding by startup companies to raise funds quickly, compared to traditional banks.
• Within the application category, real estate will remain the largest segment due to the growing popularity of real estate investment trusts.
Emerging Trends in the Crowdfunding Market in India
India’s crowdfunding market is growing rapidly. This growth is led by the increasing popularity of online platforms, shifting investor preferences, and innovative technologies. Crowdfunding has become an effective tool for entrepreneurs, social initiatives, and individuals seeking support for various projects. With its young and technologically savvy population, India is witnessing rapid growth in its crowdfunding landscape, leading to new business and investment opportunities. Understanding the emerging trends is essential in this evolving market.
• Social Impact Crowdfunding Emergence:
Social impact crowdfunding has gained significant momentum in India, with people using crowdfunding platforms for education, health, poverty alleviation, and social development. It has revolutionized the crowdfunding space by applying it beyond traditional business funding. In this way, crowdfunding platforms are helping to collect funds for charitable purposes, making them more flexible and accessible for the community.
• Increasing Popularity of Equity Crowdfunding:
Equity crowdfunding is gaining popularity in India, where investors can buy shares in early-stage startups in exchange for capital. This is especially helpful for young entrepreneurs who may not have access to traditional financing methods. Equity crowdfunding platforms are growing in popularity among investors seeking high-growth opportunities in emerging sectors such as technology, fintech, and renewable energy. As regulatory frameworks develop, equity crowdfunding will open further doors for both investors and entrepreneurs.
• Use of Blockchain Technology:
Blockchain technology is emerging as one of the biggest game changers in India’s crowdfunding market due to the enhanced transparency and security of transactions. It is decentralized, ensuring safety from fund misuse on crowdfunding websites, and its openness helps build trust between project creators and investors. Blockchain is also bringing cryptocurrencies into use for crowdfunding, offering more methods of payment while increasing the global reach for fundraising. Thus, the use of blockchain contributes to the strengthening of the overall credibility and acceptance of crowdfunding across India.
• Crowdfunding and Startups- Innovation:
There is a budding startup ecosystem in India, and crowdfunding stands as an effective tool for supporting innovative ventures. Crowdfunding platforms provide startups with a direct route to investors who wish to support fresh ideas and novel technologies. Sectors such as AI, biotechnology, and renewable energy, which are capital-intensive ventures, often struggle to find funding. Crowdfunding offers a launching pad for testing ideas and acquiring the necessary resources to grow.
• Rise in Regulation and Legal Framework:
As crowdfunding continues to expand in India, the government is taking steps to regulate the market to ensure investor protection and maintain transparency. Recent discussions around implementing a structured legal framework for crowdfunding platforms are aimed at providing clarity on investor rights, tax policies, and compliance standards. The introduction of regulations is expected to boost confidence in the market, attract more institutional investors, and make the crowdfunding ecosystem more robust and sustainable.
Emerging trends in the Indian crowdfunding market, including social impact crowdfunding, equity crowdfunding, blockchain integration, startup support, and evolving regulations, are transforming the landscape and unlocking new opportunities for investors and project creators alike. By diversifying the crowdfunding ecosystem and making it more inclusive, transparent, and accessible, these trends will play a crucial role in driving market growth and innovation in the coming years.
Recent Developments in the Crowdfunding Market in India
India’s crowdfunding market is witnessing significant developments that are transforming its structure and the way capital is raised. Advances in technology, changes in regulation, and shifts in market dynamics have all contributed to the current crowdfunding landscape. These developments open new avenues for investors, entrepreneurs, and social initiatives, leading to a more robust and sustainable crowdfunding market.
• Launch of Government-backed Crowdfunding Platforms: The Indian government has implemented policies to support crowdfunding for social causes, especially within the education, healthcare, and rural development sectors. Government-sponsored platforms are considered more trustworthy, thus encouraging more citizens to engage with crowdfunding campaigns aimed at social causes. These platforms target both individual and institutional investors while fostering collaboration between the public, private, and social sectors to address critical issues.
• Building Fintech Crowdfunding Platforms: Fintech platforms in India are driving innovation in the crowdfunding space. These platforms help startups and small businesses raise funds from a variety of investors, circumventing traditional banking and financial systems. This development is particularly important for the fintech industry, as innovation and the adoption of technology are crucial for success. Crowdfunding platforms have provided much-needed capital to emerging fintech startups, accelerating their growth and enabling rapid scaling.
• Reward-based Crowdfunding Growing: Reward-based crowdfunding is very popular in India, especially in creative industries like arts, entertainment, and technology. Platforms allow creators to offer rewards, such as early access or exclusive experiences, in exchange for funding. Platforms such as Ketto and Wishberry enable this model. This development makes crowdfunding accessible to people with creative projects who may not be able to offer equity or repay loans. It allows small projects to gain support from a wide audience.
• Growing Interest in Crowdfunding Real Estate Projects: Recently, crowdfunding in real estate has become one of the most in-demand investment routes in India. Real estate platforms allow investors to pool funds for investing in commercial and residential properties. This has democratized access to real estate investments by involving smaller investors who can now join the property market and diversify their portfolios. Given the enormous growth potential of the real estate sector, crowdfunding is increasingly becoming a suitable option for funding property developments.
• Crowdfunding for Personal Causes and Medical Expenses: Crowdfunding for personal causes, especially medical expenses, has gained popularity in India. Platforms like Milaap and GoFundMe allow individuals to raise funds for personal emergencies, medical treatments, and other urgent needs. This trend is gaining momentum due to rising healthcare costs and the increasing number of people turning to crowdfunding for financial assistance. It has become a lifeline for those who may not have access to traditional loans or financial support.
Recent developments like government-backed crowdfunding platforms, fintech innovations, reward-based crowdfunding, real estate crowdfunding, and personal cause campaigns have led to an evolutionary change in the Indian market. These developments have opened up the ecosystem to accommodate diverse projects, meet various investor requirements, and transform the market into an avenue for further growth and innovation.
Strategic Growth Opportunities for Crowdfunding Market in India
India offers many growth opportunities in the crowdfunding market across various sectors. These opportunities are diversified into different industries such as technology, real estate, social impact, and healthcare. Understanding these applications will help investors and entrepreneurs grasp emerging trends and utilize crowdfunding to meet their financial needs.
• Crowdfunding for Technology Startups: IndiaÄX%$%Xs technology sector is booming, and crowdfunding has emerged as an essential source of capital for tech startups. Crowdfunding platforms provide early-stage companies with the resources needed to develop and scale their products. As the adoption of artificial intelligence, blockchain, and fintech solutions grows, technology startups are thriving with crowdfunding, where they can attract investors and validate their ideas before scaling.
• Real Estate Crowdfunding Growth: Real estate crowdfunding is a booming opportunity in India, offering access to large-scale property development. This trend provides opportunities for smaller investors to participate in the real estate market, an area that was previously open only to larger institutional investors. The growth of real estate crowdfunding platforms in India democratizes property investment, allowing a larger number of people to invest in real estate projects and diversify their portfolios, thus generating a passive income source.
• Crowdfunding to Finance Education and Skills: Education and skill development have remained major focuses in India, which is why crowdfunding for educational purposes has emerged as a strategic growth area. Platforms have made it possible for students, educators, and social organizations to fund projects like scholarships, skill development programs, and infrastructure improvements. With the demand for quality education rising, crowdfunding has filled this funding gap to support educational initiatives that might not otherwise be funded.
• Healthcare Crowdfunding Rise: Healthcare crowdfunding has rapidly gained popularity in India due to increasing healthcare costs and more people opting for healthcare crowdfunding to finance their medical needs. Increasingly, sites for medical crowdfunding are experiencing high engagement from contributors and investors. This represents a potential opportunity to promote those in critical need of healthcare while simultaneously raising awareness for healthcare needs in India.
• Social Impact and Community-based Crowdfunding: Social impact crowdfunding is a significant opportunity in India. There is increasing demand for funding solutions to mitigate social and environmental challenges. As more investors come forward to participate in crowdfunding for causes such as rural development, poverty alleviation, and environmental sustainability, it is changing the market and creating a space where businesses and individuals can directly contribute to societal betterment through crowdfunding.
The strategic growth opportunities in IndiaÄX%$%Xs crowdfunding market span technology, real estate, education, healthcare, and social impact. These areas of innovation provide access to capital across numerous sectors, offering avenues for funding various projects from entrepreneurs, social organizations, or individuals. This is reshaping the landscape of Indian crowdfunding, creating new growth and investment opportunities.
Crowdfunding Market in India Driver and Challenges
The Indian crowdfunding market is driven by a combination of technological advancements, economic factors, and regulatory changes. However, these drivers are accompanied by significant challenges that can hinder growth. Understanding the key drivers and challenges impacting the crowdfunding market is essential for stakeholders looking to succeed in this evolving space.
The factors responsible for driving the crowdfunding market in India include:
• Technological Advancements: IndiaÄX%$%Xs rapidly growing digital infrastructure has been the major driving force for crowdfunding. The widespread use of smartphones, internet access, and digital payment systems has brought entrepreneurs and investors closer to crowdfunding platforms. These technologies have streamlined the process of fundraising, making it easier for a broader audience and enhancing the user experience.
• Increased Entrepreneurial Culture: India’s entrepreneurial ecosystem is flourishing, with more startups emerging every year. Crowdfunding is seen as an alternative financing option for these startups, particularly in technology and innovation-driven industries. This increasing entrepreneurial spirit has spurred the demand for crowdfunding, as it offers businesses a way to raise capital without relying on traditional methods like loans or venture capital.
• Growing Socially Conscious Investing: Indian investors have begun to develop socially conscious investment strategies, where they seek investments that directly support causes such as health, the environment, and education. This trend in impact investment has led to growth in crowdfunding, targeting social causes through both financial and social returns. This factor is driving change in the market as society increasingly encourages funding for socially beneficial projects.
• Support from Government and Regulation: The Indian government is increasingly recognizing the potential of crowdfunding in driving economic growth and supporting social initiatives. Changes in regulations that streamline crowdfunding practices and ensure investor protection are building market confidence. Government initiatives and regulations will be key drivers of the future of the crowdfunding ecosystem in India, making the market environment more secure and stable.
• Increased Financial Inclusion: Crowdfunding is promoting financial inclusion in India, especially in underserved regions and sectors. Crowdfunding provides access to capital for individuals and businesses, filling the gap where access to financial institutions is restricted. As a result, more people are becoming involved in the economy, particularly in underserved populations.
Challenges in the crowdfunding market in India are:
• Unawareness of Investors: Crowdfunding is becoming more popular in India, but many prospective investors are still unaware of crowdfunding or its benefits. This lack of awareness poses a significant barrier to the growth of the market, as many investors lack complete information about the risks and rewards involved with crowdfunding. Therefore, more educational and outreach efforts are needed to increase the investor base and bring in more participants.
• Uncertainty Regarding Regulation: While the Indian government has implemented some regulatory measures, there is still uncertainty regarding the long-term legal framework for crowdfunding. The absence of clear, comprehensive regulations may deter potential investors and entrepreneurs from participating in crowdfunding platforms. The market needs more regulatory clarity to ensure stability and long-term growth.
• Fraud and Security Concerns: Security and fraud are significant concerns in the crowdfunding space. There have been instances of fraudulent campaigns and misuse of funds, leading to a lack of trust among investors. Proper due diligence and robust security measures on crowdfunding platforms can help overcome these challenges and build trust among participants.
Technological advancements, regulatory support, increased investor awareness, entrepreneurial innovation, and social media influence are driving the Indian crowdfunding market. However, issues such as lack of awareness, regulatory uncertainty, and security concerns must be addressed for sustainable growth. Once these challenges are overcome, crowdfunding can become a prime tool for financing innovation and social causes in India.
List of Crowdfunding Market in India Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, crowdfunding companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the crowdfunding companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Crowdfunding Market in India by Segment
The study includes a forecast for the crowdfunding market in India by type, investment size, and application.
Crowdfunding Market in India by Type [Analysis by Value from 2019 to 2031]:
• Reward-based Crowdfunding
• Equity-based Crowdfunding
• Debt-based Crowdfunding
• Donation-based Crowdfunding
• Others
Crowdfunding Market in India by Investment Size [Analysis by Value from 2019 to 2031]:
• Small and Medium Investment
• Large Investment
Crowdfunding Market in India by Application [Analysis by Value from 2019 to 2031]:
• Food and Beverage
• Technology
• Media and Entertainment
• Real Estate
• Healthcare
• Others
Features of the Crowdfunding Market in India
Market Size Estimates: Crowdfunding in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Crowdfunding in India market size by types, investment sizes, and applications in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different types, investment sizes, and applications for the crowdfunding in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the crowdfunding in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the crowdfunding market in India?
Answer: The major drivers for this market are the emergence of crowdfunding platforms and more accessible avenues for entrepreneurs, artists, and creatives to secure funding for their projects.
Q2. What are the major segments for crowdfunding market in India?
Answer: The future of the crowdfunding market in India looks promising with opportunities in the food and beverage, technology, media and entertainment, real estate, and healthcare markets.
Q3. Which crowdfunding market segment in India will be the largest in future?
Answer: Lucintel forecasts that debt-based crowdfunding is expected to witness the highest growth over the forecast period due to the growing demand for debt-based crowdfunding by startup companies to raise funds quickly as compared to traditional banks.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the crowdfunding market in India by type (reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation-based crowdfunding, and others), investment size (small and medium investment and large investment), and application (food and beverage, technology, media and entertainment, real estate, healthcare, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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