Pratheeksha V
Crowdfunding has quietly become one of the more interesting stories in India's financial landscape over the last decade. What started as a fairly niche way for artists and NGOs to raise small sums online has grown into a diverse ecosystem that touches medical fundraising, startup financing, creative projects, and even early-stage equity investment. This paper looks at how crowdfunding platforms operate in India, the different models they follow, the major players in the space, and the regulatory patchwork — spanning SEBI, the RBI, and the Companies Act — that shapes what is and is not allowed. Drawing on secondary data from industry reports and legal commentary, the paper argues that while donation and reward-based crowdfunding have flourished largely unregulated, equity crowdfunding remains stuck in a grey zone that has not been fully resolved even after more than a decade of regulatory discussion. The paper closes with a discussion of the opportunities this sector presents for India's entrepreneurial and social sectors, the risks it poses to unwary contributors, and some thoughts on where the regulatory framework might be headed. Keywords: crowdfunding, India, fintech, SEBI, alternative finance, startups, social fundraising, peer-to-peer lending, equity crowdfunding, financial inclusion