How to get funding for food startups in India?

The backbone of any business is the capital without which the business can neither begin nor thrive in a proper manner. In the present scenario, start-ups are quite in-vogue and entrepreneurs are actually encouraged to think outside of the box to come up with interesting ideas.

Among the start-ups, the food sector is quite attractive for the investors. This is because the Indians are in love with foods and have a wide array of cuisines to taste and praise. So, if the start-ups serve foods or drinks with a twist or two, this will be hugely appreciated. If you have a yummy plan and have chalked out the design already, you must now concentrate on raising the funds. As without the proper investment, any idea will fall flat.

How to raise funds?

The capital of a business is not a petty sum. So, you must venture forward with proper planning so as to make the most for your dream. There is no dearth of good investors for a promising project; you just need to know which doors to knock. A sincere appeal will definitely reach out to the experienced people who know how to judge potential.
You can accumulate the fund in various ways from different options depending on the nature and suitability of the same.

Fund-raising Facts

Pointed below are some options where you will get sure-shot success.

  • Self-funding or bootstrapping- Of all the ways available, this one is perhaps the best with many benefits. When you use your own savings or money to start your venture, then that is called bootstrapping. This not only keeps the headache of paying interests away and also binds you with your work. You can also include your friends and family to fund your business. They are the ones who know you and will definitely believe in you. Let them see the hunger in you and keep them properly updated so that they know you are not wasting the precious notes. The advantage of this funding is that the trust factor is high but interest rate low and in time of adversities, the business will still be there within the family.
  • Crowd-funding- You can also opt for this new yet effective process which again has its own pros. Crowdfunding means, engaging a crowd to pay for your business because they are interested in the project and see promise in you. You need to clearly describe your idea and requirements in the platforms of crowdfunding or social media to make the people aware. Interested people after taking virtual pledge donate an amount of money. This not only gathers a good amount of money but since your business is introduced to a competitive platform, you get to witness a trailer of the popularity. In this way, you also do marketing for your start-up even before it exists in brick and mortar., Fundmydream, Wishberry, Pik a Venture etc. are some crowdfunding platforms.
  • Competitions- In India, yearly business competitions are held participating in which you can win the prize money and also many followers.
    Register yourself, exhibit your business idea and if you win, you get to take home a handsome sum. Moreover, this also promotes your brand name with better networking and pinpoints loopholes (if any).
  • Banks Another trusted resort which has a huge lot of money to invest in any and many businesses. But since this has a tiring procedure and is quite tough to please, so not many people like going this way.
    But if you are in need of money to begin your work with no investors, try the bank out. You will require a good business plan with collateral property in lieu of which the bank will sanction the loan. It will charge an interest rate of 11 – 13% with heavy paperwork and documentation. So, if all these factors don’t bother you, then definitely borrow from them.
  • Angel Investment- There are some individuals with a hell lot of money and the will to invest in upcoming talents with dreams in their eyes. These people are known as Angel Investors. Sometimes they work in a network and so collectively look after the projects.
    If you are able to find one such investor, then you ought to be very lucky. Because when they lend you, they not only offer money but also valuable instructions, information, and guides about business. You will find many such people in India.
  • Government Programs- Other than all these options, the current government of India has made some arrangements welcoming the start-ups. It acknowledged that this type of business has a promising future. So, you can search about the schemes and programs to see if anything fulfills your criteria or not. With MUDRA- Pradhan Mantri Micro Units Development and Refinance Agency Limited, you can make your dream come true. After the submission of your business plan, if your loan is sanctioned, then you will a MUDRA card to bear all your expenses. Tarun, Kishor, and Shishu are three types of scheme available.
    Apart from this, various state governments also offer help and assistance in various forms for helping the upcoming businesses.

These are the primary choices for any entrepreneur to kick-start his/her job. Other than these, you can go to Venture Capitalists but they risk money only on successful projects. So, try them if you are thinking of extending your line-up.
If you are in instant need of money, you can sell some assets and capitalize on that sum with the hope that you can again buy that back when fortune returns. Business credit cards can also serve your purpose but be very attentive about the building up credits; it can mar your reputation.


No obstacle is hard if your will is strong. Talents know how to survive even in adverse situations. The future of food-start ups is quite bright. So, if you are confident enough about your plan, then borrow using any of the above-mentioned processes and be ready to satiate the appetite of the customers!

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