Startups can raise up to $3M from overseas
Govt. of India has now allowed every startup to raise $3 million or Rs 20 crore from foreign investors and lenders within a financial year. Technically, this funding can be done as external commercial borrowings (ECBs) from foreign based investors and lenders, and every startup (both B2B and B2C) can participate in this.
This funding can be taken in both Indian currency or foreign currency, as per the terms and conditions of the ECB.
Although a tiny step, this will help hundreds of early stage startups, which are either bootstrapped or looking for angel funding in various niches.
By the month end, RBI will issue a notification in this regard. more