Angel Funding for Startups in India
Raise compliant angel rounds with DPIIT recognition, Section 80‑IAC tax holiday eligibility, and post‑FY25 relief from the erstwhile ‘angel tax’
Quick Stats
About Angel Funding
Angel funding bridges pre‑seed to early institutional rounds through individual angels and SEBI‑registered Category I Angel Funds, typically investing via equity or CCPS with pro‑rata and governance rights. DPIIT‑recognized startups also access tax and regulatory benefits that ease fundraising and compliance. [9][1]
The Finance Act (No. 2) 2024 removed Section 56(2)(viib) (‘angel tax’) effective April 1, 2025, eliminating tax on share premium receipts for qualifying issuances, while startups must still comply with valuation, FEMA, and disclosure norms. Section 80‑IAC tax holiday remains separately applicable on profits subject to conditions. [3][4]
SEBI’s revised framework increasingly aligns Angel Funds with accredited investors and enhanced governance, expanding professional angel capital while improving investor protection and transparency. [9][12]
DPIIT Benefits
Recognition streamlines exemptions, procurement relaxations, and access to tax holiday under Section 80‑IAC (subject to IMB).
Angel Instruments
Equity/CCPS, CCD/SAFE‑like notes for bridge; standard rights on pro‑rata, information, and protective provisions.
Angel Funds
SEBI Cat‑I Angel Funds route pooled angel money; onboarding now centered on accredited investors with phased transition.
No Angel Tax
Section 56(2)(viib) removed from April 1, 2025; valuation fairness and FEMA compliance continue to apply.
Success Stories
"Closed an angel‑led seed with clean DPIIT recognition and FEMA‑compliant pricing; scaled GTM rapidly."
Finlytics AI
B2B Analytics
Funded: ₹3 Cr
"Angel Fund syndicate brought governance discipline and opened doors to top agritech partners."
KisanCloud
Agri SaaS
Funded: ₹1.2 Cr
"Structured CCPS round with clear milestones and ESOP pool unlocked a strong hiring plan."
MediWear
Smart Wearables
Funded: ₹2.1 Cr
Ready to Get Started?
Let our experts guide the entire process and get funding approved in 45 days.