Crowdfunding in India is as old as Indian culture itself. Since ancient historical times, the people of India have given generously to community and religious events and projects, with the members of the country’s populace each donating small amounts to raise a large total to finance the said project. The difference in modern times is that crowdfunding in India has gone online and is enabled by technology and the power of the internet.
In modern times, crowdfunding in India operates like this. A campaigner starts a fundraiser (this is usually free of cost) on a fundraising India platform, and when it is approved, starts sharing the campaign link on social media handles like Facebook and WhatsApp, asking friends and family members for donations. Sharing the fundraiser improves its visibility among the online community of compassionate donors, and helps facilitate the quick and convenient donation process.
In India as of now, the largest share of all crowdfunding campaigns are medical crowdfunding efforts. This is not surprising because most Indians do not have medical insurance coverage plans. Most have income levels that do not let them qualify for bank loans in the face of medical emergencies that also imply that big expenses are around the corner. These middle-class families are turning more and more often towards crowdfunding, which is a financing option that involves no outlay and presents no risk, and has the best advantage which is that it involves no payback. Donors make gifts based on pure goodwill with no expectation of getting anything back.
NGOs in India also crowdfund for social change projects encompassing a myriad projects of many descriptions, some large and some small, but all benefitting some or the other segment of the Indian common folk.
The future of crowdfunding in India is only set to grow. This has to do with the growth of technology, and experts’ prediction that internet penetration even in India’s rural regions is only set to grow with geometric progression in the coming decade. Since government spend on healthcare is not going to similarly be on the rise, it is reasonable to predict that the average Indian will continue to turn to crowdfunding to help meet medical bills. Likewise, NGOs will continue to fill gaps in governmental work at the social and cultural level by using crowdfunding solutions for problems in these sectors.