Fundraising

Fundraising support for startups in India.

Get support around investor prep, document readiness, and the operational steps that make a round easier to run without the usual scramble.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed: 1 July 2026

Starting from Contact usTypical timelineFundraising support

Get support around investor prep, document readiness, and the operational steps that make a round easier to run without the usual scramble.

What is included

• Round prep
• Investor workflow
• Company readiness
• Document readiness review
• Post-allotment tracking support

Documents required

• Board and shareholder resolutions
• Valuation support and offer materials
• Cap table and investor list
• KYC and bank / escrow details
• Draft term sheet or rights issue working papers

Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis

• Section 42 of the Companies Act 2013
• Section 62(1)(a) of the Companies Act 2013
• Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules 2014

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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Route

Set the round path

We confirm whether the raise is a private placement, rights issue, or another equity route so the compliance path is clear.

Step 2Pack

Prepare the investor pack

The working pack brings together the deck, company documents, valuation support, and cap table so the story and the numbers agree.

Step 3Filings

Manage the filing sequence

We line up the offer documentation, resolutions, and post-allotment filing steps so the round can move without avoidable friction.

Step 4Post-close

Track the post-closing trail

After the round closes, we keep the allotment and filing record clean so diligence and future raises start from a better base.

AEO summary

Short answer: fundraising support helps you prepare the company, documents, and story before and during a round so investor conversations are easier to manage and track.

What fundraising support changes

Fundraising support is about reducing the number of moving parts that can go wrong during a round. When the company, documents, and story are aligned, investor conversations become much easier to manage.

It also prevents the usual scramble when a new investor asks for a document that nobody has reviewed in months.

• The offer route should be chosen early.
• The deck and records should tell the same story.
• Post-allotment filings should be tracked immediately after closing.

What a clean round process looks like

A clean process starts with the right route, then moves through the documents, the approvals, and the allotment trail without changing direction halfway through.

That makes the round easier to explain to investors and easier to support later if diligence questions come back.

• Private placement and rights issue rules are not interchangeable.
• PAS-4 and PAS-3 need to be aligned with the board approvals.
• The cap table should be updated as soon as the allotment closes.

Government fees

Fee breakdown

Item	Fee	Notes
PAS-3 return of allotment	As per MCA fee table	The filing fee depends on the authorised share capital and filing volume.
MGT-14 special resolution filing	As per MCA fee table	Applicable when the private placement or rights issue requires filing of the special resolution.
Offer / allotment support	As applicable	Stamp duty and banking costs depend on the transaction structure and jurisdiction.

Timeline

Typical turnaround

Typical timeline usually means a 2 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

Government fees depend on the route used for the round, the number of filings, and whether the transaction needs a private placement or rights issue path.

Related services

Keep the company moving

Company Valuation

Get a DCF/CCA valuation report that satisfies RBI, SEBI, and the Assessing Officer.

Due Diligence Prep

Prepare a clean data room before investors run financial and legal due diligence.

Investor Data Room

Build a structured data room with all the documents a VC diligence team asks for.

FAQ

Frequently asked questions

What is private placement and how does it apply to a startup raising a seed or Series A round?

Private placement under Section 42 of the Companies Act 2013 lets a private limited company issue securities to a select group of investors without making a public offer. The company must pass a special resolution, issue a PAS-4 information memorandum to each identified person, and limit allotments to a maximum of 200 allottees per financial year. Funds received must sit in a separate escrow account until allotment is complete, and a PAS-3 return of allotment must be filed with the Registrar within 15 days of allotment.

Why do investors in Indian startups typically prefer CCPS over ordinary equity shares?

Convertible Cumulative Preference Shares (CCPS) carry a liquidation preference that lets investors recover their capital before equity shareholders in a downside scenario. Under Section 55 of the Companies Act 2013, preference shares can be issued with terms specifying conversion ratios, cumulative dividend rights, and redemption conditions. The specific liquidation preference, anti-dilution protection, and conversion triggers are set out in the Shareholders Agreement and reflected in the company's amended Articles of Association.

What is Form PAS-4 and when must a company issue it?

PAS-4 is the private placement offer letter prescribed under Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules 2014. It must be addressed individually to each identified offeree and cannot be used as a general advertisement or circular. Under Section 42 of the Companies Act 2013, issuing the offer to persons not named in the special resolution, or using PAS-4 as a public solicitation, voids the compliance protection of private placement and can attract penalties.

Can a startup issue additional shares to existing investors through a rights issue instead of a fresh private placement?

Yes. Section 62(1)(a) of the Companies Act 2013 allows a company to offer additional shares to existing shareholders on a pro-rata basis through a rights issue. The offer letter must keep the window open for a minimum of 3 days and a maximum of 30 days, and must specify the right to renounce the offer in favour of another person. Rights issues are commonly used in bridge rounds or follow-on tranches from the same investor group where cap table simplicity is the priority.

What are the consequences of missing the 15-day PAS-3 filing deadline after allotment?

Under Section 42 of the Companies Act 2013, Form PAS-3 (return of allotment) must be filed with the Registrar of Companies within 15 days of each allotment. A late filing attracts additional fees under Section 403, and a significant delay can result in compounding proceedings under Section 441. Gaps in ROC filings also surface as a compliance red flag during investor due diligence, which is one of the most common issues that delays or derails a subsequent round.

Canonical reference: https://www.pvtltd.co/services/fundraising-support

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Ready to move this filing forward?

We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.

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