Four pathways, four sets of rules.
There is no single Indian law that lets everyone invest in a local business. There are several routes, each with its own limits on who may take part. Here is each one, honestly described.
Read this first. Only Pathway One is operating today. Pathways Two and Three require registrations we do not yet hold, and nothing is being offered under them. We would rather look smaller than we intend to be than imply approvals we do not have.
Private Placement Syndicate
A closed, invited group of experienced private investors
- Investors subscribe directly to shares or convertible instruments issued by the business, under Section 42 of the Companies Act, 2013
- Money moves from the investor to the company's own bank account. InvestMyCity never holds or routes it
- Capped at the statutory limit of 200 subscribers per company, per class of security, per financial year
- Offer documents go to named individuals only. Nothing is offered publicly, here or anywhere else
- Our fee is paid by the business raising capital and disclosed to investors before they commit
Angel Fund
Accredited Investors, as defined by SEBI
- A pooled vehicle intended to be registered with SEBI as an Angel Fund under the Alternative Investment Funds Regulations
- Since SEBI's 2025 revisions, participation in Angel Funds is restricted to Accredited Investors
- Accreditation is granted by SEBI-recognised agencies against income and net-worth tests — we can explain the process
- Capital is committed to the fund rather than to individual deals, and deployed under a disclosed, non-discretionary policy
- Pooling money is lawful inside a registered fund and unlawful outside one. That distinction is the entire reason this pathway exists
Social Finance
Anyone who wants to back their city — from ₹1,000
- Social enterprises and non-profits raise funds on SEBI's Social Stock Exchange through Zero Coupon Zero Principal instruments
- SEBI has set the minimum subscription at ₹1,000, which makes participation genuinely open rather than symbolic
- ZCZP instruments return neither principal nor interest. This is structured, audited philanthropy — not investment
- Funds are tied to reported outcomes, verified by an empanelled Social Auditor
Public Listing
Public market investors, once a business is ready
- Businesses that reach scale can list on the SME platforms of the recognised stock exchanges, where anyone may invest
- We work on listing readiness — governance, audited financials, structure — not on the issue itself
- Issue management is done by SEBI-registered merchant bankers. We are not one and do not act as one
- This is the point at which a local business becomes something the whole city can genuinely own part of
Who can use what.
| Pathway | Who may participate | Typical commitment | Nature of instrument | Status |
|---|---|---|---|---|
| Private Syndicate | Invited private investors, KYC verified | Set deal by deal | Equity or convertible instrument in one company | Open |
| Angel Fund | SEBI Accredited Investors only | Committed to the fund | Units of a registered AIF holding several companies | In preparation |
| Social Finance | Open to all | From ₹1,000 | ZCZP — no principal, no coupon returned | In preparation |
| Public Listing | Open to all public market investors | As per issue lot | Listed equity | Future |
Regulatory criteria are set by SEBI and may change. Verify current requirements before relying on them.
What actually happens, in order.
If you are a business
Apply
Tell us what you do, what the capital is for, and what the last two years look like. No fee.
Assessment
We review financials, compliance, ownership and the requirement, then tell you honestly whether this is fundable now, later, or not at all.
Readiness
Where there are gaps we close them — accounts, cap table, governance. Paid work, quoted before it starts.
Introduction
The prepared opportunity goes to relevant members. Terms are negotiated between you and the investors directly.
Completion
Approvals, offer letter, allotment and filings in the prescribed forms and timelines. Money reaches your company's account.
If you are an investor
Register
Tell us who you are and where you are. This registers interest only — it creates no offer and no obligation.
Verification
KYC, and where a pathway requires it, confirmation of Accredited Investor status through a recognised agency.
Access
Once verified you can see prepared opportunities inside your logged-in account. Never on a public page.
Your own diligence
You get the file. You ask your own questions, meet the promoter, and form your own view. We do not recommend.
Subscription
If you proceed, you receive a private placement offer letter in your name and transfer funds directly to the company.