They came, they bought…and they invested

In the world of start-ups, there is no end to surprises, twists and turns. Here’s a new one. For some start-ups, customers are turning investors. Sounds uncanny?

Ask Vishwa Vijay Singh, co-founder of SaleBhai.com. “In January 2016, when we were just 4-5 months old, one of our customers called us and expressed interest in investing in our company as he liked our business idea. Initially, we didn’t think this was a great idea. But there is a saying among Gujaratis: ‘Never say no to money (except if it is from bad sources)’. So we talked to that person. Soon, I sent a mail to all our customers, asking whether they would like to partner with us. We received 20 inquiries; we finalised 10.”

SaleBhai is an Ahmedabad-based online marketplace engaged in delivery of sweets,

namkeen , snacks and local delicacies — made by well-known shops in particular cities and towns — to customers across the country. Singh says the company has zeroed in on 17 communities across the country, which it services by offering products typical to their part of the country.

According to Singh, SaleBhai enters into an exhaustive agreement with the prospective customer-investor and offers them shares. These shareholders can expect returns after the end of the third year.

The minimum investment size is ₹5 lakh and the maximum is ₹1 crore. However, the maximum investment SaleBhai has received so far from a customer-investor is ₹50 lakh.

The company’s customer-investors include well-placed persons in the infotech industry; they chip in by way of advice, says Singh. Some even have offered to join the firm full-time; in fact, one person has now joined the firm’s rolls.

Mini-IPO

And then there is Sagoon, a Delaware, US-based social e-commerce firm which helps connect like-minded people to share ideas and more. According to Swati Dayal, co-founder and Executive Director, the company is raising about $20 million through a Mini-IPO — a concept quite popular in the US. Small companies are allowed to garner up to $50 million through this route.

“Only registered users or fans/followers have applied for the Mini-IPO. We have given shares to 2,000 of them; 5,000 more have applied, and the process is on to give them the shares,” says Dayal.

Yet another company where customers have turned investors is Myles. The self-drive car-sharing company was started about three years ago with 14 cars. Today, it has 1,200 cars spread across 21 cities with a membership of 2.5 lakh.

Every car is allowed to remain on the platform for a maximum of three years. So, users get to use the car of their choice, for the period of their choice. Customers can also put their cars on Myles platform and get a return from it.

Now, if that doesn’t sound like having the cake and eating it too, what does?