India's equity based crowdfunding is model where the project promoter offers a share of the profits to the crowd investors. In other words investors receive a stake in the company which means that they receive a share of the profits.
In India, in the past wealthy individuals and business angels, had the possibility to invest in start-ups. Indian equity crowdfunding platforms have made this option of lending more popular by opening the door to a larger number of public investors.
Indian equity based crowdfunding contains several risks for investors but also for project creator as the first will risk cash in a project and the first may lose control on the company.