This research examines the critical issues posed by emerging small-scale companies, also known as start-ups. In this research paper, the researcher has discussed the issues faced by Start-ups in raising capital. This study was conducted on the rising culture of entrepreneurship and its effects on society. Any start-up or company plan requires funding, and it is incredibly challenging for a start-up to present its ideas to shareholders and persuade them to invest in it.

This research explains the growth story of the most remarkable hotel industry in recent years, i.e., ОYО Hotels & Homes. ОYО has received significant funding from prominent investors, including the Japanese conglomerate Softbank Group and the American firm Airbnb. In India, this hotel chain now has over 1,70,000 rooms and claims to have seen а three times increase in transactions in the country year over year. Finally, The research is to understand the growth pattern of OYO in terms of its investment strategy and analyze the growing demand for affordable hotel services around the world.

1. Introduction

The appeal for "Make in India" from Prime Minister Narendra Modi has led to numerous transformations in India. While it is essential to concentrate on the industrial production trade export model for long-term economic progress, it is, however, the appropriate time to recognize the rise of a new class of businessmen who are demographically associated with a budding organization. Moreover, as increasing numbers of people reach a shared virtual marketplace via their phones, the entrepreneurs have started using the necessary possibilities.

The OYO rooms of Ritesh Aggarwal were among the first to recognize the possibility to resolve the issue of certainty and standardization by naming India's unbranded, approximate 88,000 crores budget hotel market. Aggarwal not only has earned himself strong recognition but has made significant investments in the hotel sector through the creative use of technology.

2. Objective:

This paper focuses on

1]Evaluating the various forms of financing available to start-ups.

2]Researching the government's stance toward promoting and financing new businesses.

3]Examine the reasons why start-ups struggle to manage their initial financing.

4]Research the changing developments in traditional employment to begin.

5] Studying about the start-up of OYO, how it has developed and invested.

3. Stages of Investing

Wherever you're in your start-up life, you must have money to keep your lights on and your team happy. It might not have been your dream to raise capital before the business was founded, but how far it goes will depend on your ability to do so. Understanding the various needs at any point of the financing would allow you to trust customers with a straightforward road to what you are all about. The following five stages provide a basis for starting a business.

3.1 Seed Capital

Seed funding is the initial source of investment. It includes sources such as banks of F&F (Friends and Family), crowdfunding's, credit cards, or your deposits, as well as networks reliant on you since childhood. Whomever you collect money from is not free, and interest in your start-up contribution should be explicitly specified. Aim to deliver and update concrete results on your success periodically. The goal of the money that you collect now is generally to investigate and grow the original product or a Minimum Viable Product, whether you have one.

If the funding sources described above aren't available, seed accelerators such as Y-Combinator, TechStars, and 500 Start-ups are potential options. Take the time to prepare, research, and validate your idea before approaching an investor for a higher likelihood of acceptance.

3.2 Angel Investor Funding

Angel Investors provide boosts to start-ups and either scale or increase capital to produce products, ads or merely extend the staff to hold it up. In this phase, the business model should be proved if your company is raising capital.

Accredited investors are entities with a net valuation of at least USD 1 million and an annual benefit of at least 200,000 (two hundred thousand) independently or three thousand following a partner, as described by the SEC. Angels vary from most investment companies, for instance, Venture Capital companies, because they use their own funds and can be treated for financing. One may either invest independently or pool the money together with a group.Since the money raised will be considerably more significant than in the seed round at this point, creditors also expect a sophisticated pitch.

3.3 Venture Capital

Venture Capital Financing may provide funding to expand the enterprise to new channels, client groups or enhance consumer growth marketing activities. At present, the start-up is either successful or will benefit from the negative cash flow rewards from this latest investment wave as the enterprise continues to expand. Several funding rounds can take place at this point, and investors may also provide additional experience and membership in the association.

Wait for due diligence from the future partners and be willing to answer all manner of queries and questions. Learn about the different deals currently available, such as bonds, Secure (Simple Future Equity Accord), and convertible notes. Given that VC invests the capital of others, its duty is to invest soundly in companies that would probably deliver significant ROIs for their customers. VCs routinely veterinary start-ups, so be committed and trained as you pitch to them.


Venture capital investment enters the scene after the company's final goods, or services hit the market. Irrespective of the viability of the goods, every company considers using this point, which entails multiple rounds of funding:

Series A

Series A investment is the first round of financing; it would not require outside funding. Start-ups have developed a clear strategy for their product or service at this stage. It is mainly used for promotion and brand credibility and tapping new audiences, and assisting with business growth.

Series B

When a company depends on Series B funding, it shows that the product is well sold and consumers are using the product or service as planned. In addition, such financing