When you need to raise money quickly without spending weeks on valuation and heavy paperwork, Convertible Notes are the best option. In the US, these are very similar to iSAFE notes. They are designed for speed and simplicity, making them the fastest way to get funds into your company.
Service: Convertible Notes
What makes Convertible Notes different?
A Convertible Note is a debt instrument that either gets repaid or turns into equity shares later. It is much faster than issuing CCPS or CCDs because you don’t need a formal valuation report from a Registered Valuer to start.
Convertible Notes vs. CCD: What’s the difference?
While both are debt that turns into equity, Convertible Notes are much easier to handle for early-stage startups.
| Feature | Convertible Notes | CCD |
| Speed | Fastest: Very little paperwork. | Slower: Requires more filings and approvals. |
| Valuation | Not needed at the time of raising money. | Required upfront to set the price. |
| DPIIT Startup | Mandatory: Your company must be a DPIIT-recognized startup. | Not required. |
| Ticket Size | Minimum ₹25 Lakhs from a single investor. | No minimum limit. |
| Paperwork | Only an Agreement and Form MGT-14. | Requires PAS-4, PAS-3, and Valuation Reports. |
The Main Requirements
To use this “express” route for fundraising, you must meet these two conditions:
DPIIT Recognition: Your company must be registered as a “Startup” with the Department for Promotion of Industry and Internal Trade (DPIIT).
Minimum Investment: An investor must put in at least ₹25 Lakhs in a single payout.
The “No-Fuss” Execution Process
We handle the legal and secretarial steps so you can focus on your business. Since there is no valuation or allotment form (PAS-3) required at this stage, the process is incredibly lean.
The Agreement (Legal): Our lawyers draft the Convertible Note Agreement. This includes the “Discount” the investor gets and the “Cap” (maximum valuation) for when the note turns into shares later.
Board & Shareholder Approval (CS): We pass the resolutions to authorize the borrowing through Convertible Notes.
ROC Filing (CS): We file Form MGT-14 with the Registrar of Companies to record the terms of the notes.
Money Transfer (Founder): The investor sends the funds (minimum ₹25 Lakhs) directly to your bank account.
How long does it take?
Drafting & Approvals: 3–5 days.
Filing MGT-14: 2 days.
Total Time: Usually under 1 week.