Start-ups like us typically should raise debt when they are either running short-of-cash, or to fund working capital gap, or to fund acquisitions or to meet day-to-day business activities.
A company which is getting closer to profitability has the option to raise either equity or debt. Equity will lead to dilution, but you can pay-off debt through your balance sheet.
Bloomchemag is profitable on contribution margin level, but now we need to achieve a scale where we can cover our fixed costs. Our burn is reducing consistently.
Debt seems a better instrument for us to meet working capital requirement to achieve profitability. Hence, debt comes into play so that we can scale up rapidly.
We like to get in touch with potential investors to discuss on above!!
11th June, 2013
BloomchemAG Private Limited, due to its innovative business model, had been selected for incubation by Amity Innovation Incubator((http://amity.edu/aii/Incubatee_Companies.html), ),which is supported by Dept. of Science & Technology, Ministry of Science & Technology, India.
Amity Capital Ventures (ACV), New Delhi (India), which closely works with Amity Innovation Incubator, supports its investment companies by way of constant mentoring and other value-addition services to ensure success in the market. ACV is an early stage investment vehicle with focus on investing in start-ups and SMEs with primary investments by way of equity and quasi-equity instruments and is currently evaluating to pick minority equity stake in BloomchemAG Private Limited.
We have moved to our current own office since 3rd April 2017.