Revealed: Here's How Indian Startups Are Getting Financial Aid

BENGALURU: In India, start-ups are on a rise as there is a head to head competition amongst the companies to become the most popular brand known out there. As they keep climbing up the ladder, their need for a sound financial advisor becomes imminent and only then the company starts searching for a Chief Financial Officer (CFO), which is crucial but a very expensive task, according to businessinsider.in.

Any start-up requires CFO’s to look after th financial database of their company. To hire a CFO is an expensive one and to find a fulltime CFO is much more than that. Companies which are initially starting up have a lesser need for CFO’s but they might be needing them as the company grows. One should know that, typically in a start-up, e-CFOs help the companies prepare their books and business plans for raising funds from the investors.

Now days, the virtual CFOs look after the financial functions of a company but are also responsible for meeting the strategic requirement of any start-ups. The rapid increase in demand for a virtual CFO over a full time CFO is that a full time CFO demands higher packaged salary while an e-CFO is paid as per the assignment.

 The cost of utilizing the expertise of  an e-CFO can range from Rs 25,000 to Rs 2 lakh a month while a CFO on payroll generally draws a salary of around Rs 5-6 lakh per month. So, a start-up cannot afford such a full-time budget and hence opts for a virtual CFO. With start-up culture on a ride and young entrepreneurs coming up with new ventures, virtual CFOs will be one of the most demanded services in the market.

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