Question:medium

Aditya Verma, the founder of a 'Fintech' startup, wanted to raise funds for expanding his digital lending platform. Instead of approaching the general public, he decided to directly sell securities of his company to a limited number of sophisticated investors including Life Insurance Corporation of India, General Insurance Corporation of India, and Army Group Insurance. The method of raising capital used by Aditya Verma was:

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Private Placement is a popular fundraising method for startups because it allows them to raise large amounts of capital quickly. It bypasses the costly, time-consuming regulatory filings and public disclosure requirements of an IPO.

Updated On: Jun 18, 2026

Public issue
Rights issue
Private placement
Offer to the employees

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The Correct Option is C

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The Correct Option is C

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