Document background
The Revenue Sharing Investment Agreement is a specialized investment instrument used when traditional equity or debt financing structures may not be suitable or desired. This document is particularly relevant in the Indian market where alternative investment structures are gaining popularity, especially among startups and growth-stage companies. It provides a framework for investors to participate in a company's success through revenue sharing rather than equity ownership, while complying with Indian regulatory requirements. The agreement typically includes detailed provisions for revenue calculation, payment mechanisms, investor protections, and reporting obligations, all structured within the Indian legal framework. It's particularly useful for companies with predictable revenue streams seeking growth capital without diluting equity or taking on traditional debt obligations.
