Dealplexus

Why we picked it This is the piece that makes the SAFE-vs-priced question concrete for an Indian founder, where a US SAFE has no legal standing and the iSAFE runs through CCPS anyway. It puts rupee numbers on the tradeoff (75k to 2.5L legal for a convertible note versus 5L to 15L for a priced round) and flags the compliance landmines, DPIIT registration, the 25 lakh minimum ticket, Form CN within 30 days, and angel tax.

Convertible Notes vs SAFE vs Equity: Which Instrument Fits Indian Seed Rounds

From Dealplexus by Dealplexus 14 min read

• A US-style SAFE is not recognised under the Companies Act or FEMA, so the Indian equivalent (iSAFE) is issued as CCPS, which is why a priced CCPS round is often already the default
• Legal cost gap in rupees: 75k to 2.5L for a convertible note versus 5L to 15L for a priced round, closing in 2 to 4 weeks versus 6 to 12
• Watch the India-only compliance: DPIIT recognition, 25 lakh minimum ticket, Form CN filing within 30 days for foreign money, and angel tax under 56(2)(viib) for resident investors