Handled by Lekha
Build your startup on a structure investors trust.
From DPIIT recognition and ESOP design to financial modelling, startup valuation, and investor-ready compliance — Lekha handles the foundational financial and regulatory work so you can build the product.
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What is startup advisory?
Startup advisory is the institutional financial and regulatory guidance that most founders only access after making costly early mistakes. Lekha brings it to pre-seed and seed-stage companies before those mistakes happen: DPIIT recognition for tax-holiday eligibility and loss carry-forward, a well-designed ESOP, a defensible financial model and startup valuation, and investor-ready compliance with all statutory documentation in order from day one.
Who it's for
Is this right for you?
- First-time founders needing DPIIT recognition before their first priced equity round
- Co-founders setting up ESOPs and needing a defensible exercise price valuation
- Pre-seed startups building their first financial model and investor data room
- Companies preparing for a seed round who need advisory and statutory valuation reports
- Startups that need compliance, due diligence readiness, and statutory valuation documentation before investor diligence
When you need this
- You're raising a priced round and need a Registered Valuer report under Section 62(1)(c)
- You're granting ESOPs and need both the plan documentation and the Rule 3 perquisite valuation
- An investor has asked for your financial model, cap table, and a statutory valuation certificate
- You want a defensible startup valuation before entering investor conversations
- You need your compliance and due diligence documentation ready before investors' legal counsel checks
What you get
Key benefits
DPIIT recognition from day one
Recognition unlocks Section 79 loss carry-forward despite shareholding changes, self-certification under several labour laws, IPR benefits and Seed Fund access, and establishes eligibility for the Section 80-IAC tax holiday. We prepare and file the complete application — typically approved within 5 business days.
Financial model and startup valuation that survives investor scrutiny
A bottoms-up 3-year financial model plus an advisory startup valuation — giving you a defensible number before investors propose their own. For statutory compliance (Rule 11UA), we coordinate the right merchant banker.
ESOP that works at the next round
ESOP pool sizing, vesting schedule, exercise price structure, plan documentation, and coordination of the merchant banker valuation — designed to survive Series A investor scrutiny.
Compliance and due diligence ready before investors check
Statutory registers, ROC filings, compliance calendar, due diligence document organisation, and statutory valuation reports — all in order before investors' counsel asks for them.
Common questions
Frequently asked
What is the difference between an advisory valuation and a statutory valuation?
An advisory valuation (prepared by Lekha) is a professional opinion of your startup's value using DCF and comparable transaction methods. A statutory valuation must be signed by the professional the relevant law specifies — a SEBI-registered Category I Merchant Banker for Income-tax valuations (ESOP perquisite under Rule 3, Section 56(2)(x), Section 50CA), or an IBBI Registered Valuer for Companies Act valuations (priced rounds under Section 62(1)(c), ESOP trust funding, sweat equity). Lekha prepares the advisory valuation and coordinates the statutory valuation through the qualifying professional.
What is DPIIT Startup India recognition and what does it give me?
DPIIT recognition is a government certification that your company qualifies as a startup under the Startup India initiative. Key benefits: carry-forward of losses under Section 79 despite a change in shareholding, self-certification compliance under several labour laws, IPR and Seed Fund benefits, and eligibility for a 3-year income tax holiday under Section 80-IAC — the holiday itself requires a separate Inter-Ministerial Board certificate. Note that Angel Tax (Section 56(2)(viib)) was abolished by the Finance Act 2024 with effect from 1 April 2025, so it is no longer a reason to seek recognition. To qualify, your startup must be less than 10 years old with turnover under ₹100 crore.
How should co-founders split equity, and what is a vesting cliff?
The structure most institutional investors expect: 4-year total vesting with a 1-year cliff. The cliff means no equity vests until a founder has been with the company for 12 months — after that, 25% vests immediately, and the remaining 75% vests monthly over 36 months. Lekha documents this in the ESOP plan and founders agreement with proper board and shareholder resolutions.
What is an ESOP pool and when should I set one up?
An ESOP pool is a reserved block of your company's shares for granting to employees and advisors. Most institutional investors at seed and Series A require a pool of 10-15% to be established pre-money. The exercise perquisite for ESOPs must reflect a statutory valuation by a SEBI-registered Category I merchant banker (Rule 3) — Lekha coordinates this as part of the ESOP design engagement.
What does investor-ready compliance and due diligence mean in practice?
It means your company passes investor and legal due diligence without delays: all ROC returns filed, statutory registers maintained, IP properly assigned, compliance calendar current, due diligence documents organised in a shareable folder, and statutory valuation reports obtained. Lekha sets up all of this as part of the engagement.
When do I need a statutory valuation vs an advisory valuation?
You need a statutory valuation before: (1) any priced round issuing new shares — an IBBI Registered Valuer report under Section 62(1)(c) with Rule 13(1); (2) every ESOP exercise event — a Category I Merchant Banker certificate for perquisite FMV under Rule 3, valid within 180 days of the exercise date; (3) trust-funded ESOP pools or sweat equity — a Registered Valuer under Rule 16(1)(c) or Rule 8. You need an advisory valuation for investor negotiation anchoring and internal planning. Lekha delivers the advisory valuation and coordinates the statutory merchant banker valuation.
Complete DPIIT recognition application for the Startup India programme — self-certification compliance, loss carry-forward under Section 79, IPR benefits, and Seed Fund and GeM access. Recognition establishes eligibility for the Section 80-IAC tax holiday; the holiday itself requires a separate Inter-Ministerial Board certificate.
ESOP pool design, vesting schedule, exercise price structure, and plan documentation. Statutory perquisite valuation at exercise by a SEBI-registered Category I Merchant Banker holding valuation-activity registration. Trust-funded pools and sweat equity additionally require an IBBI Registered Valuer.
3-year financial model, advisory startup valuation (DCF + comparables), unit economics, and the complete financial data room package investors examine before writing a cheque. Advisory and investor-facing only — not signed by a Registered Valuer or Merchant Banker, and not valid for ROC filings, Companies Act allotments, or Income-tax purposes.
End-to-end investor readiness: compliance calendar, statutory register maintenance, due diligence data room preparation, and coordination of any statutory reports your round requires — a Registered Valuer report for a priced round under the Companies Act, and CA-certified filings where past filings are overdue.