Glossary
iSAFE (Indian SAFE)
A CCPS-based instrument with SAFE-equivalent commercial terms — the standard convertible for sub-₹2Cr Indian pre-priced rounds.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
iSAFE is a Compulsorily Convertible Preference Share (CCPS) structured with SAFE-like commercial terms — no interest, no maturity, converts at next priced round with valuation cap and/or discount. It was pioneered by 100X.VC in 2019 as an India-legal SAFE equivalent.
Unlike US SAFEs (which aren't enforceable under Indian company law), iSAFE is fully compliant because it's a CCPS — a recognised Indian equity instrument. Execution takes 4–5 days, legal costs are 30–60% lower than CCD, and Indian angels have grown familiar with the structure.
India Context
iSAFE is the dominant instrument for Indian pre-seed and angel-component-of-seed rounds in 2026. Typical Indian iSAFE caps: ₹12-25Cr at pre-seed, ₹20-40Cr at seed; discount rates typically 10-20% with 20% being most common. The instrument is widely accepted by Indian angels, micro-VCs, and increasingly by institutional seed funds.
The structure is simple: a single 5-10 page document amends the company's MoA/AoA to authorise the new CCPS class. RoC filings are minimal.
Example
Karthik raises ₹75L pre-seed across 4 angels using iSAFE with ₹15Cr cap, 20% discount, no interest, no maturity. Eighteen months later, his Series Seed closes at ₹30Cr pre-money. iSAFE converts at the ₹15Cr cap (better than 20% discount on ₹30Cr = ₹24Cr), giving collectively 4.5% of the company to the angels.
Frequently Asked Questions
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