Frequently Asked Questions
What is your company?
Mela Artisans is a mission-driven brand and artisanal sourcing platform. They design and source lifestyle products that are crafted by artisans in India using heritage techniques. Over the past 13 years, Mela has built an industry-leading supply chain made up of an extensive network of artisans. They focus on female empowerment and sustainable community impact. Mela has become a sought-after brand to fast-growing US retailers while expanding to Amazon and other e-commerce platforms.
Why should I invest?
Mela Artisans presents an attractive investment opportunity due to its unique combination of social impact and strong market potential. The company's commitment to preserving traditional Indian craftsmanship and empowering artisans, particularly women, aligns with growing consumer interest in ethical and sustainable products. With a robust supply chain and strategic partnerships, including with the giant Reliance Industries, Mela is poised for significant expansion, targeting a $30M run rate by 2026. Its diverse product range, presence in major retail and e-commerce platforms, and plans for further category expansion and international growth enhance its appeal. Additionally, Mela’s experienced leadership team, adept in retail and e-commerce, is well-equipped to drive the company's growth. This mix of social responsibility, market readiness, strategic partnerships, and growth potential makes Mela an enticing option for investors looking for both financial returns and positive social impact.
It’s a cool idea but how will you make money?
We plan to be profitable in 2024 and beyond and growing revenue with ambitious growth projections. We can make even more by expanding into more retail stores and into e-commerce channels.
How do I know people are going to buy your solution?
People are already buying these products and leaving rave reviews.
How do I know you haven’t peaked and there are more opportunities ahead?
We have an ambitious growth plan. Diversifying into new product categories like textiles, furniture, and kitchenware can broaden their market appeal. By tapping into international markets, especially with the support of their partnership with Qalara, we can reach a wider global audience. Strengthening our online presence on e-commerce platforms and enhancing our direct-to-consumer channel can capitalize on digital shopping trends. Expansion into more retail channels, including mass and specialty retail, can increase our market footprint. Collaborations with well-known brands and designers can boost brand visibility and attract diverse customers. Investing in technology, emphasizing sustainable practices, and scaling our artisan network can ensure quality and align with consumer values. Additionally, targeted marketing and improved inventory management can enhance customer satisfaction and brand competitiveness. These growth avenues position Mela Artisans well for a substantial increase in scale and market presence.
If this is such a great idea, a bigger company would’ve already done it, right?
Some companies have done similar things, like Mbare with African artisans. But sourcing craftwork from Indian artisans is not so simple and takes a specialized team to make it happen. It also helps that Mela has a mission to help artisans and women in India, which drives their approach, whereas larger companies are likely uninterested in fulfilling such a mission.
Why wouldn’t someone invest? What are they scared of?
People may not see the scope of the opportunity, and need to emphasize their financial traction and opportunity ahead
What would an angry subreddit thread say?
I don’t think there will be any trolls for this
Why invest in startups?
Regulation CF allows investors to invest in startups and early-growth companies. This is different from helping a company raise money on Kickstarter; with Regulation CF Offerings, you aren’t buying products or merchandise - you are buying a piece of a company and helping it grow.
How much can I invest?
Accredited investors can invest as much as they want. But if you are NOT an accredited investor, your investment limit depends on either your annual income or net worth, whichever is greater. If the number is less than $124,000, you can only invest 5% of it. If both are greater than $124,000 then your investment limit is 10%.
How do I calculate my net worth?
To calculate your net worth, just add up all of your assets and subtract all of your liabilities (excluding the value of the person’s primary residence). The resulting sum is your net worth.
What are the tax implications of an equity crowdfunding investment?
We cannot give tax advice, and we encourage you to talk with your accountant or tax advisor before making an investment.
Who can invest in a Regulation CF Offering?
Individuals over 18 years of age can invest.
What do I need to know about early-stage investing? Are these investments risky?
There will always be some risk involved when investing in a startup or small business. And the earlier you get in the more risk that is usually present. If a young company goes out of business, your ownership interest could lose all value. You may have limited voting power to direct the company due to dilution over time. You may also have to wait about five to seven years (if ever) for an exit via acquisition, IPO, etc. Because early-stage companies are still in the process of perfecting their products, services, and business model, nothing is guaranteed. That’s why startups should only be part of a more balanced, overall investment portfolio.
When will I get my investment back?
The Common Stock (the "Shares") of Mela Artisans (the "Company") are not publicly-traded. As a result, the shares cannot be easily traded or sold. As an investor in a private company, you typically look to receive a return on your investment under the following scenarios: The Company gets acquired by another company. The Company goes public (makes an initial public offering). In those instances, you receive your pro-rata share of the distributions that occur, in the case of acquisition, or you can sell your shares on an exchange. These are both considered long-term exits, taking approximately 5-10 years (and often longer) to see the possibility for an exit. It can sometimes take years to build companies. Sometimes there will not be any return, as a result of business failure.
Can I sell my shares?
Shares sold via Regulation Crowdfunding offerings have a one-year lockup period before those shares can be sold under certain conditions.
Exceptions to limitations on selling shares during the one-year lockup period:
In the event of death, divorce, or similar circumstance, shares can be transferred to:
• The company that issued the securities
• An accredited investor
• A family member (child, stepchild, grandchild, parent, stepparent, grandparent, spouse or equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships)
What happens if a company does not reach their funding target?
If a company does not reach their minimum funding target, all funds will be returned to the investors after the close of the offering.
How can I learn more about a company's offering?
All available disclosure information can be found on the offering pages for our Regulation Crowdfunding offering.
What if I change my mind about investing?
You can cancel your investment at any time, for any reason, until 48 hours prior to a closing occurring. If you’ve already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To submit a request to cancel your investment please email:
How do I keep up with how the company is doing?
At a minimum, the company will be filing with the SEC and posting on its website an annual report, along with certified financial statements. Those should be available 120 days after the fiscal year end. If the company meets a reporting exception, or eventually has to file more reported information to the SEC, the reporting described above may end. If these reports end, you may not continually have current financial information about the company.
What relationship does the company have with DealMaker Securities?
Once an offering ends, the company may continue its relationship with DealMaker Securities for additional offerings in the future. DealMaker Securities’ affiliates may also provide ongoing services to the company. There is no guarantee any services will continue after the offering ends.
What should I know about SAFEs.
5 Things You Need to Know About SAFE.
- SAFEs are not common stock. Common stock represents an ownership stake in a company and entitles you to certain rights under state corporate law and federal securities law. Common stock represents an ownership stake in a company and entitles you to certain rights under state corporate law and federal securities law. SAFEs do not represent a current equity stake in the company in which you are investing. Instead, the terms of the SAFE have to be met for you to receive any shares in the company.
- SAFEs are not all created equal. Different companies offering SAFEs use various terms to describe triggering events—and provisions concerning conversion and the conversion price might be subject to different treatment from issuer to issuer.
- Understand what triggers the conversion of the SAFE. The SAFE conversion may be triggered by a number of different scenarios that may—or may not—occur in the future for the company. For example, while one SAFE may be triggered if the company is acquired by or merged with another company, another may have as its trigger an initial public offering of securities by the company.
- A SAFE conversion may not be triggered. Despite the identified triggers for conversion of the SAFE, there may be scenarios where the triggers aren’t activated and the SAFE is not converted, leaving you with nothing. For example, if a company in which you invested makes enough money that it never again needs to raise capital, and it’s not acquired by another company, then the conversion of the SAFE may never be triggered.
- Know the terms and your rights with a SAFE. In addition to the trigger mechanism, there are a few other components of SAFEs that you should understand before you sign such an agreement with a crowdfunding issuer:
- Conversion terms. These are the specific terms by which the amount you invested in the SAFE gets converted into equity. For instance, the terms might explain whether it’s just your original investment that converts.
- Repurchase rights. There may be provisions in the SAFE that allow the company to repurchase your future right to equity instead of it being converted to equity.
- Dissolution rights. You need to know what happens to your SAFE and the money you invested if the company ends up dissolving.
- Voting rights. SAFEs do not represent current equity stakes in the company, and so do not provide you with voting rights similar to common stock. But there may be particular circumstances mentioned in the SAFE that allow you a voice on matters pertaining to your SAFE.