Influencers turn entrepreneurs banking on digital fame

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Shrenik Gandhi, co-founder and chief executive officer at digital agency White Rivers Media. “Influencers frequently partner for startups, and some even invest in them. Initial funding may come from influencers’ personal funds or partnerships with brands," Karan Pherwani, vice-president of influencer marketing agency Chtrbox said.

“Given their celebrity-like status, influencers often use their own wealth for such ventures, showcasing their evolving role in the startup ecosystem. There are also associations where established brands have collaborated with influencers for a special line of merchandise. For example, big brands like Smashbox collaborated with Malvika Sitlani and Mac Cosmetics collaborated with Shreya Jain," he added.

This trend is an extension of influencers' personal brands, helping them connect with their audience. “Coming out with merchandise also reflects one’s personality which only brings them closer to the audience leading to more visibility for brands," Ghosh said. The creator economy stems from a certain degree of individuality and like movie actors venturing into production, businesses give influencers greater control over what they do, Devdatta Potnis, chief executive officer of tech creator company Animeta said.

Supported by private equity and media knowledge, influencers also seek ways to sustain their careers beyond social media. “Films are a start in some cases but that could translate into playing second fiddle to mainstream stars," Potnis explained. Influencers try to create their own brand or invest in one to generate additional revenue streams.