Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home he stoped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and gas for ₹20,000. He purchased vegetables, bread, oil, spices etc for ₹10,000, cups, plats and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹50 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."

In the disposable item, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.

Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat's friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.

Identify the type of investor Mr. Om is

Angel investor

The correct answer is option (1) - Angel investor.

Mr. Om is likely an angel investor based on the information provided in the scenario. Here's why:

• Investee stage: Rajat's food stall at the time of seeking funding appears to be a very early-stage venture, just starting out with limited operations and history. This aligns with the stage of companies typically supported by angel investors, who focus on helping early-stage businesses with high growth potential.
• Investment source: Mr. Om is described as lending money from his own personal funds, a characteristic of angel investors who invest their own capital rather than managing pooled funds like venture capitalists.
• Relationship with Rajat: The passage mentions Mr. Om being known to Rajat's father and willing to help based on that personal connection. This aligns with the typical practice of angel investors often investing based on personal networks and relationships with entrepreneurs.