For queer businesses in India, overcoming prejudice takes precedence over making profits

For a number of queer entrepreneurs, staying true to their brand DNA is more important than being economically viable

Building a life as a trans entrepreneur has been no easy feat for Zainab Patel, mirroring the challenges faced by other trans women and men who preceded her. However, undeterred by the anticipated difficulties, when the concept of establishing and operating Mumbai's first transperson-led cafe, aptly named The Trans Café,in Andheri presented itself, she embraced it wholeheartedly, fully aware that it would be an uphill climb.

Despite its inauguration just before Diwali in 2022, gaining trust and attracting patrons to the cafe was a gradual process, taking around four months, as mentioned by Patel, who serves as the executive director of the Pride Business Network Foundation (PBNF). The cafe—self-funded by Patel and with financial aid from the Rotary Club of Bombay—has become an employer for approximately 7-8 trans individuals.

"Trans inclusion remains a significant challenge, exacerbated by a substantial gap in skill development and education. This challenge is substantiated by a study from the National Human Rights Commission of India (NHRC), revealing that 90 per cent of trans individuals have discontinued their education. The consequence of such dropouts is the limitation in accessing corporate jobs or skilled occupations, posing a considerable barrier," Patel tells The Established. 

However, Patel adds that despite these obstacles, trans individuals find ways to generate income, whether through traditional means like dancing, begging, or sex work. This diverse economic contribution, albeit challenging, remains a vital aspect that sustains the community, contributing to the overall economy.

Recognising the need for a social entrepreneurship approach, Patel explored an idea that empowers individuals to secure jobs and positions them as job creators. "In initiating the social enterprise, we aimed to redefine the dynamics. Within this venture, two key figures—a trans person and a genderqueer individual—were integral to the formation of the Section 8 company, the Pride Business Network Foundation [in 2022]. Our approach involves a shift in the conventional concept of hiring and business operations," says Patel.

Building faith

Patel and her business partner assert that ownership should be vested in the trans community. While they acknowledge that achieving 100 per cent community management might not be feasible due to supply chain considerations, the commitment remains to hire individuals from within the LGBTQIA+ community. "We are open to hiring from the general mainstream community when necessary to address specific skill gaps. This inclusive approach seeks to create a balanced and supportive environment," she says.

Patel and her team faced initial rejections in securing a space for the cafe; the process of registering the business, while streamlined, revealed a faceless system lacking information on the identities involved, such as being trans entrepreneurs. While the government and the Ministry of Corporate Affairs (MCA) track the registration of businesses, there is a notable absence of affirmative action tailored to ease the business process or relax certain criteria for trans individuals.

"Without a registered space or a no objection certificate (NOC), challenges persist for those wishing to start a business. These are particularly pronounced for economically disadvantaged individuals or members of minority groups. The difficulties encountered in securing a location for the cafe exemplify the hurdles faced, with inquiries questioning the necessity of the space and expressing unfounded concerns about potential involvement in sex work," says Patel.

Overcoming hurdles

While there might have been individuals who had reservations or concerns about eating at a trans-run cafe, the team didn't actively track such instances; overall, the establishment has become a regular eating spot for many patrons. The cafe then expanded by venturing into corporate catering opportunities, and setting up food stalls at various corporate events. This initiative gained momentum, especially during Pride Month in June, attracting increasing orders, Patel informs us.

However, with the model of putting up stalls and catering to corporate events on a one-day basis, staff shortages and needing to close the cafe for such events temporarily became logistical hurdles. Despite these challenges, the growing business and increasing orders signalled a positive trajectory.

Earlier this year, Patel, under the aegis of the Pride Business Network Foundation, with funds from Deutsche Bank and Rotary Club of Bombay, started the TransFormation Salon, which occupies a ground-plus-one-storey space in Mumbai's Prabhadevi area and has seven staff members from the trans community. 

Currently, the cafe operates without investors, focusing on empowering individuals. While there have been inquiries and considerations for seeking funding through initiatives like Startup India, Patel and her team are cautious about adopting an investor-centric approach. "The decision stems from a desire to maintain the social enterprise's essence and avoid becoming overly commercial. The current non-profit structure allows for flexibility in operations, and the team is wary of potentially compromising this by subjecting the venture to the conditions that come with external investments," explains Patel. 

Facing challenges head on

The consideration is also rooted in the belief that the unique challenges faced by queer businesses may require more personalised support and understanding, especially given the particular context in which the cafe operates. While there may be potential for success in replicating the business model elsewhere, the team recognises the importance of a supportive environment. It acknowledges that the local community's acceptance and openness may influence the venture's success.

It was this consideration of starting a venture in a safe locality that propelled Khuzaan Dalal to start a queer-led cafe, named Café Bahār, in Wanowrie, Pune. Apart from serving comfort food, the cafe is an inclusive space for the LGBTQIA+ community. Dalal informs us that in the hospitality industry, it is important to be inclusive without actually labelling it as a "queer enterprise". "Our cafe draws patrons from various communities, including those from more conservative backgrounds. Even today, despite the inclusive atmosphere we strive to foster, there are instances where heterosexual patrons might exhibit a subtle discomfort. Whether it's a noticeable flinch or a preference to sit at a distance, these reactions reflect the lingering societal attitudes that persist," says Dalal. 

For Dalal, the experience has heightened sensitivity towards not just different orientations but, more broadly, humility and humanity. "While exceptional service is crucial, I see it more as an icebreaker. When a guest walks into the cafe, the initial focus is on a genuine greeting and creating an atmosphere that encourages them to explore and feel at ease. It's about fostering a space where everyone feels welcomed and comfortable to engage and discover more, regardless of orientation," he says. 

And while expansion has been on Dalal's mind, given that the brand is entirely self-funded, he's keen on taking it slow. "I have already contemplated the establishment of another branch in the city. I am engaged in thorough market research to pinpoint the most suitable location. To be transparent, I must admit that I lack the financial capacity to self-fund further. The only viable options appear to be seeking a bank loan for investment or exploring opportunities with angel investors. This decision presents a unique challenge, as my brand is highly personal, and involving external investors may pose a risk of diluting its essence," says Dalal.

Coming clean

For Anuja Parikh and Rupa Sengupta, founders of organic petcare brand The Modern Tail, given that they operate independently and are self-funded, their interactions primarily involve directly engaging with clients, customers, or other businesses within their specific industry. "Fortunately, in our experiences thus far, particularly when collaborating with other businesses, we have not encountered any notable bias. We attribute this, in part, to our openness about the individuals behind the business—clearly stating that we are an LGBTQIA+-led business.

However, it is crucial to emphasise that we do not exclusively cater to the LGBTQIA+ community; rather, we operate as a business that happens to be led by individuals from the community. As a backend business, our focus extends beyond the confines of the LGBTQIA+ space. Any prejudice we might face would likely stem from someone's knowledge of our personal lives, as our orientation may not be readily apparent to those unfamiliar with our business or its backstory," says Parikh.

Helping hands

In building a conducive environment for queer businesses, the Samavesh Chamber of Commerce (SCC) has been leading the charge in co-creating a business and policy ecosystem with the industry and the government that encourages, supports, and provides access, engagement, and visibility to LGBTQIA+ businesses, individuals, and organisations that engage with them.

"Some queer individuals with compelling business ideas lack the know-how to establish their ventures, including the absence of a well-defined financial plan detailing how much personal capital to invest and avenues for securing funds. This is where we come in to offer guidance," says Kanishka Chaudhry, co-founder, SCC. The organisation assesses the viability of their ideas and proposes a practical approach—suggesting the possibility of obtaining a small loan from one of SCC's donors to kickstart their venture. It's important to note that this isn't a grant; recipients are expected to repay the loan over a period of time without incurring any interest charges. For instance, if a donor contributes 10,000, 20,000, or 50,000 rupees to initiate a project, the entrepreneur commits to reimbursing the amount once their business becomes profitable, typically within a year. Such a structure allows for financial support that encourages entrepreneurship while maintaining a sustainable and mutually beneficial arrangement.

A thriving ecosystem

The SCC also provides entrepreneurs with a designated gestation period during which they closely monitor their progress. "We evaluate their performance before assisting them in the application process for establishing their business. Our organisation offers certification programmes specifically designed for LGBTQ businesses, and we hold global affiliations such as with The National LGBT Chamber of Commerce. Through these affiliations, we facilitate two registrations—one for membership and another for a supplier diversity programme," says Chaudhry. 

The SCC's supported businesses also face challenges for entrepreneurs who possess funds but need more expertise. "We guide them on essential aspects, such as determining the appropriate amount of personal investment in their ventures. It's crucial to dissuade practices where businesses operate solely through a promoter, as this can lead to personal liability issues. We actively assist in their financial planning, business plan creation, and related matters. For those with funds at their disposal, we emphasise the importance of strategic investment, cautioning against the tendency to inject more capital solely during prosperous times. Encouraging responsible financial practices ensures sustainable growth for their businesses," adds Chaudhry. 

Wear your queerness

Akshay Sharma, creative director and founder at Vulgar, a homegrown brand that flips a finger to binary fashion, says since starting his business in 2020, they've adopted a strategic approach to marketing and selling their clothing. Reflecting on the initial marketing research, it became apparent that brands exclusively focused on the LGBTQIA+ category faced challenges in flourishing. Recognising this, there was a deliberate decision to go beyond these confines; instead of overtly proclaiming acceptance, the strategy involved conveying the message subtly, more inclusively.

Sharma also expresses a realistic perspective on breaking even, acknowledging that there are months when the goal is met and others when it isn't, and that's acceptable at this stage. "Recognising the initial years as foundational for brand building and business establishment, I'm mindful of the importance of this period. I have been toying with the idea of introducing another brand and line of commercial products far-removed from what Vulgar stands for. The groundwork for this new venture is complete, and we are set to launch it early next year," they say, adding that they are in touch with multi-retail outlets to stock Vulgar pieces in the coming year. 

But, Sharma clarifies that “commercial” for them doesn't translate to "massy". Drawing from observations of other brands, without specific mentions, they note how commercial investments can alter the authentic essence of a brand, making it commercially driven and, in his view, repulsive. "Art should retain its integrity, acknowledging the role of capitalism but asserting that staying true to my identity is crucial," they say.

While acknowledging the need for financial viability, Sharma maintains that being economically successful is possible without compromising on the genuine essence of the brand.

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