With increasing awareness on social and environment sustainability among policy makers and the end-user, investments in innovations has moved away from just profit production and debt reduction mechanism.
Organisations have started seeing value beyond profits. Investor interests towards business models that are planet and people benign is picking-up pace. Not only at organisational level, but also at individual level people are coming forward to invest into initiatives that tackle social issues and thus create an impact in addition to the ROI. Such investors are proudly named Impact Investors.
Impact investing has become well-established in India, with over US$ 1.6 billion invested in over 220 enterprises. First round investments account for 30% of total investments at ~US$ 487 million, with around US$ 1.1 billion in follow-on funding .The major impact investment in India is done in three fields: Agri-business, healthcare and clean energy. We have enlisted here the 8 major funds active in impact investment landscape
Omidyar : A philanthropic investment firm harnessing the power of markets to create opportunity for people to improve their lives.
Sectoral focus: Consumer Internet and mobile,education, financial Inclusion.Governance and citizen engagement & Property Rights
Investments: HealthKart, TeachforIndia, Quickr and Intellegrow
Aavishkar- This is the country’s biggest social entrepreneurship-focused venture capital fund, set to raise $300 million (Rs 1,800 crore) in India in 2015. In the past 12 years, Aavishkar had raised $112 million and invested in the early stage social sector enterprises.
Sectoral focus: Agriculture, Dairy, Education, Energy, Handicrafts, Health, Water and Sanitation, Technology, Microfinance and Financial Inclusion.
Investments: 39 companies including Milk Mantra, Vaatsalya and Mera Doctor
Omnivore Partners – It invests in early stage agriculture and food technology companies in India.
Sectoral focus: Improving farm productivity, modernize agribusiness supply chain, promote farm products.
Investments: Khedut, Frontalrain, Arohan Foods, Barrix, StellApps and many more.
Unitus Seed Fund – Unitus Seed Fund is a part of the Unitus Fund and is a founding member of IIC. It has raised over $20 Million in investment commitments from a group of investors.
Sectoral focus: Seed Stage Equity and high growth sectors like education and healthcare in India.
Investments: Kinara, Microbenefits and Mobivik
Acumen Funds – Acumen was the first foreign investment company to work in India. By 2013, Acumen had deployed around US$ 31.9 million across 26 enterprises in India.
Sectoral focus: Healthcare Services, Formal Housing, Safe Drinking Resources, Quality Education, Clean Water.
Investments: Ziqitza, LifeSpring, VisionSpring, BASIX Krishi
Michael and Susan Dell Foundation India– It is a Texas based funding organisation which started working in India in 1999 and has reached heights in alleviating poverty.
Sectoral focus: Healthcare, Education, Family Economic Stability among India’s urban poor.
Investments: Partner with government initiatives, NGOs, community organisation etc.
Lok Capital – This Rockefeller Foundation-backed impact investor aims to raise $45 million (about Rs 270 crore) by June 2015. Lok Capital is currently managing two funds with ~US$ 90mn in aggregate.
Sectoral focus: Financial investments for social agendas
Investments: Exited its investments in microfinance institutions Satin Creditcare, Janalakshmi Finance, Spandana Sphoorty Financial, Arohan Financial Services and Ujjivan Financial Services Funds
Elevar equity– It backs entrepreneurs who deliver innovative market-based solutions that provide valued services to millions of customers. They have mobilized over $6 billion in equity and debt capital for targeted communities.
Sectoral focus: High growth commercial microcredit and community banking, remote payment services, small business credits, low-income housing services, rural health care and migrant worker services.
Investments: It has backed 21 companies. It has served over 17 million clients.
The Sane Age 