While to date the SIB debate has been largely focussed on US, UK, Canada and Australia, an article today from India discussing the possibility for overall impact investing there.
Enjoy!
Does India Need Its Own ‘Impact’ Investors?
Esha Chhabra – Forbes
The sun has appeared in Delhi. The “fog,” that clogs Delhi mornings in the winter, or as locals joke, less fog, more smog, has gone for a hiatus today. Perhaps in celebration of the “do-gooders” who are gathering to discuss the challenges of investing in India.
About 100 venture capitalists, entrepreneurs and want-to-be entrepreneurs have gathered on the lawns at Adianta School of Innovation in Chhatarpur, South Delhi. The dress code is Silicon Valley meets Nehru: jeans with smartly fitted, collared vests reminiscent of India’s first “architect.”
The venture capitalists here are India’s new architects. Investments, not votes, is their tool to better healthcare, ease transportation, and produce alternative energy models for the country.
Entrepreneurs, however, complain that India’s venture capital scene, particularly for “impact” investments, is limited. That is, investments which produce some social benefit to the society. Most of the capital for these investments comes from abroad: Omidyar, Acumen, Dell Foundation, for instance, operate funds in India.
Other US-based funds such as Gray Ghost Ventures invest heavily in Indian entrepreneurs. But, the capital trails back to the US. So where are the Indian investors for homegrown social entrepreneurs?
In 2011, there were about eight impact investors in India. That list has grown to approximately 35 funds as of 2013, including more local investors.