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Impact That Gives a Greater Purpose to Investments

02 August 2022

By

Aarti Monga

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3 min read

As economies and people step out of quarantine to feel the wind of revival and catch ups, it is apparent how the modus operandi around thoughts and deeds have transformed over the last two and a half years. The turbulence that hit us all, now inspires us to be more cautious, while also being more aware and conscious. The case fits well across all walks of life and business, be it the amount of quality time we try to spend with our families or the investment and divestment decisions that we are bound to take at work.

Private capital has progressively fueled the growth of entrepreneurs and startups for more than the last two decades. So much so, that the revolution which started then, has helped navigate so many of our daily challenges through creative and technology-oriented applications, right at the click of a button, bridging gaps in times when no one was prepared. Parallelly, it has played a critical role in bringing about a paradigm shift in the traditional ways of how many industries/sectors used to operate. The contributors of capital recognize and acknowledge the reach that new age startups have across geographies, while enabling access to knowledge and know-how into the most essential domains of education, agriculture, logistics, healthcare, housing and finance.

At a broader level, so many of us are seeking our Ikigai, aiming to achieve satisfaction and happiness at personal levels, while excelling in our professional endeavor. It would be justified to believe that the return on capital is now weighed beyond the monetary inflows, taking into regard the negative and positive impact that it shapes onto the society, environment and fellow habitants. As a result, Venture Capital and Private Equity Funds are now measuring the impact that their portfolio companies are creating in developing nations by reaching out to those previously underserved. Certain funds now focus on being ESG (Environmental, Social and Governance) compliant and hence, be more conscious about the investment decisions that they undertake. Measurement of impact could assess the extent to which portfolios are enabling commerce, enhancing reach, offering means to life necessities, creating jobs, treating gender gaps and so on. It does involve a perspective to identify, tap and grow though.

As a mainstream technology-focused Fund, Chiratae Ventures is operating at the node of technology, profitability and ESG and Impact. We are measuring and reporting impact for our active portfolio in ESG integrated Fund III and IV. The recently launched Impact report for Q3’FY22 exhibits the portfolio’s contribution to 12 of the UN-SDGs by way of reaching nearly 65 million individuals, which includes more than 23 million females. The investees have assisted many thousands of nano, small and medium enterprises in accessing credit, insurance, tech and market. Investments in Health-tech companies have touched more than 40M people across critical segments of maternal health, fitness, diagnostics, devices, prosthesis, oncology, vision, dentistry, IVF, infection control etc., hence enabling vast access. Chiratae recognizes climate action as a critical area to inspire companies to assess their production and consumption patterns. The Impact report further strengthens Chiratae’s effort to invest in and support companies which add a greater purpose to our investments while also generating desired returns. We aim to continue our efforts to learn, measure and report on Impact metrics and share our findings with the larger members of the society.

References

A. Environmental Stewardship
To protect the environment, we organize programmes like mangrove nursery and Reforestation, Coastal and River Clean-Up, Community Based Environmental Solid Waste Management, Environmental IEC Campaign and Eco-Academy

B. Food Security and Sustainable Livelihood
To ensure a sustainable livelihood for the community, eco-tourism include Buhatan River Cruise Visitor Center Buhatan River Mangrove Boardwalk are run by the community. Others include Organic Vegetable and Root crops Farming, Vegetable and Root crops Chips and by-products Processing and establishing a Zero waste store.

C. Empowered Communities
To empower the community, we provide product and Agri-Enterprise Development Training, Immersion and Learnings Exchange Program, Earth Warrior Training and Community Based Social Entrepreneurship Training

Author

Aarti Monga

Financial and Impact Analyst at Chiratae Ventures India Advisors

Aarti is Financial and Impact Analyst at Chiratae Ventures India Advisors. She has more than 8 years of work experience in the startup space, having worked in the areas of regulatory and policy advocacy, fund raising, and M&A. She was previously with Invest India under the Startup India Initiative, launched by the Government of India and was instrumental in bringing about various regulatory reforms for the betterment of the Startup ecosystem. Prior to this, she has worked with Clix Capital (formerly GE Capital) in the Fintech space and with S.S. Kothari Mehta and company towards Deal Advisory and Valuations. She is a Chartered Accountant by qualification and a Bachelor in Commerce, with Hons. from Lady Shri Ram College for women, Delhi University.

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We see social investment as a continuum that encompasses everything from philanthropy and venture philanthropy to impact investing, CSR and sustainable investment. We call this the “Continuum of Capital”.

We see social investment as a continuum that encompasses everything from philanthropy and venture philanthropy to impact investing, CSR and sustainable investment. We call this the “Continuum of Capital”.

©2021 Asian Venture Philanthropy Network | AVPN is registered in Singapore as a charity (UEN 201016116M)

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