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.
