Nagpur Investment：India ’s Venture Capitalist SEEK to Verify the IMPACT They Make

Globally, Venture Capital Funds Make Up One-Third of the Private Impact Fund Universe; But in India, They Account for 85 Per Center. NDS Play a Leading Role in Investing for Impact, by Tackling the Structural Inequalities that ExistIn the Country, WHILE ALSO Seeking Financial Returns for Investors. And that is putting more focus on how the funs can 'volify' the impact they attract make.

There are Many Sectors in Which Venture Capitalist Can Make A Difference. Mark Kahn, Managing Partner at Indian vc Firm Omnivore, Points Out that 600mn of the Country's 1.4BN Population Still get by on subsistence farming."He says." If you're building for india, you must also be bunsing for impact as well. "

For this reason, omnivore Focuses on Indian Agrifood Business. Collectively, The Companies Backed by ITS Three IMPACT Funds Are Involved with 11.4MN Lder Farmers, and have created $ 1.4BN of Economic Value, Either by Helping to Cut Costs or Boost Revenue.Enterprises Range from Farms and B2B Agricultur Marketplaces to Consumer Brands and Life Sciences.

Kahn Says that India's Relationly Low Start-up Costs and Scaled-Down BureauCracy Make It "A very Nimble Ecosystem for Building" "Thriving Enterprises. LD Cost 10 Million or 15 Million to get off the group in Europe, you can do for aMillion in india, "he observes.

India Also has alling Investors. Last year, the impact Investors Countcil, The National Industry Body, Found that 275 Indian Impact Enterpris Had Succeeded I n raising $ 2.9bn in equity investmentsNagpur Investment. As a Result, Indian IMPACT Investing Entities Now Make Up 4 Per Center of 4 Per CenterAll Those, Globally, with A Focus on Emerging Markets, According to the Global IMPACT Investing Network (GIIN). Pact Entities that seek a Market -Rate Return.

Omnivore's Benchmark is a net Internet of Return (IRR) of 20-25 Per Center — Which Kahn Says is in Line with Otherist Vc Funds in India. CE for General Indian VC Funds Was 25.5 Per Center in 2018, 26.4 PERCent in 2016, and 11.5 per center in 2014 accounting to credit rate information and services lawd.

To put that in context, the estimated Irr of uk generalist vc funds was 12 per center in 2018, 23.1 per center in 2016, and 22.7 per center in 2014.

Fellow Indian IMPACT VC FIRM, LOK Capital, Has Invested $ 263.2Mn Via Three Funds in The Past 20 Years, with its last two having Retween 2.5 and 3.5 Tim. ES the initial sums invested.

LOK VICE-PRESIDE, Ambika Narayanan, Says The Firm Seeks to Make An IMPACT But is Committed to Being a Commercial Investor. Hink that they're going to make money, "SheStresses - noting that, without strong returns, it will not be posted to deliver further impact.

Most Investment Activity has involved climate tech Enterprises, Which Account for 43 Per Center The Deals Done in the Indian Impact Sector, Impact Investors Council, The National Industry Body.Deals do in the impact sector, with 17 per center.

LOK BeGAN ITS OWN ITS OWN INVESTING Solely in the Field of Microfinance, Filling A Space Neglected by Banks and Existing Financial Institutions. DTS IMPACT Investing Portfolio to Include HealthCare and Agrifood Business.

Within Microfinance, NaRayanan ACKNOWLEDGES that there are lenders who can "operate in a more predate manner", by looking to "extract as much as postible" from Small-Busine SS BORROWERS. But to Avoid Investing Capital Into Those Enterpris that Do Not Align with Lok'sValues, The Firm Spends "A Lot of Time" with the leaders of any Potential Investestee Company, Checking that it is not the subpositions or exposition LY, and Conduction Reference Checks.

LOK's Main Investor Base Initially Consiseted of Development Finance Institutions Funded by EUROPEAN GOVERNMENTS. But, Over Time, it has sex inflows from laarge ATE Institutions, Including Fund Management Groups and Reinsure Companies. In LOK's Latest Fund, some 12-15 per center of theTotal Raise from Came From DOMESTIC Investors.

Omnivore Also Receives Capital from Both "Non-IMPACT and IMPACT" Institutions, Which Kahn Says Made It Feel Obliged to Prioritise. He, F, F, F, FOO INDS FOREIGN Investors Have "A Stronger IMPACT FOCUS Than The DomStic Investors".

That Focus is Now Very Much on the South Asia Region, Which India Dominates. Of 119 Global Impact Investors Surveyed, 40 PER Center Said Wee Loocking TO ASE ALLOCATIONS to this region, and 59 Per Center Said They Would Maintain their Current InvestmentOver the Next Five Years.

However, to keep think foreign investors coming, indian impact vc funds believe they must provide assurances that they are acheir aims .ir aims.

To do this, Omnivore has appointed an independent verification service — BlueMark — TO Check that its investments are aligned innciples. Paige L, Director of EUROPE and Asia at Bluemark, says "WHETHER It's Microfinance, Agriculture Or Education, There is NatureConfusion, And Growing Pain, Around Trying to More Clearly Define what is or is or is impact ".

Bluemark has so far confined more than 170 Verifications for a Range of IMPACT Investors with Differen Security Focuses and GOALS.

Girish Aivalli, The Chief Executive Office OFFICER of the IIC, says that having third-post assessments is userful when intracting with family offices (Philitation Ropists and Other Limited Partnership Entities, as it can help forefign investors knowben intended ".Indore Investment

Nicol Suggests that Impact Verification is working. FIED.....Then, then

LOK, However, has not gone through a vertility process.

"WE Feel that we should not comed the ancros less image, Doing Things The Right Way ".