Asian Venture Philanthropy Network webinar Nov 2014 november

avpn.asia

AVPN Webinar

6 Nov 2014

Social Investing in

India: Landscape study

& Investor perspective

• Devangshu Dutta –

PVC Partners

• Audrey Selian –

Artha Initiative

Social Investing in IndiaLandscape Study & Investor perspective

Webinar: 6 November 2014

PVCpartners

@devangshu

PVCpartners

Quick Introduction

• Chief Executive of Third Eyesight, Managing Partner of PVC Partners

• Advisory Board member – various educational institutions and companies

@devangshu

PVCpartners

“…where there is a ‘government’ gap.” (my addition and emphasis)

Social Enterprise Alliance: “Any organization which harnesses the power of the marketplace to solve critical social or environmental problems”…

@devangshu

PVCpartners

Where are Gaps in Government?

• Healthcare

• Power

• Clean Water

• Transportation infrastructure

• Education

• Environment

• Competition

• Accountability

Source: “The Business of Government”, Dutta 2014

@devangshu

PVCpartners

You need to get your facts first, and then you can distort them as you please.~ Mark Twain

@devangshu

PVCpartners

0 1 0 1 0 15 7

20 20

27

139

12

3 1 2 2 36 8

15

2622

26

5255

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MFI Other Sectors

Impact Investments in India

• Acceleration of investments

• Non-MFI areas gaining traction

• Geographical diversification

• Urban markets

Source: World Bank, Intellecap

@devangshu

PVCpartners

Challenges through the Life Cycle

Discover

Selection

VettingStructure

Monitor

Exit?

• India challenges

• Sector challenges

@devangshu

PVCpartners

The Context (order-of-magnitude)

Metric (rounded off) Impact Investment E-commerce

Estimated Organizations 200 (non-FI) 100+

Immediate Target Market 800+ mn 7-10 mn

Invested/Committed US$ 400 mn (non-FI) US$ 5 bn

Investment per Target Individual US$ 0.50 US$ 500

Investment per Organization US$ 2 mn US$ 50 mn

Sources: Various, PVC Partners analysis

@devangshu

PVCpartners

Capacity Enablement

• Entrepreneurial

– Number of companies being funded

– Impactful Aggregation

• Investor

– ‘Infrastructure’, People

– Metrics & tools

– Collaboration

@devangshu

PVCpartners

Policy and Legal Frameworks

• Recommend using more equity-like instruments

• Compliances more rigorous, onerous – new Companies Act 2013

• Policy fluid (e.g. Act clauses are still being discussed and debated) – update yourself for each transaction

• Have a good combination of Company Secretary, Chartered Accountant and Lawyer

@devangshu

PVCpartners

I believe a nation is only as safe, just, healthy, rich, successful as the experience of its least privileged citizen.

What can we do to raise the floor?

@devangshu

PVCpartners

A POSSIBLE METRIC: Can we look at reducing the target market by half every 5 years?

@devangshu

PVCpartners

THANK YOU!

Additional thoughts:

http://is.gd/hKIPmX

[email protected]