Selian

The Artha Platform & Emerging Markets impact investing

Audrey SelianTBLI, Zurich November 2013

The story of a family

Rianta Capital is an investment advisory vehicle to a single family in the UK, with a mandate as part of its activities to deploy capital for high impact SME investments in India. The family wanted to give back Now manages a bespoke ecosystem tool to

support early/growth stage social entrepreneurs in India, thus fulfilling the family’s venture philanthropic mission

A personal turning point: Phulbani, Odisha

Artha Networks Inc. provides a proprietary, members-only, online platform, designed to increase the flow of investment capital to SMEs in emerging markets by lowering the transaction costs for investors and

social ventures.

It’s all about the journey to the deal, through due diligence, to the decision.

Artha India: Users

Private network: formally launched in 2012 Membership (by invitation only):

76+ Investors 44+ SME support organizations 27+ third party service providers

Pipeline: 56 investment opportunities listed. Nearly $1.4m in active closure as of January 2013

Information feeds: India-wide media resources Specialty niche networks, advisories, practitioners

(e.g., GIIN, ANDE, Monitor, Rockefeller, and Dasra)

Investors

Four user types

Entrepreneurs

ESOs3rd party service

providers

Investors

Entre-preneu

rs

ESOs 3rd parties

Particularly useful for organizations well positioned to use their power of convocation of diverse stakeholders.

Case Study: A Live Transaction

>>>

>Shared pipeline: Rianta identifies attractive investment opportunity from pool of deals profiled on platform. Peer Family Foundation signals interest in co-investing.

Standard M&E templates available to platform members Selected metrics and indicators can be shared with network if so desired per agreed terms. IRIS compliant

Rianta issues automated RFP to local investment services providers who are members of network. 5 parties bid. 1 selected. Due diligence completed in 4 wks. Cost: $12K Costs shared 50/50 with Family Foundation.

Standard term sheet & investment docs provided thru platform Legal counsel identified thru platform to customize docs 2 more investors have signaled desire to co-invest

USD $500K equity investment in clean

water provider (SME) in Orissa, India.

Patient capital; exits foreseen in Yr 8

Convertible preferred shares held; conversion upon next round

Can be linked to social exchanges

www.arthaventurechallenge.com

A replicable model for peers

The Artha architecture has been licensed by the Inter-American Investment Corporation (IIC)

IIC is a blue-chip investor: • Rated ‘AAA’• 800+ direct investments in SMEs totalling USD $4.8

billion • Additional $2.8 billion in indirect investments (through

partner banks). Artha powered platform to be deployed across 26

countries in Latin America and the Caribbean starting in Q1 2014

IIC seeks to use the platform as a vehicle for sharing its expertise and resources to partner with other investors

Barriers

Behaviour Change

Biased selection – language, access mode, etc.

The challenge of conveying urgency

Thank you!

[email protected]

UMANG (India)Producer Company, Uttaranchal