asian venture philanthropy network webinar nov 2014 november
TRANSCRIPT
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