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CONTENTS

Introduction

Portfolio Impact Stories

– AddressHealth Clinics

– BetterPlace Security Solutions

– DriveU: Private Car Drivers

– LabInApp: 3D virtual lab tool

– Milaap: Crowdfunding India

Pg 1

Pg 2

Pg 4

Pg 7

Pg 10

Pg 13

1

INTRODUCTION

We started Unitus Seed Fund in 2012 with a singular focus of “innovating for the masses in India.” At the end of June 2017, after looking at over 2,500 startups we invested in 23 early-stage businesses which had the potential to profitably deliver products or services that improve the lives of Indians at the base of economic pyramid (BoP), or provide sustainable and better jobs to the same population; all at scale.

Today, we are incredibly proud and excited as we’ve crossed a very significant milestone; we have directly impacted over 1.2 million low-income lives as a result of the work of our fast-growing portfolio companies. Unitus Seed Fund’s one million landmark is momentous for the entire investing ecosystem: we’ve now shown the scale of impact a seed-level fund can achieve in a short span of four-and-a-half years.

In a first-of-its-kind move within the Indian investment ecosystem, we have aligned our impact outcomes with the UN Sustainable Development Goals (SDGs). With global acceptance of the SDGs across multiple industries and governments, this enhancement provides a universal language to communicate our impact to a wide range of investors and other stakeholders.

To recognize this milestone, we have put together a few short stories to give you a glimpse of the kind of bold bets we have made over the last five years and how our investees are improving lives qualitatively across India. These stories are a testimony that human welfare can be successfully integrated in to a business model and in an opportune environment such as India, impact investing is a proven strong vehicle to scale approaches that can positively impact the masses.

Team Unitus Seed Fund

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ADDRESSING SUMUKH’S1 DREAM

4th of July, 2008 was a night of celebration for the household in a western suburb of Bangalore; not to celebrate American Independence day, but to celebrate the birth of a child named Sumukh.

Cut to November 2014; Sumukh was now a cheerful first grader from Vidyanikethan Public School. Apart from the usual bouts of cough & cold and runny nose, Sumukh was a healthy child.

Sumukh’s school had tied up with AddressHealth for their school health services. On that fateful day, AddressHealth conducted an annual school health checkup to screen children for various health issues which may not show up during an illness visit to a doctor, such as vision problems, hearing disorders, obesity, anemia, dental caries or undiagnosed heart murmurs.

Dr. Padma Rao & Dr. Prabhakar Rao, a doctor couple working for AddressHealth, were busy at the school, getting the nurses to organize the screening stations, calling the children in for their health checkup and putting them at ease.

Even as Dr. Prabhakar Rao put his stethoscope on Sumukh’s chest to hear for any cardiac murmurs, he heard an abnormal sound. He asked Dr. Padma to recheck to make sure he

Sumukh’s school had tied up with

AddressHealth for their school health services.

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was not making a mistake. Dr. Padma listened again. Sumukh’s heart sounds were not normal. He needed further evaluation.

When the health checkup report reached Satish, Sumukh’s father was shocked to see that the doctors were recommending a visit to a cardiologist. AddressHealth data center made a call to Satish to explain that nearly 1% of all school children may have undiagnosed congenital or rheumatic health disease and will need further evaluation.

Sumukh’s parents took him to a cardiologist for a 2D Echo and a clinical exam. The cardiologist diagnosed Sumukh with a small Atrial Septal Defect. The doctor appreciated the school health check that could diagnose this condition and told the parents that a medical device closure under anesthesia would be required. Left alone, the atrial septal defect would had led to increased pressure

in the blood vessels of the lungs during adulthood which would have resulted in fatigue, breathlessness and even heart failure.

Sumukh underwent the medical procedure during the Christmas holidays and by the New Year, he was back in school, running around and playing! His parents are thankful to AddressHealth for having diagnosed the heart murmur and want to see him grow up and become a doctor! Sumukh of course has different plans; he wants to go into space and maybe even Mars!

1 Names and photographs of children are illustrative for confidentiality reasons. The story is based on true facts encountered by AddressHealth during the course of its work.

“Sumukh’s parents are thankful to AddressHealth for having diagnosed the heart murmur and want to see him grow up and become a doctor!

ALIGNS WITH U.N. SDG 3

Healthcare outcome - BoP patients’ improved access to healthcare and detection of health issues early on.

Ensure healthy lives and well beingUniversal access to healthcare

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Earlier this year, Gopabandhu Das migrated from Balasore, a small village in Orissa, to Bangalore in the hope of providing his family a better life. He approached SRF Security - a security services company - for a job. SRF Security entered his details on to the BetterPlace online platform which initiated background verification, skill assessment, training and financial benefits processes.

In less than three weeks, BetterPlace completed Gopabandhu’s entire verification process using their app and feet-on-the street mechanisms. Gopabandhu then underwent a 2-week training (as per the NSDC guidelines) and was immediately placed at Manyata Tech Park - a software technology hub in the city - for a salary of ~ INR 15,000 (US$225) per month – a solid starter salary for an unskilled labour (average

starting salary for an unskilled labour as fixed by Government of India is at a minimum of ~INR 11,256 (US$175)).

He also managed to secure a loan of INR 5,000 (US$75) for his immediate needs and his company provided him term life insurance worth INR 1 lakh (US$1,500). For a migrant worker with no digitised data records,

MAKING INDIA A ‘BETTERPLACE’ FOR EVERY CITIZEN

In less than three weeks, BetterPlace

completed Gopabandhu’s entire verification

process and was immediately employed.

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Gopabandhu seamlessly transitioned into the formal economy in less than a month through BetterPlace’s tech-driven solutions.

Gopabandhu is one among the ~450 million people working in India’s informal economy aspiring to move to formal jobs. These blue and grey collar workers (security guards, drivers, delivery staff, housekeeping, factory workers, etc.) migrate to cities in search of a “Better Life”. A big impediment in their transition is the lack of credible data that businesses require before hiring them to verify and ascertain their background, credentials, experience and criminal records (if any). Most of these workers don’t have a “digital” history making which impacts their employability.

BetterPlace delivers a solution to address this hiring challenge by enabling millions in the semi-formal workforce get access to jobs,

credit, insurance, quality healthcare, etc. They do this by creating and leveraging their digital profiles across five key areas — personal, professional, employment, criminal and training. This multi-point verification across digital and offline channels is done using a combination of sources i.e., Aadhaar (digital ID), traditional background checks, as well as crowd sourcing from social media platforms. Further, BetterPlace’s trust-based system also offers a continuous monitoring which takes feedback provided across key touch points (professional and personal) as well as location-based data analytics.

“BetterPlace’s solutions are enabling millions in the semi-formal workforce get access to jobs, credit, insurance, quality healthcare and more.

ALIGNS WITH U.N. SDG 8

Consumer Services outcome - Blue collar workers’ inclusion in the semi-formal economy with increase in income

Promote decent work for all and sustainable economic growthDeveloping World Employment, Fair Trade and Ethical Supply Chain

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BetterPlace currently has access to over 3.5 million profiles, 400,000 trusted profiles across about 70 percent of the country which the company achieved while maintaining gross margins at over 40 percent. Since inception, it has worked successfully with more than 200 business clients across diverse verticals

such as hyperlocal logistics, on-demand services, facility management, education, retail and cash logistics to name a few.

The company is aiming to create a “Better Place” for the next 1 billion Indians.

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INDIA’S FIRST AND FASTEST GROWING ON-DEMAND DRIVER SERVICE

Today, in India, there are over 25 million private cars; a number that’s expected to double by 2023. In Bengaluru alone, there are over 15 lakh private cars and at least 30 per cent owners are seeking reliable drivers. While unicorn cab-aggregators are increasingly encouraging people to forego the usage of personal vehicles, one cannot overlook the fact that India is also forecasted to have the fastest growth rate of new car purchase over the next decade.

Further, with accelerating urban population which is expected to increase to 637 million by 2025 worsening infrastructure capabilities more (current average car speed is ~9 km /hr), driver service for personal vehicles will soon become a non-negotiable. This is a large, unaddressed market, which

Bengaluru-based DriveU, India’s first and fastest growing on-demand driver service is tapping in to.

Founded in July 2015, DriveU provides background-verified, trained and uniformed professional drivers via the DriveU app (available on Android and iOS) and the website at a nominal cost of INR 89/ hr (~USD

DriveU brings you a professional car driver

service; hire drivers on an hourly basis for your

car with a easy-to-use smartphone app.

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$1.33) for intracity trips and INR 1199 per 24 hrs (~USD $18) for outstation trips, catering varying needs from daily commute to work to weekend getaways; all on-demand, in less than 30 minutes.

It’s mandatory for DriveU’s drivers to have a minimum of one year experience before they sign up on the platform and the company conducts a driving test and professional and personal background verification. All drivers have access to health insurance and their earnings are paid bi-weekly. For customers, apart from availing on-demand driver service, other advantages include no surge pricing, and ease of payment (cash/mobile wallet / DriveU wallet / PayUBiz – which allows access to most banks). DriveU is currently servicing across 6 cities - Bengaluru, Chennai, Mumbai, Delhi NCR, Pune and Hyderabad. The drivers’ average monthly income is ~INR 25,000 (~USD $373) with

few managing to make as much as INR 40,000 (~USD $597).

Mohammed, a Bengaluru-based driver had worked with multiple local cab aggregators which would deduct as much as 40 per cent of the earnings and have no fixed working hours leading to erratic income. Things changed when he joined DriveU. He says, “At DriveU, the first few duties are assigned the previous night and the subsequent ones take less than half hour once the previous ride is over. We have uniforms, are well-trained and have a manual that helps us understand

“DriveU with its deep technology, value and professionalism for both drivers and customers, instils a sense of pride in me.

ALIGNS WITH U.N. SDG 8

Consumer Services outcome - Blue collar workers’ inclusion in the semi-formal economy with increase in income

Promote decent work for all and sustainable economic growthDeveloping World Employment, Fair Trade and Ethical Supply Chain

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INR 420Average Fare

60%Repeat Users

60%Female Customers

INR 400Median Fare

5Trips / month by

Repeat Users

INR 420Average Fare

60%Repeat Users

60%Female Customers

INR 400Median Fare

5Trips / month by

Repeat Users

INR 420Average Fare

60%Repeat Users

60%Female Customers

INR 400Median Fare

5Trips / month by

Repeat Users

INR 420Average Fare

60%Repeat Users

60%Female Customers

INR 400Median Fare

5Trips / month by

Repeat Users

INR 420Average Fare

60%Repeat Users

60%Female Customers

INR 400Median Fare

5Trips / month by

Repeat Users

how to deal with customers in different situations. Further, unlike other cab aggregators, there is no surge pricing; DriveU has flat rates which ensure high customer-satisfaction and retention.” With flexible working hours and a high tech-enabled platform, Mohammed’s monthly income has regularised, with him earning nearly Rs 25,000 (~USD $373) every month.

Another driver, Gregory Rosario, a 50-year-old man with decades of experience in publishing and book trade until he lost the business to new media, chanced upon DriveU in the newspaper and decided to join. He says, “DriveU with its deep technology, value and professionalism for both drivers and customers, instils a sense of pride in me. On an average, it’s not difficult to earn approximately Rs 1,000 (~USD $15) per day.”

Since founding, DriveU has completed more than 125,000 trips, with over 60 per cent trips demanded by repeat customers. By providing predictable, background verified, high-quality driver service with a transparent pricing mechanism, DriveU has been growing at 20 per cent month-on-month, is planning to expand services to 10 cities by end of the year. From a humble beginning of just 34 drivers in July 2015 to 1,100 today, DriveU is now planning to increase its driver network to 10,000 by December 2017.

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A GROWING SCIENCE LAB IN THE HANDS OF 20,000 INDIAN CLASSROOMS

“I hear, I forget. I see, I remember. I do, I understand” – Confucius

Kalaghatagi is a small, rural town in Karnataka’s Dharwad district. Mahesh2, a physics teacher in one of the affordable schools here, often uses videos from varied sources, few working models he created, to demonstrate the concepts and make his classroom more engaging. However, lack of financial resources would deter him from giving these working models in the hands of the students as the school isn’t in position to bear expenses of any damages. He rightfully questions, “How will students really understand a concept, if they don’t explore and experiment themselves?”

Last year, he came across LabInApp - a Hubli-based startup, that has developed a virtual laboratory for

science students studying from 9th - 12th grades, leveraging technology that’s increasingly available across India’s low-income schools. He started using this and has noticed a big difference in the way students

perform. He says, “After installing LabInApp in our school tablets, it made my work easy and almost eradicated

Mahesh, a physics teacher from Kalaghatagi,

Karnataka uses LabInApp in school tablets to

explain physics concepts.

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the problem of demonstrating in the classroom. Moreover, now I can give those working models to students to interact without any worries and they are so engaged in their learning that I haven’t seen them like this before.”

“In India, the idea of ‘learning by doing’, which is the most powerful way of understanding and retaining concepts of science, is missing”, reasons Pavan Shinde, Co-founder and CEO of LabInApp and the man behind developing this 3D simulation-based, real-time and curriculum-mapped interactive software.

How does LabInApp work?

In simple words, LabInApp is a virtual lab that enables teachers and students to demonstrate and perform experiments, on an app. It maps the entire science curriculum (physics, chemistry and biology) of students studying from 9th - 12th grades and builds an interactive, virtual experiment, one that runs on low-cost

Android tablets as well as on Windows desktops and notebooks.

For example, if a student is trying to understand gravity, LabInApp will demonstrate the concept by moving different objects around, under the earth’s normal gravity, and then change multiple parameters to know how it might look on the moon etc. In Biology, for instance, LabInApp will show in great detail, the entire frog dissection as opposed to a mere picture of its anatomy.

The advantages of this simulation-based interactive science learning are many; for teachers, it enhances the ability to deliver live demonstration

“How will students really understand a concept, if they don’t explore and experiment themselves?”

ALIGNS WITH U.N. SDG 4

Education outcome - BoP students’ consistent participation and performance improvement.

Ensure quality education for allUniversal access to education

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of experiments and concepts in a controlled environment, and students are able to grasp these faster and retain them, longer. Further, students can perform these experiments virtually, multiple times at any time and location. After all, they have the power of science, in their hands now.

Impact and way forward

LabInApp started with a B2C model, selling directly to schools. Realising quickly the challenges of scaling up, it pivoted to B2B model; partnering with education technology providers and publishers to sell its content through an annual licencing model. Tata ClassEdge, Karnataka State

Council for Science and Technology are few of the partnerships, LabInApp has managed to seal, in less than two years.

Today, the company is providing its virtual, easy-to-access laboratory to 20,000 classrooms and 500, 000 children across 1,500 school in India on an annual subscription-based model. LabInApp has currently visualised over 250 models (only lab concepts) and clocked in INR 2 crore (~USD 155,000) in FY16. It is now working towards visualising 2500 modules (lab + theory) and reaching to 5 million students, who will learn by doing.

2 Name changed to ensure privacy

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FUELLING INDIA’S GROWTH THROUGH ONLINE CROWDFUNDING

What can a small amount of loan really do? Quite a lot.

In West Bengal’s South 24 Parganas, 84 per cent of the 8 million population is rural. Of these, only 53 per cent have access to grid electricity which has limited and highly irregular service, leading to frequent extended outages lasting several hours a day. Ultimately, work productivity is affected severely. The reliability on kerosene and candles increases, further affecting the womens’ savings, productivity and health.

In December 2012, Milaap partnered with Dhosa Chandaneswar Bratyajana Samity (DCBS), a small community-based microfinance institution operating in over 200 village communities of the South 24 Parganas District. DCBS wanted to promote a

new solar lantern loan product to its existing borrowers’ base of ~8,000 women, who were largely working as embroiderers and shopkeepers.

To date, Milaap has provided micro-loans to more than 2,300 women, amounting to INR 5,890,000 (~USD

Gajra, an embroiderer is one of the micro-

lenders. She now owns a new solar lantern

through Milaap which has increased her work

as well her profits.

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$87k) and has witnessed a 100 per cent repayment rate. DCBS’ partnership with Milaap alone has impacted the lives of 9,800 people in this district.

Gajra, an embroiderer is one of the micro-lenders. She now owns a new solar lantern and says, “After buying the solar light, my work has increased and so have my profits. Now I make between INR 400 – 500 (USD $6 - $8) more than before. Earlier, when the children used to study, I gave them the kerosene lamp and had to sit beside them, since there was a chance of it catching fire. I no longer have to worry.” For DCBS’ women borrowers, solar lighting has proven to be a one-time investment that improves health, productivity and savings significantly.

In another case, Milaap partnered with Gramalaya Microfin Foundation (GMF) in Tiruchirappalli, Tamil Nadu. A non-profit organization, GMF economically empowers rural women through livelihood-promotional activities and increased access to financial services. GMF provides loans between INR 10,000 to INR 25,000 (~USD $148 - $370) to start or expand businesses. Further, GMF’s Gramalaya Entrepreneurs Associates (GREAT) trains women self-help groups in one of 25 income-generating skills such as banana value-added products, mushroom cultivation, poultry farming etc. To date, Milaap has disbursed 7701 loans worth ~ INR 61,810,000 (~USD $913k), impacting the lives of 15,771 people and has witnessed a 100 per cent repayment rate.

Kalyani Karnan displaying her health mix packets (L) and another woman trained under Gramalaya

Entrepreneurs Associates who has started her own business with a loan from Gramalaya Microfin

Foundation (GMF) in Tamil Nadu

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Kalyani Karnan, a borrower had taken a loan from GMF to start a millet-based products business. She and other women of her group make and sell millet-based health powder that contains a mix of bajra, jowar, ragi, wheat, cashews, and other healthy side ingredients. In an interview with The Better India, she said, “You would be surprised how many people don’t know the nutritional value of millet products. While Horlicks, Boost, and the likes have great brand value and fancy packaging, we are upping the ante here with simple yet nourishing millet-based powder.” Kalyani has been selling this powder successfully for over a year now.

These are just two examples. Today, Milaap has over 50 field partners across India, addressing critical needs such as housing, sanitation and water, enterprise development and more. Since inception, Milaap has disbursed 62,008 micro-loans through partner organizations, amounting to Rs 63.91 crore (~USD $944k), which have

impacted the lives of 288,000 BoP (Base of the Economic Pyramid) people. The repayment rate for the micro-loans has been a remarkable 99.21 per cent.

Here is a break-up of the loans disbursed (as of November 7, 2016):

Founded in 2010 by three young entrepreneurs, Milaap’s aim was to fill the credit gap for essential services such as education, healthcare, water and sanitation and emergencies, among others, for India’s low-income population, by sourcing financial resources from online and offline

Education 2,610

Energy 25,359

Enterprise Development

21,055

Water 1,904

Vocational Training 5,311

Sanitation 4,957

Housing 150

ALIGNS WITH U.N. SDG 1

FinTech outcome - Individuals’ basic needs (energy, water, sanitation, etc.) met through formal finance.

End PovertyAccess to basic goods and services, financial inclusion

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lenders. Milaap started (and continues) as a micro-lending platform for the rural poor wherein it partners with local MFIs and social enterprises, and borrowers repay their loans to these Milaap partner organizations.

In 2014, Milaap further expanded its services to allow individuals and charities to raise money in the form

of one-time donations for social causes and medical emergencies, as well. The collective results have been impressive as Milaap is nurturing a growing community of donors and lenders from over 120 countries across the world. Overall, Milaap has raised ~INR 102 crore (USD $15m), in donations and loans.

At the intersection of technology, social good and small amounts of loans from online Samaritans, the possibilities of impact, inclusivity and larger sustainable development, are limitless. Milaap has indeed introduced a silent revolution in India, one which is bringing a permanent and impactful change in the lives of the poor. And the revolution, is here to stay.

“Milaap has indeed introduced a silent revolution in India, one which is bringing a permanent and impactful change in the lives of the poor.

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PORTFOLIO IMPACT STORIES A

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