What is impact investing?
Impact Investments are investments in for-profit social enterprises seeking social returns along with the financial ones. The global size of impact investing market is $80 bn+ and is projected to increase to $1 tn by 2020. India is the largest emerging market for impact investing in recent times both in the numbers and size of investment with cumulative investment of ~ $2.5 bn in over 350 social enterprises over the last eight years.
Contrary to the popular perception, impact investing over the years has offered competitive financial returns compared to the market returns. According to a study by Cambridge Associates, Impact Investing Benchmark returned 6.9% compared to 8.1% by the comparative universe.
Benefits of impact investing
A key reason which makes India (and other developing markets) an attractive market for impact investors is the accessibility to consumers at the bottom of the pyramid, which has triggered the need for socially impactful market-driven solutions to development issues. There are multiple benefits to the investors - the institutional investors, as well as family offices - going for impact investment:
- A way to preserve and grow wealth while creating a social impact at market or near market returns.
- A way for Family offices for cross generation communication, as it unites the family around values and positive legacy.
Impact Guru and Fundnel
To unlock investment opportunities in areas including financial inclusion, clean tech, education, water and sanitation, and healthcare, Impact Guru has a strategic partnership with Fundnel, a Singapore based private investment crowdfunding platform. Fundnel will select and invite startups and/or social enterprises that have successfully leveraged Impact Guru’s crowdfunding platform in India to demonstrate traction to Fundnel’s network of family offices, venture capital funds, and accredited investors for international investment and for further scaling within Southeast Asia.
If your organization has achieved Product Market fit, and has established traction with some investors already for your current financing round, please contact us to explore how we can help you get more funding.