Decoding Asha Ventures’ $100 Mn Playbook For Impact Investing

by · Inc42

SUMMARY

  • While the initial wave of impact investing predominantly targeted financial inclusion—such as microfinance and affordable lending to underserved populations—the scope has broadened significantly in recent years
  • Asha Ventures is an early-to-growth stage impact fund founded in 2014 by former Morgan Stanley India head and president Vikram Gandhi, and former Genpact president and CEO Pramod Bhasin
  • Amit Mehta, managing partner at Asha Ventures speaks to Inc42 about how different impact investing is from building a regular VC fund, challenges in raising funds and more
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According to a 2023 report by the World Economic Forum, India is emerging as the key hub for impact investments.

This is perhaps the first opportunity for global investors to back businesses capable of bridging the gaps in sustainable development goals (SDGs) from the get go. With thousands of new startups and ventures emerging every year, impact investors have a significant role to play.

For those unfamiliar with the term, impact investing seeks to deliver positive social or environmental outcomes alongside financial returns.

In India, impact investing predominantly follows a venture approach, focusing on early-stage investments in for-profit enterprises that serve vulnerable and underserved communities.

However, a gap exists in growth-stage funding for impact enterprises, which limits their ability to scale solutions capable of driving substantial, global-level change. Often the core vision has to be diluted for business considerations to attract big ticket investments

While the initial wave of impact investing predominantly targeted financial inclusion—such as microfinance and affordable lending to underserved populations—the scope has broadened significantly in recent years.

This is visible in the recent impact investment data across sectors shared in a monthly report published by industry body India Impact Investors Council (IIC). The report indicates that a total of $2.3 Bn has been invested in first six months of 2024 (January-June) within the impact investment domain.