Investing for Sustainable Growth: The Aavishkaar Experiment for Sustainable Financing

Equity funds for rural enterprises: How successful?
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This paper presents the experiences of Aavishkaar India Micro Venture Capital Fund in providing equity funds to innovative rural enterprises. The author states that capital constraints prevent many bright ideas from making it to the market, hence Aavishkaar concentrates on supporting micro enterprises based on grassroots innovations. Aavishkaar seeks to provide venture capital to initiatives that are:

  • Socially relevant;
  • Environmentally friendly;
  • Commercially viable ventures that otherwise would not have access to capital from traditional sources of finance.

The author further states that Aavishkaar tries to achieve commercial returns for its global investors such that the chain of innovation - financing - commercialization and growth is strengthened in order to maximize impact in terms of:

  • Growth and employment;
  • Productivity and return on investments.

The author concludes with the observation that changes in the regulatory and banking environment facilitating flow of funds to a non-traditional venture funds like Aavishkaar India, would strengthen its financial foundation, and thus enhance its ability to promote sustainable growth.

About this Publication

By Nageswaran, V. A.