ET BureauBENGALURU: Social incubator Villgro and Switzerland-based impact investor Rianta Capital’s Artha Initiative have inked an exclusive partnership to fund and provide incubation support to early-stage social enterprises in India, with a focus on agriculture and allied services.
"Collaborations like these are the future of the impact space, there is great synergy between the mandate, sector and stage focus that will allow both organisations to significantly expand and deepen impact of our activities – while Artha is able to provide deeper and longer post-investment support, Villgro is able to attract additional funds for early-stage social entrepreneurs," said Mukesh Sharma, chief investment officer at Villgro, which aims to provide tools to social entrepreneurs to expand their business.
Under this deal, Artha will invest up to Rs 60 lakh per enterprise and Villgro will match the amount. "A high-potential company has the potential to receive up to Rs 1.2 crore, but we have to clarify that this will not be the standard," Sharma said.
The two entities expect to invest in five-eight companies a year.
Both Artha and Villgro will work towards building a network of investors – corporate partners, downstream investors, other like-minded family offices and angels based in India and abroad aligned with the impact focus and overall mandate to provide matching funding.
"This partnership will enable Artha to expand the variety of companies it is able to discover, work with Villgro sector experts and specialists focused on supporting early-growth stage companies from on the ground, and do so in a systematic and programmatic way that will be year round and based on a rolling application formula. Previously, we had a competition structure that happened just once a year," said Audrey Selian, director, Artha Initiative. Also, they may be an overlap of companies incubated by Villgro and funded by Artha with those that apply independently to the social incubator for its incubation programme.
"Collaborations like these are the future of the impact space, there is great synergy between the mandate, sector and stage focus that will allow both organisations to significantly expand and deepen impact of our activities – while Artha is able to provide deeper and longer post-investment support, Villgro is able to attract additional funds for early-stage social entrepreneurs," said Mukesh Sharma, chief investment officer at Villgro, which aims to provide tools to social entrepreneurs to expand their business.
Under this deal, Artha will invest up to Rs 60 lakh per enterprise and Villgro will match the amount. "A high-potential company has the potential to receive up to Rs 1.2 crore, but we have to clarify that this will not be the standard," Sharma said.
The two entities expect to invest in five-eight companies a year.
Both Artha and Villgro will work towards building a network of investors – corporate partners, downstream investors, other like-minded family offices and angels based in India and abroad aligned with the impact focus and overall mandate to provide matching funding.
"This partnership will enable Artha to expand the variety of companies it is able to discover, work with Villgro sector experts and specialists focused on supporting early-growth stage companies from on the ground, and do so in a systematic and programmatic way that will be year round and based on a rolling application formula. Previously, we had a competition structure that happened just once a year," said Audrey Selian, director, Artha Initiative. Also, they may be an overlap of companies incubated by Villgro and funded by Artha with those that apply independently to the social incubator for its incubation programme.
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