Editor’s Synopsis:
- IIM Udaipur launched a unique student-driven initiative that focuses on developing and managing an investment fund that will invest in ventures focusing on generating environmental and social impact while giving risk adjusted financial returns. It is India’s first such student-driven Impact Investment Fundand an affirmation of IIMU’s initiatives that are encapsulated in their hashtag #ItStartsAtU
- Ventures in 5 of the United Nations Sustainable Development Goals to be supported
- Collaboration planned with global Ivy League colleges having similar funds, like Stanford GSB, UCLA Anderson, Microlumbia, etc.
- Investees will get access to the IIMU ecosystem of mentors, professors, and functional clubs for consultation and use the talent pool for internships and live projects
- Fund Size estimated to be 7 Crores in 5 years. Initial investments are already received to the tune of INR 45 lakhs from the Transworld Group and Mr. Yogesh Andlay.
IndianInstituteofManagementUdaipurlaunchedastudent-managed Impact Investment Fund (IIF) focusing on investing in early-stage projects orstart-ups that create a social and environmental impact on society. The Impact Investment Fund(IIF) initiative aims to support entrepreneurs who have the potential to leverage their expertiseandskillstocreateanimpactforthesocietyandenvironmentinasustainablemanner.Ventureswillbesupportedin5Goalsfrom the United Nations Sustainable Development Goals – viz,Zero Hunger, Good Health & Well Being, Quality Education, Clean Water & Sanitation andAffordable&CleanEnergy
IIFshallplayanimportant role by bridging the gap between potential investors in socialentrepreneurshipandentrepreneursbyscoutingtheIndianmarket,understandingthe
objectives of both investors and entrepreneurs, aligning the fund’s objective of creating animpact, and awarding the fund to the entrepreneur along with the knowledge and operationalsupport. IIF recognizes the industry of the project, the benefit of the product or service, andevaluatestheimpactitwillhaveonsocietyandtheenvironment.
The Fund will be an ‘Evergreen Fund’, operating financially within IIMU IC as a Section 8Company, with provision for co-investing. Fund size is estimated to be 7 Crores in 5 years.Approximately 12-17 companies will be invested in at any point of time. Individual Investmentsarecappedat15%offundsizeorRs.40lakhs.
The launch was announced through a webinar in which Mr. Nakul Zaveri, Managing Partner,Relativity Investment Management, Mr. Navneet Garg, CEO and Co-Founder Caya Constructs,andMr.RameshS.Ramakrishnan,Chairman,TransworldGroupofCompanies,spoke,.
In his address MrRamakrishanansaid, “When patterns are broken new worlds emerge.Evolution and growth are the only stimulants that keep us moving and impact projects are goingto be agents of change to bring. There has been an increased shift towards sustainability byinvestors globally in the last five years. At Transworld Group, the higher purpose of ‘DeliveringProsperity to Humanity’ is our guiding light motivating us in our endeavour to be a channel ofprosperity not just our shareholders or staff, but to an all-encompassing constituent covering ourassociates, humanity and the entire ecosystem. As investors, it is our responsibility to supportimpact investments that support social development and would help to achieve the UnitedNation’sSustainableDevelopmentGoals(SDGs)by2030.”
Mr. Nakul Zaveri discussed the three most important things that impact should be aligned with.The impact should be globally acceptable while also being relevant to national/regional contextand adhering to standard metrics. He highlighted the importance of generating impact at scale,terminalvalueofabusiness,andofusingrelevantframeworksandmetricsinimpactinvestment.
Mr. Navneet Garg advised that looking for the right business model before investing is crucialfor any impact investment. He also said that doing good is good business. It must be theessence of what we do. The focus should not only be on impact, but it should also be onsustainabilityaswellasgeneratingfinancialreturns.
Mr. Yogesh Andlaysaid, “Social businesses have the potential of large-scale transformationand improve the quality of lives of millions of people. IIMU Impact Investment Fund sourcedand managed by the students of IIM Udaipur is targeted towards seeding and catalysing suchsocialinnovativebusinesses.
ThisfundwillprovideanexperientiallearningopportunitytothestudentstounderstandEnvironment, Sustainability and Governance issues. And build their capabilities to becomewholesomeservantleadershavingempathy,selflessness,andhumility.”
On the launch of this initiative, Prof. Janat Shah, Director, IIM Udaipur, said, ” It is a matter ofgreat pride and satisfaction to see this student-driven initiative take seed in India through thecommitment and passion of our young students to societal good. It will help make a positivesocial impact through the venture investment and mentorship support it provides. Importantly, itwill also give the students an opportunity to put their classroom learnings to a practical, sociallyrelevant application, as they identify, mentor and grow the ventures to also deliver reasonablereturns to fund investors. It is an intrinsically valuable lesson to imbibe as a future businessleader.IhopethisinspiresstudentsfromotherinstitutionsinIndiatoalsotakethisup”
The B-school further mentioned the impact investment fund is to create an impact benefittingsociety and our environment. Being the first student-led impact investment fund in India, intendsto promote a culture of impact investing in India by spreading awareness and inspiration to otherinstitutes.
Working with a Board of Directors, and Advisory Committees, all Fund operations, investmentsandexitswillbemanagedbytheStudents.TheFoundingStudentTeamhas18members.
IIFisalsolookingatcollaboratingwithGlobalImpactFundCollaborative,whichhas11institutesasapartofit(inclusiveofIIMU),Theinstitutesthatareapartofthecollaborationare,Berkeley-Haas Impact Fund, Chicago Booth – Tarrson Impact Investment Fund, Columbia – Microlumbia,Dartmouth – Tuck Social Venture Fund, Duke – Fuqua Sustainable Impact Fund, HBS – HarbusFoundation,IFIC-IESEImpactInvestingFund,LBS-StudentImpactInvestingFund,Michigan
-MichiganClimateVentureFund,Michigan-SocialVentureFund,Stanford-GSBImpactFund,UCLA-AndersonVentureImpactPartners,andWharton-WhartonImpactInvestingPartners.
