- 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.
February 03, 2022 ; Udaipur: Indian
Institute of Management Udaipur launched a student-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 expert iseand skill stocreate an impact for the society and environment in a sustain able manner.
Ventures
will be supported in 5 Goals from the United Nations Sustainable
Development Goals – viz,Zero Hunger, Good Health & Well Being,
Quality Education, Clean Water & Sanitation and Affordable &
Clean Energy IIF shall play an important role by bridging the gap
between potential investors in social entrepreneurship and entrepreneurs
by scouting the Indian market,understanding the 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, and evaluates the
impactit will have on society and the environment.
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 Investment sarecappedat
15% off undsizeor Rs.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, and Mr.Ramesh S.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 United Nation’s
Sustainable Development Goals (SDGs) by 2030.”
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, terminal value
of a business, and of using relevant frame works and metrics in impact
investment.
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 on sustain ability as well as generating financial returns.
Mr.
Yogesh Andlaysaid, "Social businesses have the potential of large-scale
transformation and 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 such social
innovative businesses.
This fund will provide an experiential
learning opportunity to the students tounder stand Environment,
Sustainability and Governance issues. And build their capabilities to
become whole some servant leaders having empathy , selflessness, and
humility.”
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 the commitment and passion of our young students to societal
good. It will help make a positive social 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, socially relevant application, as they identify, mentor and
grow the ventures to also deliver reasonable returns to fund investors.
It is an intrinsically valuable lesson to imbibe as a future business
leader.I hope this inspires students from other in stitutions in India
to a lsotakethisup”
The B-school further mentioned the impact
investment fund is to create an impact benefitting society 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 other in stitutes.
Working
with a Board of Directors, and Advisory Committees, all Fund
operations, investment sand exits will be managed by the Students.The
Founding Student Team has 18 members.
IIF is also looking at
collaborating with Global Impact Fund Collaborative,whichhas 11 in
stitutesasa part of it (inclusive of IIMU),The institutes that are apart
of the collaboration are, Berkeley-Haas Impact Fund, Chicago Booth -
Tarrson Impact Investment Fund, Columbia – Microlumbia,Dartmouth - Tuck
Social Venture Fund, Duke - Fuqua Sustainable Impact Fund, HBS - Harbus
Foundation, IFIC - IESE Impact Investing Fund,LBS - Student Impact
Investing Fund, Michigan
-Michigan Climate Venture Fund, Michigan
- Social Venture Fund, Stanford- GSB Impact Fund,UCLA-Anderson Venture
Impact Partners,and Wharton-Whart on Impac t Investing Partners.