ET BureauPUNE: Social entrepreneurs in India are using grant capital from some of the world best known philanthropists to create for-profit enterprises. These ventures, which have received grant money from Gates Foundation, Dell Family Foundation, and eBay founder Pierre Omidyar-backed Omidyar Network, are offering a range of services in sectors such as healthcare, education, energy water and sanitation.
Experts said there has been a near 100% increase in grants to social entrepreneurs in the last three-four years.
"Seed Capital for social ventures, especially experimental ones, where returns are uncertain and take longer to come is regarded as high risk by venture capitalists," said PR Ganapathy, chief operating officer of social investment firm Villgro.
"Grants lower this risk, steadies the venture and paves way for efficient business models in the area," he said.
Entrepreneurs rate the ability to focus on product development without worrying about money, as the biggest advantage offered by grants in the early stages of a business.
"Investors demand the full picture of your business, team members, break even strategy and marketing costs; grant making organisations ask more about the impact of your product, and proof of concept," said Ayesha Chaudhary, 30, co-founder of Windmill Health Technologies.
The company, which builds low-cost healthcare products and has come out with its first innovation — a neo-natal resuscitation device NeoBreathe — received a Rs 5-crore grant from the Gates Foundation under the IKP Grand Challenges Exploration in 2012.
Chaudhury teamed up with Abhijit Bansal, 31, in 2011, both fellows of Stanford-India Bio design programme to launch the venture.
"It is an exciting trend in India today because a hybrid model is being developed," said Swapnil Chaturvedi, founder of Samagra.
Experts said there has been a near 100% increase in grants to social entrepreneurs in the last three-four years.
"Seed Capital for social ventures, especially experimental ones, where returns are uncertain and take longer to come is regarded as high risk by venture capitalists," said PR Ganapathy, chief operating officer of social investment firm Villgro.
"Grants lower this risk, steadies the venture and paves way for efficient business models in the area," he said.
Entrepreneurs rate the ability to focus on product development without worrying about money, as the biggest advantage offered by grants in the early stages of a business.
"Investors demand the full picture of your business, team members, break even strategy and marketing costs; grant making organisations ask more about the impact of your product, and proof of concept," said Ayesha Chaudhary, 30, co-founder of Windmill Health Technologies.
The company, which builds low-cost healthcare products and has come out with its first innovation — a neo-natal resuscitation device NeoBreathe — received a Rs 5-crore grant from the Gates Foundation under the IKP Grand Challenges Exploration in 2012.
Chaudhury teamed up with Abhijit Bansal, 31, in 2011, both fellows of Stanford-India Bio design programme to launch the venture.
"It is an exciting trend in India today because a hybrid model is being developed," said Swapnil Chaturvedi, founder of Samagra.
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