The Social Entrepreneurship Talisman

I recall my school textbooks’ inside cover page, where one of Gandhiji’s message used to be printed –

“I will give you a talisman. Whenever you are in doubt, or when the self becomes too much with you, apply the following test. Recall the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him [her]. Will he [she] gain anything by it? Will it restore him [her] to a control over his [her] own life and destiny? In other words, will it lead to swaraj [freedom] for the hungry and spiritually starving millions? Then you will find your doubts and your self melt away.”

It is only after considerable life experiences, one is able to appreciate the empathic depth of Gandhiji’s ethical decision making framework, and the courage and resilience of those who embark on a lifelong journey, of enabling lives of the less privileged in our society.

These enabling initiatives are often structured as social entrepreneurship or social impact ventures. One must not conflate social entrepreneurship as necessarily a non-profit enterprise. Non-profits are typically structured as charitable organizations, while social impact ventures can take on a variety of legal structures, including for-profit corporations. In terms of revenue model, non-profits rely on donations and grants to fund their operations, while social impact ventures generate revenue through the sale of goods or services. Social impact ventures measure their success based on both financial returns and social impact.

The key metric for social entrepreneurship is the number of people impacted positively by the innovative solutions of the social enterprise.

One of the most successful examples of non-profit social entrepreneurship in India is Akshaya Patra, a non-profit organization that provides quality mid-day meals to over 1.8 million children in government schools across 12 states. A few months back Rashmi Bansal (author of Stay Hungry, Stay Foolish) visited our office and gave us her book God’s Own Kitchen. It’s a fascinating read – highly inspiring, especially the bits about highly accomplished leaders finding far greater satisfaction in driving social change than in their next corporate promotion.

Similarly, there are for-profit social enterprises such as Vaatsalya healthcare (affordable healthcare), Indian School Finance Company (education), VBHC Value Homes (affordable housing), Suminter Organics (agriculture), Ankur Scientific (energy), Waterlife (water & sanitation), Grameen Financial Services (financial inclusion), Goodera (Corporate Volunteerism) and Rangsutra Crafts (livelihoods promotion).

In the end, going beyond operational and financial metrics, grants, and government support, the secret ingredient for a successful social enterprise invariably boils down to the indefatigable passion of its founders. How steadfastly and how long could they adhere to Gandhiji’s talisman?

We at ESV would love to leverage our network to contribute to the success stories of such inspiring social entrepreneurs.

Ecosystem Ventures This Week

Key Highlights – Events

We are thrilled to share that Ecosystem Ventures hosted the 3rd pitch event of 2023 this week, where one of our shortlisted startups pitched to angel investors, who joined either remotely or graced our office with their presence.

To view our active deals visit here.

Startup Funding Summary

Ace Turtle, Bengaluru-based e-commerce platform, has raised $34 Mn in Series B funding from Vertex Growth, SBI Investment Co Ltd, Farglory, Lesing Nine, Stride Ventures, Tuscan Ventures Trifecta Capital, Vertex Southeast Asia and India and Innoven Capital – Read More

Pando, Chennai-based logistics platform, has raised $30 Mn in Series B funding from Iron Pillar, Uncorrelated Ventures, Nexus Venture Partners, Chiratae Ventures, Next47, David Dorman, Scott Kirk, Tom Noonan, Baskin-Robbins, Neiman Marcus, Nick Mehta and Amar Goel – Read More

THB, Gurgaon-based healthcare SaaS startup, has raised $20 Mn in a funding from Filter Capital, Edelweiss Discovery Fund, Cornerstone Venture Partners Fund, Healthquad and Other HNIs – Read More

Pocket FM, Gurgaon-based audio OTT platform, has raised $16 Mn in a funding from Silicon Valley Bank – Read More

ZestIOT, Hyderabad-based IoT & AI enabled aviation platform, has raised $7 Mn in Series A funding from IvyCap Ventures and Loyal VC – Read More

M&A Snippets

Mumbai-based proptech platform Aurum PropTech has acquired Mumbai-based neo-realty investments platform Myre Capital for an undisclosed amount – Read More