Online microfinance platform RangDe invites equity investments for social benefit
Wednesday, January 29, 2014
Just as a disruptive model is beginning to sear through the politics of the country, an organisational innovation in the social sector has burst through the old order, threatening to churn impact investing and philanthropy as it is practised today. A not-for-profit company, infused with the commitment and passion of ’jholawala’ NGOs and adorned by the rigour and trappings of a true-blue business entity, is inviting equity investments from donors-investors with the promise of returning their principal anytime they want after two years
The company—valued at a bold Rs 50 crore on the basis of social performance metrics, something unheard of in the non-profit sector— also offers quarterly audits and guidance on impact and sustainability akin to any publicly listed company. The idea is to channel growth capital to social businesses without saddling them with the negatives often associated with commercial capital focused sharply on profits.