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The Need

There exists a misconception that any impact driven service and product can be delivered and scaled up if today's market principles are applied. There is a frenzy to attract private capital, into the impact investment space, with the promise that more social impact can occur at a faster pace without a compromise on financial returns - "doing good and making money".

There is a critical need to devise a new type of inclusive financial system, one that is willing to take on the risks and patience required to build sustainable local modelsrun by local entrepreneurs to solve complex social issues and scale impact delivery models.

The sector should strive to set its own bar and create benchmarks of processes that one day hopefully the existing markets could copy and make the world a more equitable place to live in.

Guiding Principles To Select Investee

At the Fund we will typically desire that the investee has/aspires for the following attributes

Prioritize underserved segments (either as owners, partners or customers) and seek to serve/ include even more disadvantaged and exclude segments.

Ensure that their internal processes and practices aim to counter the inequities inside and outside the organization over time.

They keep the economic and social value to the end user at the core of th investment.

They balance shared prosperity across all stakeholders and not just shareholders.

Treat all stakeholders with dignity and empower the disadvantaged segments in their relationship with the enterprise over time.

They recognize and facilitate the building of the ecosystem in order for their solutions to have a lasting impact.

Why SELCO Energy Access Fund?

Holistic Approach

Partnerships with incubators to support ecosystem building activities and operational preparedness of enterprises to absorb investments.

Practitioner Expertise

SELCO has 23 years of grassroots experience delivering last mile decentralized energy solutions for the poor in an inclusive manner.

New Funding Paradigm

New type of inclusive investment, risks and patience required to build models to solve social issues and scaleimpact delivery models in a sustainable manner.

How is the SELCO Energy Access
Fund different?

Size of Investments

Small

Entrepreneur serves a local need across a couple of villages within adistrict.

Mid-Size

Entrepreneur serves a couple of districts in a state.

Large-Size

Entrepreneur serves an entire state or a more states.

Investment Instruments

An equity based fund that suited to the needs of enterprises and delivery of sustainable solutions to the poor.

Geography

Focus on entrepreneurs and enterprises in Tier 2-6 cities ie beyond the main metropolitan cities of India. Preference will be for entrepreneurs in rural and semi-urban areas.

Mentorship

Complete access to holistic processes of a 25 year old financially profitable and highly impactful energy enterprise- SELCO Solar Light Pvt. Ltd.

Type of Entrepreneur

Focus on entrepreneurs/enterprises that are also based beyond tier 1 cities and are unable to tap into other sources of investment due to language, education, cultural etc.

Impact Thesis on the Investment Cycle

The goal of the fund is to support companies in various stages that provide sustainable energy services to the underserved in India.

Pipeline

Follow equal practices of ethical transparency expected of investees; invest as partners; field experienced frontline staff; timel response

Investment Process

Monitoring, advisory support to ensure sustained impact of investees; also disclose financial and social performance of the Fund itself.

Exit

Unique sourcing strategies that identify entrepreneurs/enterprises from Tier 2-6 cities and peripheral towns such as referrals from former cohorts or individuals, Read More

Due Diligence

Prioritize social and devise financial returns that takes into consideration gaps in the enabling conditions and such that deep social impactis not compromised.

Post Investment

The Fund shall shall seek responsible exits that perpetuate social impact. IPO or management buyout through private equity investment are very unlikely. Read More

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