New Delhi: The Indian Institute of Management (IIM) Udaipur has launched a student-managed Impact Investment Fund (IIF) focused on investing in early-stage projects or startups that have a social and environmental impact on society.
IIM Udaipur’s Impact Investment Fund (IIF) initiative aims to support entrepreneurs who have the potential to use their experience and skills to make an impact on society and the environment in a sustainable way.
Ventures, IIM Udaipur said in a statement, is supported by five goals of the United Nations Sustainable Development Goals: zero hunger, good health and well-being, quality education, clean water and sanitation, and clean and affordable energy.
The institute also said: “IIF will play an important role in bridging the gap between potential Social Entrepreneur investors and entrepreneurs by researching the Indian market, understanding the goals of investors and entrepreneurs and aligning the fund’s aim to make an impact and grant the fund to the entrepreneur along with the knowledge and operational support.
IIF recognizes the industry of the project, the benefits of the product or service and assesses the impact it will have on society and the environment.
According to IIM Udaipur, the fund will be an “evergreen fund” financially within IIMU IC operates as a Section 8 Company with provisions for co-investments. The size of the fund is estimated at Rs 7 crore over five years. About 1,217 companies are invested at the same time. However, individual investments are limited to 15 percent of the fund size of Rs 40 lakhs.
In cooperation with a board of directors and advisory committees, all operations, investments, and outflows of the fund are managed by the students. The Founding Student Team has 18 members.
IIF is also considering collaborating with the Global Impact Fund Collaborative, which has 11 member institutes (including IIMU).
During the launch of this initiative, Prof. Janat Shah, Director of IIM Udaipur said, “It fills me with great pride and satisfaction to see that this student initiative has its origins in India through the students’ commitment and passion for our youth Social Good It will help create a positive social impact through the venture investment and mentoring support it provides.
Most importantly, it also gives students the opportunity to put what they have learned in the classroom into practice Applying socially relevant applications as they identify, advise and grow companies so that they also provide reasonable returns for fund investors is an inherently valuable lesson for you as a future corporate leader to absorb.
I hope this will also inspire students from other institutions in India,” added Professor Shah. The B-school also mentioned that the Impact Investment Fund aims to make an impact that benefits society and our environment.
As the first student-run impact investing fund in India, it intends to foster a culture of impact investing in India by spreading awareness and inspiration to other institutes.