18 June 2025, New Delhi: In a bold move to bridge the critical funding gap faced by India’s early-stage social enterprises, Villgro, one of the country’s leading social enterprise incubators, in partnership with 360 ONE Foundation, the CSR arm of 360 ONE Group, has mobilized ₹17.9 crore in debt financing through a pioneering initiative titled ‘Capital for Impact’. The program has unlocked this substantial sum using just ₹2.35 crore in philanthropic capital—achieving an impressive 7x fund multiplier for underserved sectors like climate-resilient agriculture, rural livelihoods, and environmental innovation.
India’s social enterprises, especially those catering to low-income and climate-vulnerable communities, often find themselves stranded in a financing void. Considered too complex for microfinance, too early-stage for commercial banks, and too mission-driven for traditional venture capital, they routinely struggle to raise affordable and timely capital.
According to studies by the International Finance Corporation (IFC) and Intellecap, 70–80% of early-stage social enterprises are denied credit by formal financial institutions. Their challenges range from lack of profitability and collateral to limited credit history and unconventional business models—factors that scare off traditional lenders.
‘Capital for Impact’, launched to solve this systemic exclusion, de-risks lending for impact-first enterprises using a blended finance model. It leverages CSR-compliant grants and cash-collateralized first-loss guarantees to give lenders confidence while maintaining the mission integrity of the borrower. Lending partners like NABKISAN, Caspian, and FWWB have joined the movement, offering concessional, collateral-free loans to these early-stage ventures.
“Blended finance, when rooted in sector expertise and enterprise realities, can rewrite the lending rules,”said Vibha Sharma Tilwalli, Lead – Impact Finance at Villgro. “This program has proven that ‘unbankable’ enterprises can be investable—with the right capital architecture.”
Over the next two years, the initiative aims to directly benefit over 23,000 marginalised farmers, enhancing access to income-generating, climate-resilient innovations. But the impact doesn’t stop at livelihoods. The program will also foster sustainable practices, boost women’s economic participation, and promote environmentally responsible farming models.
Saumya Lashkari, Director and Board Member at 360 ONE Foundation, emphasized the broader vision: “This is a proof of concept that small catalytic capital can unlock exponentially larger debt, creating deep last-mile impact. Capital for Impact is reimagining risk, innovation, and financial inclusion for India’s social enterprise ecosystem.”
In addition to financing, Villgro offers technical assistance and mentoring to ensure the financial preparedness of its supported enterprises, reinforcing loan repayment capacity and enterprise resilience.
As a DST-recognized incubator, Villgro is setting a national example of how philanthropic and development financecan align with market mechanisms to solve some of India’s toughest social and environmental challenges—without sacrificing speed, mission, or scalability.
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