PE funding for dalits

Did you know that there is a PE fund only for the dalits? Well, we are talking about a PE fund started by a dalit and for the dalits – Varhad Dalit Fund. The first question which comes to mind is – why this discrimination in activities like PE funding too?

But we sitting in the cool environs of our office may not be aware of some of the plights of the SC/ST. Majority of these people in SC/ST continue to feel discriminated, do not have access to seed capital and relied on friends for angel money, banks remain wary to lend them money. In fact lack of funding is stated to be a stumbling block for many aspiring dalit entrepreneurs. And it is for these reasons that this Dalit Fund was started. The Dalit Venture Fund, initiated by the Dalit Indian Chamber of Commerce & Industry, was started last year and it got an initial contribution of Rs 10 crore by the Small Industries Development Bank of India. The fund aims to raise Rs 500 crore over 10 years and finance Dalit entrepreneurs to set up their businesses. The vision is to make 1,000 "SMEites" rupee billionaires by 2023.

The good news here is that a Varhad Dalit Fund has become a signatory to the United Nation’s Principle of Socially Responsible Investment (UNPRI), the second such PE fund after IDFC to achieve this distinction and one of 150 general partners in the world.

Being a signatory to the UN principle would mean that funds will be provided only to companies that strictly follow three principles — environmental, social and governance. The environmental principle entails working toward a sustainable environment in addition to compliance with pollution guidelines. The social principle would mean being considerate to the community around a plant and consumers, while taking care of employees. Governance mainly refers to compliance with all the rules and regulations of the land, to prevent corrupt practices.