Monthly Archives: March 2013

Government of India’s open data hackathon:

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Invitation for applications for the Indian government’s first ever hackathon mopped up 400 plus registrations in the first round of registration. If you missed the March 25th deadline, fret not, for the second round of registration commences on March 28th and ends April 2nd. The hackathon encourages creation of visualizations, short films or computer applications (apps) using the content of the 12th Five Year Plan. It will be held across 11 locations (online participation is also allowed), on April 6th and 7th, across the country and is being organized by the National Innovation Council (NIC) and the Planning Commission.

The main idea behind the hackathon is to boost awareness and generate interest in building of third-party apps for the Indian government’s open data portal (https://data.gov.in/). The portal was was set-up in 2012 to showcase open datasets, using which rich applications and visualizations could be built, through the use of open APIs (application programming interface).

Teams can be up to four individuals and there can only be multiple entries per team in different categories. Besides hacking, one can also take part in the conference is by ‘uncovering’ the event. This can be done by tweeting, blogging, taking pictures or through a short film.

Prizes to be won are different for each category:

  • Visualization category for each location:
    1st Prize: Rs. 15,000/- + Certificates of Appreciation to the team
    2nd Prize: Rs. 10,000/- + Certificates of Appreciation to the team
    3 Consolation Prizes: Certificates of Appreciation for the teams
  •  Short Films and Applications categories for each location:
    1st Prize: Rs. 25,000/- + Certificates of Appreciation to the team
    2nd Prize: Rs. 15,000/- + Certificates of Appreciation to the team
    3 Consolation Prizes: Certificates of Appreciation for the teams
  •  Prizes for online participants:
    Same as above for each category
  •  Prizes for UnCover winners:
    Certificates of Appreciations + Google Hangout opportunity with Shekhar Kapur

Here’s how you can register. Follow all the updates on Facebook here.

Lack of quality social enterprises is the issue and not supply of capital: Omidayar Network’s Jayant Sinha

According to Omidyar Network’s (ON) India head, Jayant Sinha for India’s fledgling social entrepreneurship industry, the problem is not the availability of capital, but the dearth of quality social enterprises (socents) to be invested in. “Capital is available in plenty, what we need is high-quality enterprises to invest in where the founders have the right credentials,” said Sinha at the sidelines of a press conference in Bangalore to announce a new investment in Kolkata-based iMerit Technology Services, an IT enabled services company that trains and hires youth from small towns and cities.

ON founded by eBay founder Pierre Omidyar’s is a venture philanthropic fund, that has invested about $113 million (roughly Rs 612 crore), in 35 companies in India, since its inception in 2010. “At the rate we are investing we should invest another $100-200 million in the next 3-5 years,” added Sinha.

ON, which has a sector-based approach to impact investing, mainly invests in social enterprises (socents) or non-profits. In India, 45 per cent of its investments have been into non-profits, while the remainder has been pumped into socents. The sectors that ON invests are consumer internet and mobile, entrepreneurship, financial inclusion, government transparency and traditional philanthropy.

Non-profit investees include Bangalore-based Akshara Foundation, a non-profit that focuses on elementary education, which received a $950,000 grant last year and Anudip Foundation, which focuses on creating livelihoods for disadvantaged youth. ON’s socent portfolio include energy platform company Agni Energy, classifieds firm Quikr, and Vistaar Technologies, which promotes financial inclusion.

Things are hotting up in the social enterprise (socent) investment space in India. Other venture funds with a focus on socents include Khosla Labs, Gray Matters Capital, Aavishkaar, Acumen Fund and Oasis Fund. Back-of-the-envelope calculations suggest that there is close a billion dollars to be invested in socents. The Indian government has plans to invest another $1 billion.

Hong Kong-based One Earth Designs to launch solar cookers in India

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Picture courtesy: One Earth Designs’ Facebook page.

Catlin Powers is a determined woman. As a research student from Wellesley College, she was high up in the Himalayas in western China, when she was told by the nomads, that the fumes from their stoves was killing them slowly. Solar cookers were the solution, but the ones available were heavy, and couldn’t be moved easily.

She came back, obsessed to find a safer solution, and spent two years living among the nomads and learning about their pain points and needs. She went on to co-found One Earth Designs with Scott Frank, a research student from Massachusetts Institute of Technology (MIT), to manufacture solar-based products, when she faced a problem related to the development of a new material needed to create solar cookers. Undeterred, she tracked down a retired engineer, whom she knew to have the creative chops to solve the problem. “He was spending his days surfing. I knocked on his door and convinced him to join us,” says Powers.

After meeting with success in China first, and subsequently in Japan and the US, Powers was in India in mid-March, to launch her company and find potential partners and distributors. Powers is in talks with one of India’s leading renewable energy players based in Bangalore for distribution and also a few of the Ministry of New and Renewable Energy (MNRE) approved sellers.

Solsource, the flagship product is subsidized by the Chinese government and sells for about Rs 7000 ($130) in countries like China, while in Japan and the US it retails for Rs 16,200 ($300). Powers hopes to sell it around Rs 2700 ($50) in India using local materials like bamboo, in some parts, instead of metal, from which it is usually made. The cost of solar cookers can vary in India. Companies that are accredited by the Ministry of New and Renewable Energy (MNRE) sell these at a price starting around Rs 4,000,

Lack of energy has many repercussions in India related to pollution, healthcare and education. Cognizant of this fact, the government has been promoting solar cooking since 1982, with varying degrees of success. India deployed, what was touted as the world’s largest solar cooking system, at the Saibaba Ashram at Shirdi, Maharashtra. The Jawaharlal Nehru National Solar Mission has plans to generate 20,000 MW of solar power by the end of the 13th Five Year Plan in 2022. The target for Phase II of Jawaharlal Nehru National Solar Mission (JNNSM) is an overall target of deployment of 50,000 solar cookers.

Depending on the response in India, One Earth Designs plans to roll out water purification systems and solar cookers equipped with automated cooking settings (these won’t require constant monitoring), later this year. Over the next two years, there are plans to commercialize thermal heating and electricity systems using solar power, which will then complete the overall energy needs of a household. “We will launch our other products at intervals over the next two years. Depending on the dynamics of the market, we may consider setting up a company as well as local manufacturing and assembly,” confirmed Powers.

 

Why India needs social entrepreneurship to succeed.

india

India is at the crossroads. After a decade of high GDP growth rates of around 7-9 per cent, the 2008 global recession poured cold water on the Indian growth story, in 2012-13, growth is expected to be a tepid 5 per cent. The growth post-liberalization, benefited the rich, (the increase in number of Indian millionaires was second only to China), and a newly created middle class. What of the rest? Most of India or 400 odd million people live on less than $1 a day. In the latest 2012 human development index (HDI) report, India languishes at 136, out of 187 countries .

The players who can affect positive change- the government and NGOs are trying, with varying degrees of success, but their interventions fall woefully short of what is needed to combat India’s pressing problems. Capitalism’s fruit was supposed to drop down to all, but the much touted trickle-down economics, hasn’t delivered. Income inequality has doubled in the last 20 years. Einstein said famously, “We can’t solve problems by using the same kind of thinking we used when we created them,” perhaps what is needed now is a business as unusual approach. This is where social enterprises (socents) can play a role. They use market-proven business practices to solve social and environmental problems. In the world of socents, business and philanthropy collide, and strive to create a more equitable and sustainable world. They may not be the silver bullet for all of India’s gargantuan problems related to agriculture, poverty, infrastructure, healthcare and education, but they may perhaps be our best bet.

With a business as unusual approach, socents are turning rice husk into electric power (Husk Power Systems), employing the power of the sun to bring light (Selco), bringing healthcare to rural areas (Vaatsalya Healthcare), introducing solar-powered ATMs to villages (Vortex Engineering), providing emergency ambulance services (Ziqitza Health Care), teaching English (EnglishHelper) and giving access to affordable potable drinking water. Socents are identifying markets and problems that have been ignored and solving them using innovative products and services. Most of the global case studies on successful socents are peppered with Indian examples.

Social entrepreneurship could also help India avoid the mistake China made with its growth. The Red Dragon’s phenomenal economic growth has come at the cost of air, water and soil pollution. Anger over pollution has replaced land disputes to become the chief cause for social unrest in China. Socents with their inherent vision of sustainable growth that is environmentally friendly are well equipped to balance growth with environmental concerns.

While India had made giant strides in the last decade in the area of social entrepreneurship, this is just the beginning and more is needed. Government needs to step up to the plate and make it easier for both foreign and domestic investors to invest in socents. A better regulatory framework, smoother taxation policies, creation of multiple investment bodies, using innovative investment vehicles like UK’s social impact bonds, co-investing in technology based socents, creation of a separate index like Singapore’s Impact Investment Index (IIX), are just some of things it needs to do.

One of the most interesting developments in the past few months has been the CSR bill proposed by the government where 2 per cent of profits for big companies will be used for social programmes that includes investment in social business ventures. This could be a huge boost for socents, and give them access to more than a billion dollars in precious capital, that is needed especially at the seed and early stages. Husk Power Systems, for example, benefited from the grant that it got from Shell Foundation in its early days of technology creation.

Growth in the next 100 years cannot follow the road that capitalism took us in the last century, the earth’s finite resources are already depleted, and the environment already reeling from over-exploitation. There’s already talk of social capitalism and creative capitalism in the US and Europe. India need not be far behind, and design its own version of capitalism, one that uses social entrepreneurship in abundance.

Apply for Rs 1 crore funding from the India Impact Economy Innovations Fund (IEIF) now.

Are you are a social enterprise (socent) or an organization associated with impact investing looking for funding?

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Pic courtesy: Dasra

Here’s an easy way to procure more than Rs 1 crore ($200,000) as a grant. Dasra, Omidyar Network, and The Rockefeller Foundation are inviting proposals from organizations that are making a difference to the Indian impact economy, specifically spurring the growth of the impact investing industry and the socent sector.

The aim of the fund, dubbed India Impact Economy Innovations Fund (IEIF), is to support socents that use market driven solutions to alleviate poverty and promote sustainable development. Dasra will administer the fund, the lead investor in the fund is The Rockefeller Foundation, its also supported by Omidyar Network, the philanthropic investment firm founded by eBay founder Pierre Omidyar.

If you haven’t applied yet, the deadline is looming large; all proposals need to be submitted by March 15th, 2013.

There are 5-8 grants to be given away, for a period of 12 months, total funds that will be disbursed will be to a tune of approximately Rs 4.32 crore ($800,000). More than one grant proposal maybe submitted per organization. Applicants need to bear in mind the funding priorities, that stem from the directions set at the Impact Investing forum (IIF), held on January 16 and 17, 2013. The grant areas are early stage capital solutions, fostering entrepreneurial ecosystems, producing research on policy development, promoting and establishing impact investing industry infrastructure, developing market ecosystems for specific sectors and forming leadership and networking platforms for common actions.

Apply:  Interested organizations can apply by sending the completed forms and other required documentation to ieif@dasra.org, or by mailing it to the following address

Dasra
Attention: Inchara Shanthappa
M.R. Co-op Housing Society,
Bldg no. J/18, Relief Road,
Off Juhu Tara Road, Santacruz (W),
Mumbai 400 054

Finalists will be announced end-April, 2013 and the grants disbursed between May and June, 2013.

And so, it begins.

The beginning.

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Courtesy: http://www.freefoto.com

India is often referred to as a laboratory for social entrepreneurship, where innovation is brewing, and new products and services are being dished out thick and fast. Things are looking up after the doom and gloom post the 2007-08 recession and the micro-finance controversy that rocked the industry in 2010.

There are a lot of social enterprise focused VCs that are chasing deals at present. The trend in social investing started in the mid-2000s with VCs like Acumen Fund and Aavishkaar Venture Fund, and more have followed suit like Omidyar Network, Khosla Labs and India Social Fund (ISF). Now, there maybe close to a billion dollars chasing SE investment. These social VCs have been buoyed by SEs that are growing in scale and revenues, and even providing successful exits. Aavishkaar, which was started in 2001, has had a few exits, these include Rangsutra, an artisan-owned handicrafts company, Servals Automation, a rural energy solutions provider and Shree Kamdhenu Electronics, an electronic milk collection services company. According to the Intellecap SE study, most of the investments are bunched up around agriculture, education, healthcare and energy.

The industry requires talent; and that is being supplied by institutions, like the Tata Institute of Social Sciences (TISS), some of the IIMs, ISB and many other B-schools. The government too has recognized the huge potential SEs have in tackling age-old problems related to education, healthcare, agriculture, energy, water and sanitation. In January, 2013, Sam Pitroda, chairman for the National Innovation Council, announced a $1 billion fund to invest in enterprises that tackle problems at bottom of the pyramid.

But more is needed: attracting top talent, encouraging the growth of impact investing as an investment vehicle, an exchange purely for SEs to raise capital like Singapore’s IIX and less regulation and more incentives from the government.

From its first baby steps, the SE industry is ready for its next jump into adolescence and adulthood.

Billionbulbs will track this journey.