Capital for Impact’ initiative leverages ₹2.35 Cr in philanthropic capital to catalyze credit for early-stage ventures in climate-resilient agriculture, rural livelihoods, and environmental innovation.
In a transformative move to bridge the financing gap faced by early-stage social enterprises in India, Villgro, a leading social enterprise incubator, in collaboration with 360 ONE Foundation, the CSR arm of 360 ONE Group, has launched an innovative blended finance program titled ‘Capital for Impact’. Designed to support high-impact ventures working on climate-resilient agriculture, rural livelihoods, and environmental innovation, the program is already demonstrating significant success.
Despite their potential for societal transformation, many social enterprises targeting low-income and climate-vulnerable communities struggle to access affordable and timely credit. Traditional lending institutions often deem them too risky due to their early-stage business models, limited collateral, and unconventional innovations. According to studies by IFC and Intellecap, 70-80% of early-stage social enterprises are rejected by formal lenders, leaving a significant gap in their growth trajectory.
Addressing this challenge head-on, the Capital for Impact initiative has successfully utilized ₹2.35 crore in philanthropic capital to unlock ₹17.9 crore in debt funding for 11 early-stage enterprises — achieving an impressive 7x multiplier effect. This financial model deploys catalytic funding as a first-loss guarantee, enabling partnerships with impact-aligned lenders such as NABKISAN, Caspian, and FWWB, who have extended concessional, collateral-free loans to these ventures.
Vibha Sharma Tilwalli, Lead – Impact Finance at Villgro, emphasized the power of tailored blended finance in reshaping the lending landscape for social enterprises. “The Capital for Impact initiative has created a scalable model to overcome chronic under-financing of early-stage impact-first ventures, enabling them to scale without compromising their mission or equity,” she noted.
Over the next two years, the initiative is set to positively impact over 23,000 marginalized farmers across India, enhancing incomes and livelihoods while fostering climate resilience, women’s economic empowerment, market access, and environmental sustainability.
Saumya Lashkari, Director and Board Member at 360 ONE Foundation, highlighted the program’s broader implications: “Capital for Impact is reshaping how the ecosystem views risk, innovation, and financial inclusion. Even modest catalytic funds can unlock significantly larger debt flows and accelerate last-mile impact.”
Funded through CSR-compliant grants, and backed by technical assistance and mentoring, the program exemplifies how strategic philanthropy and innovative financial structuring can make “unbankable” enterprises bankable, unlocking their full potential to drive grassroots transformation in India’s development landscape.