This calendar quarter brings 19 investors, 11 investments in 8 funds, and 11 mainstream investors jumping into investing in impact businesses.
Unitus Capital has issued their 2014 second calendar quarter (Q2) impact equity research report. They noted that impact equity investing continued to be a key component of the India private equity landscape making up 31% of the overall private equity transactions in India.
Some of the key trends in impact equity investing in Q2 2014 included:
- A continuing trend of most investments in seed and early-stage impact businesses was observed, reflecting the youth of this sector;
- BFSI sector got back on the top with 5 transactions in Q2 2014 equaling their record in Q2 2013. The financial services sector picked up with 4 deals in Q2 2014 from 1 deal in Q2 2013, and was still among the leaders.
- Strong growth in IT & ITES sector with 3 deals in Q2 2014 compared to none in Q2 2013.
- This quarter saw a downward turn in the number of impact investors in the from 14 (Q2 2013) to 11(Q2 2014), but an upsurge from mainstream India- dedicated investors from 2 (Q2 2013) to 6 (Q2 2014);
- Some recent exits like Aavishkar’s first fund getting a full exit from Milk Mantra, have attracted an even greater investment interest in the impact investing sector from non impact investors.
Since Unitus Capital’s founding in 2008, they have raised US$1.1 billion for 52 high-quality impact businesses in India, Indonesia, the Philippines, China and Australia. The capital they have raised for their clients has enabled them to positively impact an estimated 39 million lives.