Social business: Indian impact enterprises received USD 2.6 billion in equity investments in 2020, down 25 percent as compared to 2019, according to a report released by the India Impact Investors Council (IIIC).
In its report, IIIC—a member-based industry body set up to strengthen impact investing in India—said that deal activity continued despite the COVID-19 pandemic and its accompanying effects on the business and economic environment. There were 243 equity infusions and 13 exits by investors during the year.
Although overall investments were down 25 percent, there was a 16 percent jump in seed-stage investment volume. Investors showed most interest in early-stage enterprises in agriculture, livelihoods, and healthcare.
Overall, the education sector performed substantially better when compared to 2019, attracting investments worth USD 660 million across 47 deals; investment volumes were up 65 percent and transactions increased by 20 percent.
Most of the decline in impact investing in 2020 was due to the financial inclusion sector which saw a 35 percent decline in late-stage investments due to uncertainty over customers’ creditworthiness during the pandemic.
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