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Investments FAQ

WHAT TYPES OF INVESTMENT TOOLS DOES THE FOUNDATION DEPLOY?

The foundation uses Program-Related Investments to catalyze sustainable, scalable, and measurable impact. We have the flexibility to deploy funding tools that best serve these objectives. To date, this has included equity, debt, convertible notes, guarantees, and mezzanine or subordinated debt. We have also utilized Development Impact Bonds and Pay for Performance instruments. Funding is subject to regulatory provisions in each geography.

IS THERE A PREFERRED INTEREST RATE ON THE DEBT FACILITIES OFFERED BY THE FOUNDATION?

The interest rates are aligned with, and concessional to, market rates in each geography/sector.

IS THERE A CERTAIN SHAREHOLDING THAT THE FOUNDATION LOOKS FOR IN ITS EQUITY INVESTMENTS?

The foundation’s shareholding is a function of its investment amount and the company’s valuation, which varies for every investment. In India, the foundation’s equity stakes range from 8 – 25%.

AT WHAT STAGE IN AN ENTERPRISE’S JOURNEY DOES THE FOUNDATION INVEST?

The foundation deploys equity capital in an early phase of an enterprise journey, typically Series A or B. In certain cases, we have also invested at Seed or Pre-Series A stage.

DOES THE FOUNDATION PLAY AN ACTIVE MANAGEMENT ROLE IN ITS INVESTMENTS?

Yes. The foundation partners with high-quality, mission-aligned founders and management teams to support them in creating and sustaining scalable impact. We will typically nominates a representative to the Board of Directors of the enterprise.

HOW DOES THE FOUNDATION EVALUATE THE SOCIAL IMPACT/PURPOSE OF A FOR-PROFIT ORGANIZATION?

The foundation uses similar impact measurement metrics for its support to nonprofit and for-profit enterprises. Depending on the programmatic objectives of the funding support, such measurement metrics can include change in learning levels, access to jobs, increase in income levels, etc.

HOW DO YOU EVALUATE AN INVESTMENT REQUEST?

The foundation evaluates each request in the context of its programmatic priorities and objectives. Evidence/measurement of positive social impact is a key filtering criterion for the foundation. Beyond that, investment requests are tested for financial viability, scalability, inherent risks, and strength of the founders and management team.

IS THERE A PARTICULAR FORMAT IN WHICH THE APPLICATION/PITCH DECK NEEDS TO BE SUBMITTED?

No. For investment requests, the foundation does not prescribe any standard format.