ISF to boost social and tech start-ups in India

MUMBAI, INDIA: Singapore-based DeConsel Group's CEO and group managing director Gaurav Shah has announced to start a social venture capital fund, IndiaSocial Fund (ISF), in India.

Unlike venture funds, Shah’s ISF is mainly focusing on identifying social and tech businesses, which can have a large social impact on society, people and environment. It aims to provide institutional funds to ventures which can have major social impact.

To raise through donations

“ISF will be entirely raised through donations of people and companies, which won’t impose ROI (return on investment) pressures on those businesses, but will commit required resources that can bring major social change to lives of Indian people,” says Shah, who is also ISF’s chief investment officer (CIO).

ISF already has a strong support and commitment of 6200 employees across organizations that have committed to donate Rs.100 per month towards the fund. This apart, ISF will take the retail route by reaching directly to common people and raise money through small donations.

“At present, we have the strong support and commitment of 6200 employees to donate money for ISF; however we have set a target of 150,000 people to help us raise funds by 2011 end. And we will invest Rs.25 crore in those social and tech businesses by March 2012,” he said.

Three tech-start up Co.'s identified

“Based on ISF’s criteria, we have identified about 4-5 social businesses, among which three are tech start-ups that would have major social impact on people and their lives,” Shah added.

Among the identified businesses is a Bangalore tech firm which has developed a login-based web browser that guarantees 100 per cent safe and secured Internet surfing experience to users. The net application has been programmed to eliminate any kind of search and access to malicious and explicit porn-related content in any form. Presently, it’s installed and used by students at 15 local schools.

While, a Kochi-based start-up selected by ISF is working on mobile application for health care and diagnosis. The tech venture is at the pre-research and development stage of its technology as it requires clinical trials and approvals. Another tech company works in the area of carbon emission control and reducing carbon particles from vehicle engines.

Interestingly, Shah’s ISF will also set-up a centre of excellence for incubating social and tech ventures and help them with support and consultancy of experts in executing ideas. Overall ISF wants to create and provide necessary support to the small and medium enterprises and start-ups that have positive impact on society and uplifting of underprivileged people in India.