IIM Udaipur introduces student-driven Impact Investment Fund

IIF will be supported in five goals from the United Nations Sustainable Development Goals – zero hunger, good health and wellbeing, quality education, clean water and sanitation and affordable and clean energy. 

Indian Institute of Management (IIM) Udaipur introduced a student-managed Impact Investment Fund (IIF) focusing on investing in early-stage projects or start-ups that create a social and environmental impact on society. According to the information provided by the b-school, Impact Investment Fund (IIF) initiative by IIM Udaipur has been launched to support entrepreneurs who have the potential to leverage their expertise and skills to create an impact on society and environment in a sustainable manner.

IIF will be supported in five goals from the United Nations Sustainable Development Goals – zero hunger, good health and wellbeing, quality education, clean water and sanitation and affordable and clean energy, a statement by the institute said.

It further added, “IIF will play an important role by bridging the gap between potential investors in social entrepreneurship and entrepreneurs by scouting the Indian market, understanding the objectives of both investors and entrepreneurs, aligning the fund’s objective of creating an impact, and awarding the fund to the entrepreneur along with the knowledge and operational support. IIF recognizes the industry of the project, the benefit of the product or service, and evaluates the impact it will have on society and the environment.”

According to IIM Udaipur, the fund will be an ‘Evergreen Fund’, operating financially within IIMU IC as a Section 8 Company, with provision for co-investing. Fund size is estimated to be seven Crores in five years. Approximately 12-17 companies will be invested in at any point of time. Individual investments, however, are capped at 15 per cent of fund size or INR 40 lakhs.

Working with a board of directors, and advisory committees, all fund operations, investments and exits will be managed by the students. The Founding Student Team has 18 members. IIF is also looking at collaborating with Global Impact Fund Collaborative, which has 11 institutes as a part of it (inclusive of IIMU).

Talking about the launch of the initiative, Professor Janat Shah, Director, IIM Udaipur, said, "It is a matter of great pride and satisfaction to see this student-driven initiative take seed in India through the commitment and passion of our young students to societal good. It will help make a positive social impact through the venture investment and mentorship support it provides.”

He further added,“Importantly, it will also give the students an opportunity to put their classroom learnings to a practical, socially relevant application, as they identify, mentor and grow the ventures to also deliver reasonable returns to fund investors. It is an intrinsically valuable lesson to imbibe as a future business leader. I hope this inspires students from other institutions in India to also take this up.”

The B-school further mentioned the impact investment fund is to create an impact benefitting society and our environment. Being the first student-led impact investment fund in India intends to promote a culture of impact investing in India by spreading awareness and inspiration to other institutes.

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