Tuesday, 17 June 2025
Villgro, in partnership with 360 ONE Foundation – the CSR arm of 360 ONE Group, designed ‘Capital for Impact’ – a program focused on catalytic blended finance, aiming to unlock debt for high-impact enterprises working on climate-resilient agriculture, rural livelihoods, and environmental innovations. In a testimony to the program’s trailblazing success, it has, to date, utilized Rs 2.35 Crore in philanthropic capital to unlock Rs 17.9 Crore in debt funding for 11 enterprises currently being supported under the program, thereby achieving a 7x multiplier of funds into sectors where traditional credit would not have stepped in.
Innovation is essential to break the status quo and address India’s deep-rooted developmental and social challenges. Yet, early-stage social enterprises—particularly those working with low-income and climate-vulnerable communities—struggle not just to scale but often to survive. Despite their potential for transformative impact, these enterprises face a major roadblock: a lack of access to affordable and timely capital. This financial gap severely limits their ability to grow and deliver vital solutions to the communities that need them the most.
To bridge this financing gap, Villgro—India’s leading social enterprise incubator—joined hands with 360 ONE Foundation, the CSR arm of 360 ONE Group, to design the ‘Capital for Impact’ program. This initiative is centered on catalytic blended finance with the goal of unlocking debt for high-impact enterprises in climate-resilient agriculture, rural livelihoods, and environmental innovation. In a powerful testament to its success, the program has turned Rs 2.35 crore in philanthropic capital into Rs 17.9 crore in debt funding for 11 social enterprises—achieving a 7x financial multiplier in sectors where traditional credit was unavailable.
Securing debt has historically been a major challenge for social enterprises both in India and globally. These ventures often fall into what is known as the “missing middle”: too large or complex for microfinance, too early-stage, unproven, or asset-light for commercial debt, and too mission-driven to attract traditional venture capital. According to studies by the International Finance Corporation (IFC) and Intellecap, 70–80% of early-stage social enterprises are rejected by formal lenders. Villgro’s past blended finance efforts confirmed these trends—mainstream financial institutions frequently turned down promising applicants due to early-stage risk profiles, lack of profitability, limited collateral, and unconventional business models that didn’t align with standard risk assessment templates.
This is precisely where the Capital For Impact program has made a game-changing difference. By de-risking loans through a catalytic structure, it enables lenders to approve funding that would otherwise be considered too risky. The model provides a first-loss coverage guarantee through cash collateral, unlocking funding for otherwise unbankable enterprises—without requiring them to give up equity or compromise on their mission.
Over the next two years, the program aims to impact more than 23,000 marginalised farmers across India by improving access to climate-resilient, income-enhancing solutions. Beyond increasing farm incomes, the initiative will advance broader goals such as promoting sustainable agriculture and regenerative practices, empowering women economically, improving market access and productivity, and encouraging environmentally responsible methods like reduced chemical use.
Vibha Sharma Tilwalli, Lead – Impact Finance at Villgro, remarked, “We’ve seen how early-stage impact-first enterprises often struggle to access aligned capital. But when blended finance is rooted in deep sectoral understanding, it can rewrite the rules—making the ‘unbankable’ investable. The Capital For Impact initiative has not only unlocked Rs 17.9 crore in viable lending but also demonstrated how philanthropic capital can be strategically deployed to build a scalable, replicable model for impact finance.”
Saumya Lashkari, Director & Board Member at 360 ONE Foundation, added, “Capital for Impact is reshaping how we think about risk, innovation, and financial inclusion. It shows how even relatively modest catalytic funds can unlock significantly larger debt investments and deliver lasting grassroots impact. This is a pivotal step toward a more responsive and resilient impact ecosystem.”
Funded through CSR-compliant grants and implemented by DST-recognised incubator Villgro, Capital For Impact uses a blended finance approach to enhance the creditworthiness of early-stage social enterprises. By working with impact-aligned lenders such as NABKISAN, Caspian, and FWWB, the program facilitates collateral-free loans at concessional rates. Villgro also provides ongoing technical assistance and mentorship to ensure these enterprises are equipped for responsible loan utilization and repayment—ultimately helping them sustain, scale, and deepen their impact where it matters most.
