[dropcap]P[/dropcap]hilanthropic organization Michael and Susan Dell Foundation (MSDF) has earmarked an additional $50 million (Rs 333crore) towards investments in India that will primarily used to invest in early-stage ventures over the next three years.
One of the world’s biggest philanthropic organizations, MSDF is an active impact investor in India focuses mainly on backing early-stage ventures operating in the education, skills and financial inclusion segments. The amount earmarked will be in addition to the investor’s existing vehicles, which includes its Delaware-registered, proprietary seed-stage fund, India Educational Investment Fund.
Debasish Mitter, country director – India, MSDF told media, “A large part of the $50 million will go towards (funding) startups, and this is also because, while we are an extremely active impact investor, we are increasingly finding that the venture capital space is struggling to get money, and ventures in areas of our interest, are even more starved.”
“We are not getting enough of the deals that we would like to do. We feel there is a tremendous fit between a venture philanthropist approach to seed funding, and what the space needs,” added Mitter.
Two early-stage funds in the country, Limited Partner – Unitus Seed Fund and social business incubator Villgro-launched Menterra Venture Advisors have been backed by the foundation.
Mitter also told media that MSDF is looking to increase its offerings to ventures, which currently include, grants, equity financing, debt and non-convertible debt offerings.
“We are willing to take whichever investment tool, which best supports the requirement of solving the business problems that we are getting to solve. We have over 25 portfolio companies in India, making us one of the most active investors in the country. The groundswell of entrepreneurship is so strong in India that we believe it will be short-sighted of us not to tap into it,” he said.
Founded by Dell founder Michael Dell and his wife, Susan in 1999, MSDF opened its India office in 2006. The Foundation was also one of the early backers of microfinance institutions, Janalakshmi Financial Services and Ujjivan Financial Services.
