How Villgro and 360 ONE Foundation Turned ₹2.35 Crore Into ₹17.9 Crore of Impact for India’s Marginalised Farmers

In a country where thousands of early-stage social enterprises struggle for survival, a pioneering partnership is showing how catalytic finance can turn capital-starved ideas into high-impact, scalable solutions. Social enterprise incubator Villgro and the 360 ONE Foundation have unlocked a powerful funding model through their joint initiative, Capital For Impact, proving that a small grant can trigger an outsized impact for India’s most vulnerable farming communities.

By deploying just ₹2.35 crore in philanthropic capital, Villgro and 360 ONE Foundation have successfully unlocked ₹17.9 crore in debt financing for 11 early-stage enterprises working across climate-resilient agriculture, rural livelihoods, and green innovations — a remarkable 7x leverage in sectors that traditional lenders often overlook.

The Finance Gap That Nearly Killed Innovation

Social enterprises are often hailed as engines of inclusive innovation; however, they frequently face a chronic lack of financing. Caught in the “missing middle” — too large for microfinance, too mission-focused for VC, and too risky for banks — many are left without a path to scale. According to studies by IFC and Intellecap, up to 80% of early-stage social ventures are rejected by formal financial institutions.

That’s where Capital For Impact steps in. By utilising philanthropic funds as first-loss cash collateral, the program derisks loans and provides mainstream lenders, such as NABKISAN, Caspian, and FWWB, with the confidence to offer unsecured, affordable loans to these high-impact businesses.

Real Impact, Real Farmers, Real Change

Over the next two years, this initiative aims to improve the livelihoods of over 23,000 marginalised farmers across India. Beyond just income boosts, the program enables farmers to access climate-resilient practices, promotes women’s economic participation, and strengthens market linkages—all while reducing environmental degradation through reduced chemical use and the adoption of regenerative methods.

Vibha Sharma Tilwalli, Lead – Impact Finance at Villgro, explains: “Blended finance, when deeply aligned with sectoral insights, can flip the narrative—transforming so-called ‘unbankable’ enterprises into viable, debt-ready entities without compromising their mission.”

Villgro not only facilitates access to credit but also provides technical assistance and mentorship to ensure borrower readiness and successful repayment.

Sustainable agriculture, food security, climate-smart approach focus areas at G20 deputies meeting

A Model for the Future of Impact Investing

Saumya Lashkari, Director at 360 ONE Foundation, said, “Capital for Impact is not just a fund—it’s a movement. We’ve created a replicable, scalable model that shows how relatively small grants can unlock massive last-mile value and reshape how we think about risk and innovation.”

This CSR-compliant model demonstrates how philanthropic funds, when structured innovatively, can trigger exponential change without waiting for government subsidies or high-risk private capital.

As Villgro and 360 ONE lead the charge in redefining early-stage finance for social enterprises, Capital For Impact stands as a beacon of what’s possible when compassion meets capital, and when impact-first innovation finally gets the fuel it deserves.