Inve sti ng a t t he Bo tt om o f the Pyra mi d

Micr o v entur e ca pita l for Sus taina ble b us ine sses

Aavishk aar I ndi a Mi cr o Ve nt ure F und

Entr epr ene uri al Oppo rtuni ti es..

Entre pren eu ri al int erv ent ions do hav e the po ten tial to impac t
the bottom of the py rami d but the interv en tion st rat egi es vary
bas ed on appro ac h, choice and the scale of interve nt ion.

Large Corporate
Bus iness Ex pan sion in Rur al Mark ets

Bus iness I nterven tion for Social C ha nge Micro Equity

Provisions

Soc ial Su stain able En ter prise Donor Funded

BOP O ppo rtunit ies

Ru ral Pro du cts en terp rise s in the are a o f han di craf ts, agr i
pro duc ts, dai ry , ren ew ab le en ergy for ru ral ele ctrificat ion,
me di cinal herbs base d pro duc ts and many more .
So ci al Tec hnolo gy ini tiat ive su ch as N- Logu e (WL L), Dri shtee
(e -gov ernan ce), Vort ex (ru ral ATM), CK Shak ti (Local Lan guage
So ftware )
Fi nan cial In no vat ion based int er ve nt ions suc h as Microf inan ce
Re pli cat ion an d scale re qu ire ri sk cap ital wi th equi ty
feat ure! !
Why Vent ur e Ca pi tal?

Initial Idea, Larger

Business Business Maturing Sustainable
Formation Growth Business Enterprise

•Entrepreneur conceives •Business plan to grow •Business growth slows •Business enters small
idea business past micro •Focus on profit and stage
•Often a small stage efficiency •Pursues growth
proprietorship •Requires more opportunities to get to
•Generally micro or sub- infrastructure, addition medium and large size
micro in size of new products and
services
•Increase in headcount

•Entrepreneur works •Aavishkaar provides •Aavishkaar provides •Other investors join

with team financial support strategic and
•Aavishkaar provides operational support
business building
support
Why Vent ur e Ca pi tal?

To meet regulatory
capital needs and
growth needs

Start up Gro wt h Maturity

The
equity Conv ent ional
Gap Ven ture Capi tal Pri vat e Equ ity /IPO/
In stitution al
(N ot intere st ed Inv es tors
? in BOP)
(N ot Int eres ted in
BOP)
Aavishkaar Focus
Aavishkaar Micro venture Capital

Investment Thesis

AIMVCF seeks to achieve sustainable development in India by:

Investing in innovation and appropriate technology driven Small & Micro
enterprises that are
 socially relevant
 environmentally friendly
 commercially viable
 and have little or no access to established financial institutions
for risk or collateral free loans/Equity
Achieve Socio-commercial returns for its global investors
 Four Tier Evaluation Process

Evaluation concentrates on Decision made by Chief Executive

Rural Applicability, social based on the recommendation of the
relevance and presence of a Project Manager
organized
business model.
Decision taken by the management
Focus to understand the board to accept or reject the
motivations of the Entrepreneur, his proposal
ability to lead, integrity, honesty
commitment to the project along
with social benefits.
Decision by the Management board
on investment, size and valuation
Business evaluated on commercial based on the recommendation of the
parameters such as markets, Executive team
scalability, uniqueness of business
model, growth, return on
investment.

Term Sheet, Audit and Legal Due Investment made based on the
Diligence recommendation of the Auditor
Aavish ka ar
Po rtf oli o
Servals Automation Private Ltd

Se rvals is an a ppropriat e tech nol og y prov ide r f or ru ra l India. T he comp any h as t wo

produc ts : a n e nerg y eff icie nt ke rose ne burn er a nd a rain gun ir riga tion de vi ce. Bot h
produc ts were de sign ed by ru ra l innovat ors. Serva ls cu rre ntly ha s 7 emp loye es an d is
lo catene
Keros ed instChe
ove bunn rne
ai . rs – 7 0000 + sol d
– Sold bu rn ers wi ll s ave customers i n aggre ga te U S $ 500,000 duri ng their use ful li fe
(1 ye ar); gov ern men t fu el i mport burde n also re duce d by s ame amount [a ss ume s Rs.
100 ke rose ne e xpe nse per h ous eh ol d pe r mont h, re duce d b y 20% conse rvat iv ely)
Ra in gun – 17 0+ sol d
– A micro-irri gat ion de vice , also call ed an ov erh ea d sp ri nkl er. T he rain gun
produce s a n art ifi cial ra in by th ro wing out wa te r t o a dist anc e o f u p t o 90 f eet w it h
a 3 60 d egree rot at ion facili ty
– The siz e of t he drop s, the quant it y of wat er rele ase d and d istance a re s uch t hat it
provi des opt imum i rriga tion t o m any crop s whil e sa ving wa te r ot he rwi se wa st ed
throu ghRainf loo dGun
i rriga tion Kerosene Burner
SERVA LS : Impa ct of Micro equi ty Provision s
BUS INE SS MODE L

Orders Original Stove Burner

NGO’s
Manufacturers Retailers

Direct Demo’s and SHG’s

SERVALS Periodic visits
Layered Incentive
AUTOMATION Scheme

Supply

Manufacture
SERVALS: Commercial & Social Result
Aavishkaar
SERVALS performance- Financial
Investment
50000
40000
30000 Sales
20000 P rofits
10000 P oly. (Sales)
0 Linear (P rofits)
-10000 2004 2005
-20000

Equ ity inves tme nt

Year

of US $ 26,444 .
Social Parameters :Relationship with 10 large NGO’s, also Ri go ro us hand
supplied burners to service distressed victims in Tsunami. holdi ng su pp ort
over three years by
Won the International award of maximum fuel efficiency
Aavi sh kaar Mi cro
by Paraffin Safety Association of South Africa
Equ ity Fun d

Serv ing the Bo ttom of the Py rami d Pro fitab ly

Aavishkaar Portfolio Cont..

Shri Kamdhenu Electronics Private Limited (SKEPL)

Compa ny Ov erview
SKEPL pioneered the automation of the milk collection process at dairy cooperatives. The system
introduces transparency and efficiency and helps improve cooperative management. SKEPL has 32
employees and is located in Anand, Gujarat.

Social valu e
SKEPL products improve the operations of milk cooperatives, an effective business structure utilized
throughout India’s dairy industry. Cooperatives using SKEPL’s technology are more profitable,
improving the livelihoods of their members.
SKE PL: Impa ct of Micro equi ty Provision s

BUS INE SS MODE L

Orders Milk Milk Unions

Cooperative
Marketing effort with
Dealers and Sales
Team
SKEPL
Assembling & Supply

Outsource
Foreign Imports
Parts
SKEPL: Commercial & Social Result
SKEPL performance- Financial
Aavishkaar
400000 Investment
300000 Sales
200000 Profits
US $

100000 Poly. (Sales)

0 Linear (Profits)
1999 2000 2001 2002 2003 2004 2005
Equ ity inves tme nt
-100000
Year
of US $ 44,000 .
Social Parameters : Outreach with 600 Unions and co- Ri go ro us hand
operatives in Gujarat. Expanding to Maharashtra, MP & holdi ng su pp ort
Rajasthan.Recently won Manthan Award for best e- over two years by
content practices in e-business category Aavi sh kaar Mi cro
Equ ity Fun d

Serv ing the Bo ttom of the Py rami d Pro fitab ly

Aavishkaar portfolio contd…

Craftsbridge (I) Private Limited

Compa ny Ov erview
Craftsbridge is a design and marketing outfit with an outsourced production model in the area of
Indian handicrafts. The company’s mission is to design and market handicraft idea worldwide and
generate sustainable income for talented but economically challenged artisans from India.
Cr afts br idg e: Impac t of Micr o equi ty Provision s

BUS INE SS MODE L

Orders Corporate International

markets
Buyers
Marketing effort with
Designer samples
Craftsbridge NGO
Facilitator
Production & Supply

Outsource
Rural Handicrafts Producer
Production
Craftsbridge: Commercial & Social Result
Craftsbridge performance- Financial

900000
800000
700000
600000
Aavishkaar Sales
500000
400000
Investment Profits
US $

400 % com merc ial

300000 Poly. (Sales)
200000
Poly. (Profits)
100000
0
gro wt h ac hiev ed by
-100000
-200000
2001 2002 2003 2004 2005 invest ing equ ity of
Year US $ 100 ,000 .
Ri go ro us hand
Social Parameters : Outreach with 13 NGO & 100
holdi ng su pp ort
Craftsmen. Very small individual businesses in
over two years by
handicrafts are also part of Craftsbridge supply Chain.
Aavi sh kaar Mi cro
Equ ity Fun d

Serv ing the Bo ttom of the Py rami d Pro fitab ly

Tide Technocrats Private Limited

Compa ny Ov erview
Tide Technocrats operates in the space of Rural Energy Solutions. TTPL provides end to end
solutions for micro hydel installations and the alternative fuel needs for the power plants. It aims to
provide electrification in rural and far flung remote areas where bio mass creates avenues of
employment.
 Ti de
Impa ct of Micro equity Provision s
Techno cr ats:
BUS INE SS MODE L

Turbine Vendors ELC Vendors Biomass Customers

TTPL

Direct Selling Agents Coordinators

Coffee Plantations Coconut Farmers

 Ti de
Impa ct of Micro equity Provision s
Techno cr ats:

Recent Updates…

Aavishkaar has partly divested its stake and has made a partial exit from
TTPL.
Aavishkaar has also found a Long Term Strategic Investor (Velcan Energy,
France) for TTPL.

Shareholder % Stake before partial exit % Stake after partial exit

Sampath and Rajeshwari 72.4% 34.42%

stake
Aavishkaar India Micro 27.6% 14.56%
Venture Capital Fund
Velcan Energy - 51.02%
Aavishkaar portfolio contd…

Net Systems Informatics (I) Private Limited

Compa ny Ov erview
Net Systems (I) Private Limited is a company based in Mumbai, aims to create disabled friendly IT
infrastructure. It enables software and websites for the use of disabled, particularly those with vision
and auditory impairment. The company also provides Technical Writing outsourcing services.
Social valu e
N-Syst is trying to open up a world of opportunities for the disabled by making IT infrastructure
compatible to their usage.
N-S yst: Impa ct of Micro equity Provision s

BUS INE SS MODE L

Order IT ITCOMPANIES
(INTERNATIONAL)
Assignments Companies
(Domestic)
Marketing efforts with Direct
approach, Seminars & Workshops
Net Systems
Testing

Technical Writing

Accessibility
 N-Syst: Commercial & Social Result

Net Systems performance- Financial

Aavishkaar
80000 Investment
60000
Sales
40000 Profits
US $

20000 Poly. (Sales)

45% comme rc ial

0 Linear (Profits)
Q1 2005 Q2 2005
gro wt h ac hiev ed by
-20000
Year
invest ing equ ity of
US $ 40, 000 in si x
Social Parameters : Concentrated efforts towards mo nt hs.
increasing Accessibility awareness…
Ri go ro us hand
holdi ng su pp ort
over six mo nths by
Aavi sh kaar Mi cro
Equ ity Fun d
Serv ing the Bo ttom of the Py rami d Pro fitab ly
 Aavishka ar ’s New Investmen t

Naveen Gram Agrotechnologies Private Limited

Compa ny Ov erview
Naveen Gram Agrotechnologies Private Limited is a start up company, based in Rajasthan which
addresses and provides solutions for the challenges of awareness, availability and acceptability faced
by small enterprises. It aims to make an impact in the rural sector through development of a
distribution and marketing channel for rural products by tying up with innovative manufacturers.

Social valu e
Naveen Gram concentrates its efforts towards up gradation of rural processes through introduction
of technology.
 Aavishka ar ’s New Investmen t

Na vee n Gra m Ag ro te chn olog ies P riva te Li mi ted

BUS INE SS MODE L

Demand Agricultural and Rural demand

for Technology

Brand
Marketing efforts with
Introduction Demonstrations and Direct Efforts
Naveen Gram Dealers

Outsource Small Enterprises with

Technology Innovative Products and
Technology for Rural
 Aavishkaar support goes well beyond funding

Portfolio Company Aavishkaar Efforts

Servals • Introductions to customers within Aavishkaar’s network of
NGOs
• Continued strategic assistance

SKEPL • Continued efforts to improve financial discipline

• Assisting in MIS system development
• Using Aavishkaar network for business development

Craftsbridge • Restructured financial management, MIS

• Advised on new sales force compensation plan
• Providing export expansion advice
• Using Aavishkaar network for business development

TIDE • New promoter found

• Company restructured
• Aavishkaar sourced customer contracts
• Using Aavishkaar network for business development

The funded companies now use TALLY, the accounting software, to manage their
accounts and produce timely financial statements.
 Projects In Pipeline

Pipeline Projects Reason for Existence

C K Technologies Private Limited • Based in Chennai
• Prepares Multilingual Software

Vaatsalya Healthcare Solutions • Based in Bangalore

Private Limited • Provides Rural Healthcare Solutions

Dorgen Agro Bio Technology • Based in Chennai

Private Limited • Operates in space of Food Processing (Banana Based
Products)

Vortex Engineering Private • Based In Chennai

Limited • Manufactures Rural ATM’s

Farmers Trading Company • Based In Hyderabad

• Operates in sector of Organic Cotton
Potential Exit
Strategy
So cial In ves tor
with Local Foc us

Long term Promoter Buy

loan/ Fresh Back
EQUITY /
St able Micro
Enterpri se with a
su stai nab le mo del

Exi t Des ign  Venture Capitalist

Mi cro Ven ture thro ugh

Capi tali st Tak e out
financ ing
Some Facts..

Aav ish kaar has mad e six inv es tmen ts in last thre e years an d is in
the final st ages of di sbursi ng the sev en th inves tme nt .
Aav ish kaar has rai sed a cor pu s of Us $ 1.3 Mi lli on and is worki ng
on rai sing it to US $ 5 Mi lli on .
The Fun d is expe cted to make ret urn in the ran ge of 4-6% on an
IRR basi s by 20 10 .
The fund has alre ady inv es ted over INR 16 4 lakh s (USD 172, 000)
with an other di sb ursal of Ru pees 50 la khs (USD 110, 00 0) appro ved
and a ne ar term pi peli ne of ano ther Rs 93 lakhs (USD 215 ,000 ) and
a lo ng term pi pe li ne of USD 500 ,000o f prob ab le inve st men t. The
fund curren t corpu s woul d be full y invest ed by marc h 20 06.
 Investment Sectors Focus

• Agri Processing, Contract farming

• Technology intervention for improved outreach
and access
• Innovative Microfinance Start up
• Renewable Energy
• Handicrafts
Attracting Large Investors…

Wi th inc re ased mo men tum in Microf inan ce in re cen t years,

Aavishkaar has at trac ted ne w & large inve st ors tow ard s mak ing
equ ity invest me nt s in small en terpri se s an d MF I’s .
The ven ture capi tal fund is in the proc ess of en teri ng into
agre eme nt s wi th som e maj or play ers of the indu stry .
Aavishkaar is kn ow n for it’s ri gi d invest me nt cri teri a an d due
di ligenc e pro cess in its spac e.
With its stra tegi es an d manag emen t su pp ort , it has bee n su ccess ful
in turn ing aro und its inv est ee com pa nies…
 Management & Oversight
Board of Board of Trustees(*)
Mr. Arun Diaz: MBA, 28 Years
Trustees Banking Experience
Mr. Nilesh Mehta: MBA, Partner –
Infinity Venture
Management Advisory Management Board(*)
Dr. Anantha Nageswaran: Ph.D, MBA,
Board
Board Director, Global Economics and Asset
Allocation, Credit Suisse, Asia-Pacific
Mr. Arun Diaz: MBA
Ms. Jennifer Meehan: Microfinance &
Social Investing professional,
CEO formerly with The Chase Manhattan
Bank
Prof. Krithivasan Ramamritham: PhD,
Prof. & Head Kanwal Rekhi School of
IT (IIT Mumbai)
Finance & Project Project Mr. Nilesh Mehta: MBA
Admin Officers Originators Mr. Pravin Gandhi: Partner, Infinity
Ventures
Sushant Gupta: MBA, Entrepreneur
MOU Sameer Wagle: Orion Capital
Management
Mr. Vineet Rai, CEO: MBA, Ashoka
Mentor Orgs Fellow
Mr. P. Pradeep, Project Officer: MBA,
NGOs former Deputy Finance Manager
Other 3rd Parties Agricultural Company
Mr. Priyank Jain, Junior Associate:
MBA, B.E.
 Contact

Mr. Vineet Rai, CEO

AIMVCF
Unit 201 & 221, Atlanta Estate,
Dr. Ambedkar Chowk, Off Western Expressway,
Goregaon (E), Mumbai
INDIA – 400 063.

Phone : +91-22-5699 8955

Mobile: +91-98206 45736

Email: vineet_rai@aavishkaar.org
Website.: www.aavishkaar.org