Investments Should Impact the Society: Chiratae's Sudhir Sethi

Today, LPs are curious to know whether money put by them is making a larger impact or not, besides making profit

Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

India is the third largest startup ecosystem in the world with about more than 50,000 startups.

A key role in the growth of the startup ecosystem is played by investors, especially the venture capital firms. Chiratae Ventures is one of them. Sudhir Sethi, co-founder, Chiratae Ventures discussed about the essentials which are required for a sustainable and a better way for investing while speaking at Entrepreneur India's Tech and Innovation Summit 2021.

"The purpose of a fund is not just to make an investment but to make an investment in the society, and to make this impact it is important that we look at society as a whole," emphasized Sethi.

Expressing his views regarding investments that were made in the last few years and their impact on the society, Sethi said a number of LPs today ask, "You are investing in these companies. What's the impact on the society?" And this very question made him realize that he never really thought about this.

"If you have funded an agritech company, then has the income of the farmer increased?" These type of questions are being asked about all other sectors in which the firm has invested such as agriculture, education, tech, environment, fintech and logistics, among others.

A realization dawned that there is a need to change the position. "That there is a pull between delivering outsize financial returns to the investors, supporting the ecosystem and measuring the impact," said Sethi.

Chiratae Ventures has invested in 100 companies and are active in about 60 of them. The annual revenue from these investments is $1.2 billion and the market cap is about $14 billion, which is about 0.5 of India's GDP. In terms of impact, Chiratae Ventures assessed that its portfolio companies have around 58 million consumers, and 37 per cent of them, i.e. around 22 million, are female. Companies that are funded by Chiratae Ventures have created 30,000 direct jobs, of which 24 per cent are female and 33 per cent are from tier II and tier III towns and 10,000 people have either been reskilled or upskilled.

Talking about the early-stage funding, he pointed out that founders usually go their friends, family or relatives and after this comes angel investors. As there is no shortage of seed funding companies in the country, one just has to find the right one whether--it is an Indian or an International fund--it is just like matchmaking, finding someone who believes in the idea and the execution.


How to Unlock Your Company's Value in the 'Circular Economy'

Michael Smith of Regeneration.VC shares how the circular economy works and why it's good for business and our planet.

BBQ Icon Rodney Scott on Blazing Your Own Path in the Restaurant Business

Interview with famed pitmaster and food entrepreneur Rodney Scott of Rodney Scott's BBQ about every day being a good day, the truth behind "overnight" celebrity, and how cooking with soul is vital to sustained success.

3 Easy Ways To Be More Motivated

Want to tackle your to-do list in just two weeks? In this video, Ben Angel tells you how.

The Founder of Mindvalley Wants to Transform and Reinvent Education. Here's Why.

The founder of Mindvalley shares why he started his platform and discusses his new book, "The 6 Phase Meditation Method."

This Teacher-Turned-Entrepreneur Started Tutoring Kids in Parks and Churches. Today, She Runs an Education Company with Nearly One Million Followers

The CEO and founder of Big City Readers talk about why she's on a mission to make reading fun for kids and their parents. Plus, what to do if you're afraid to take a leap in your career.

Melissa Villanueva of Brewpoint Coffee on Creating Avenues for Café Owners of Color

Interview with Brewpoint Coffee CEO and Founder Melissa Villanueva about balancing community and larger ambitions, creating opportunities for people of color, and equity and inclusion in business.

4 Easy Ways to Make More Money By Training Your Brain

Mental rehearsal is a powerful psychological technique that's used by athletes, billionaires, and entrepreneurs to achieve their goals.

Tim Draper: The Crypto Crusader

Governments are resistant to change, says the billionaire venture capitalist

5 Tips to Help You Go from Camera-Shy to Camera-Ready

Media trainer Jessica Abo reveals her go-to production tips so you can feel more confident for your next on-air appearance, pitch, or presentation.

Shone Tran of Chicken Meets Rice on Stepping into Food Entrepreneurship

Interview with Chicken Meets Rice co-founder Shone Tran about pulling inspiration from tragedy, taking small steps, and thriving in business with your best friend.

Try This 15-Minute Million Dollar Morning Routine To Energize Your Day

Here are six steps you can take to amplify your energy and grow your income.

This Is Why Being a Podcast Guest Can Transform Your Personal Brand

The Founder and CEO of Scout's Agency shares why a "podcast tour" is the new PR strategy for thought-leaders.

Samantha Trottier and Hernan Regiardo of Mate Society on Creating Content People Like

Interview with Mate Society founders about authentic online connections, making money in the creator economy, and choosing the right brand deals.

9 Ways To Make 'Superhuman Focus' Work For You

In this video, Ben Angel shows you how to improve your focus and do more with your time.

Discover Entrepreneur Series

Whether you need advice on how to get your business off the ground or you’re just looking for inspiration, our video series have something for everyone. Browse our library below to find a series that speaks to you and your interests.