- Impact Labs has already invested $2.5 million in over 20 startups in India focused on driving impact and achieving SDGs, with investments spanning sectors such as DEI, climate innovation, financial inclusion, and healthcare.
September 2024: India Accelerator (IA), a leading player in India’s startup ecosystem, has announced the launch of a new vertical, Impact Labs, in collaboration with United Nations Technology Innovation Labs (UNTILs). This initiative is dedicated to empowering startups focused on creating positive social impact, fostering economic change, and promoting sustainable business practices.
Renowned for its visionary approach to nurturing Indian startups, IA is now expanding its focus with an Impact-focused investment thesis. The goal is to help social innovators and entrepreneurs turn their early-stage ventures into scalable, sustainable businesses.
Impact Labs aims to provide comprehensive support and a strategic growth framework to startups targeting India’s Next Half Billion—a socio-economic demographic that represents a significant portion of the country’s population. The focus areas for innovation include Climate Action & CleanTech, Assistive Healthcare, Substitute & Alternative Materials, Agriculture, Water & Waste Management, Sustainable Ecommerce, Microfinance and Financial Inclusion, and DEI & Gender Tech.
Commenting on the launch, Munish Bhatia, Co-founder of IA and Managing Director of Impact Labs, said, “At IA, we believe that exceptional startups can drive global change. Impact Labs is designed to support solutions that are not only profitable but also have a transformative impact on society and the environment.”
Ashish Bhatia, Founder & CEO of India Accelerator, added, “IA has always been a dynamic partner for startups. With Impact Labs, we are furthering our commitment to driving social, environmental, and economic change by leveraging our expertise in community building and acceleration to help startups make a lasting impact.”
India’s social sector has seen remarkable growth in recent years, with a 15% annual increase in funding, growing from $135 billion (₹11.1 lakh crore) in 2017 to $276 billion (₹22.6 lakh crore) in 2022. The impact investing market in India is projected to reach $27.1 trillion by 2030, highlighting the increasing potential for impact-driven businesses. Impact investments have delivered competitive financial returns, with an average internal rate of return (IRR) of 10% since 2010, and equity impact investments have achieved a remarkable 30% IRR over the last decade, positively affecting over 500 million lives in the process.
Since early 2024, Impact Labs has already closed over 20 funding deals, investing $2.5 million in impact-first startups such as Optimizers (Optical Care), Giverly (Payments for Good), LivNSense (Green Value Chain), Dharaksha (Alternative Packaging), and Credit Siddhi (Financial Inclusion). Looking ahead, the accelerator plans to invest an additional $5 million in private capital and mobilize another $5 million through CSR initiatives and government partnerships in sectors like healthcare, climate action, and assistive technology.
With its strategic vision and growing investments, Impact Labs is set to play a pivotal role in strengthening India’s position as a leader in nurturing impact-driven startups and fostering a thriving innovation ecosystem.
