National, June 17, 2025 – In a significant stride toward inclusive and sustainable development, leading impact incubator Villgro, in collaboration with 360 ONE Foundation, has successfully mobilized ₹17.9 crore in debt for early-stage social enterprises through its blended finance program, ‘Capital For Impact’. The program deploys ₹2.35 crore in philanthropic capital to unlock 7x the value in mission-aligned debt, addressing one of the most persistent challenges facing high-impact, early-stage startups—access to affordable and timely credit.
Despite their potential to drive change, social enterprises serving low-income and climate-vulnerable communities often remain stuck in the financing “missing middle”—too early for commercial lending, too mission-first for venture capital, and too large for microfinance. In fact, 70–80% of early-stage social enterprises are rejected by formal lenders, according to studies by the IFC and Intellecap.
Capital For Impact was created as a response to this critical gap. Through a blended finance model anchored in philanthropic guarantees and cash collateral, the initiative de-risks debt disbursal, enabling lenders to back ventures that were once deemed unbankable. It specifically supports enterprises in climate-resilient agriculture, rural livelihoods, and environmental innovations.
Real-World Impact, Scaled Responsibly
So far, 11 high-impact enterprises have benefited from the program. Over the next two years, the initiative aims to reach 23,000+ marginalized farmers, supporting solutions that not only enhance incomes but also promote:
- Sustainable agricultural practices
- Women’s economic participation
- Environmental resilience through reduced chemical usage
- Improved productivity and market access
Vibha Sharma Tilwalli, Lead – Impact Finance, Villgro, shared:
“Blended finance rooted in deep sectoral understanding can turn ‘unbankable’ ventures into viable borrowers. Capital For Impact has shown that mission-aligned lending is not only possible, but scalable. By protecting lenders through first-loss guarantees, we’ve enabled credit to flow into spaces where it’s most desperately needed—without compromising the mission or diluting equity.”
Saumya Lashkari, Director & Board Member, 360 ONE Foundation, added:
“Capital For Impact is transforming how the ecosystem views early-stage risk. It proves that even modest catalytic grants can mobilize substantial debt and deliver high-impact outcomes at scale. This model redefines financial inclusion and offers a powerful blueprint for responsive impact investing.”
A Scalable Blueprint for Impact-First Financing
The program taps CSR-compliant grants to back Villgro, a Department of Science & Technology (DST)-recognized incubator, and integrates technical assistance and mentoring to ensure borrower readiness. In partnership with impact-aligned lenders like NABKISAN, Caspian, and FWWB, loans are disbursed without traditional collateral, at affordable rates, and structured for long-term sustainability.
By embedding sectoral expertise and financial innovation, Capital For Impact is rewriting the rules of early-stage financing—offering mission-driven enterprises the space to thrive, scale, and deliver meaningful impact where it matters most.
