In 2023, SNRas Systems, a social enterprise, came to Villgro, a support organisation for social enterprises, with a problem that had nothing to do with their business model. They had 19 patents in aquaculture technology, contracts with retail chains, and a clear path to scale. What they lacked was INR 50 lakh in working capital to expand to new markets. Every bank they approached said the same thing: insufficient collateral.
This is a familiar scenario for anyone working with impactful early-stage businesses in India. Social enterprises in agritech, clean energy, waste management, or sustainable materials routinely find themselves stuck because the financial system has not learned to see them yet. When it comes to the philanthropic…