Mumbai,  09  February – On the occasion of International women’s Day,  International Finance Corporation (IFC) and Intellecap, launched the report, “Opportunities and Constraints of Women Owned Very Small Enterprises in India” .

This report presents a post COVID, cluster-based landscape of Women’s Very Small Enterprises (WVSEs) in India and quantifies the untapped credit opportunity. It builds the case for financial institutions to design targeted products for this segment and provides recommendations on how these can be deployed.

Women-owned very small businesses (WVSEs) in India, with an estimated credit demand worth INR 836 billion ($11.4 billion), need the strong support of financial institutions (FIs), as per the latest report from International Finance Corporation (IFC) and Intellecap, “Opportunities and Constraints of Women Owned Very Small Enterprises in India” enabled by Intellecap. This support will facilitate their growth and drive socio-economic  inclusion by eliminating existing challenges.

Launched on the occasion of International Women’s Day, the report says WVSEs face numerous challenges, including inadequate access to capital, technology and information, and infrastructure gaps. There are about 15 million women-owned MSMEs in India, and contrary to popular perception, over 70 percent of them are manufacturing enterprises, many of them home-based.

In addition to challenges mentioned, the segment of women entrepreneurs who often overcome biases from within the family and the business community, witness fractional treatment when it comes to lending. The report says FIs have traditionally catered to men-owned enterprises. The approach then limits the understanding of the operating contexts of women-owned businesses and their socio-cultural constraints. Given that most women entrepreneurs are self-financed, the lockdowns imposed during the COVID-19 pandemic have impacted their business and reduced their income.

“The COVID-19 pandemic exacerbated existing inequalities faced by India’s women entrepreneurs. This report explores how to unlock a $11.4 billion financing gap for WVSEs and charts a roadmap for financial institutions to better serve this segment in a post-COVID world,” said Wendy Werner, India Country Head at IFC. “IFC and its partners remain committed to creating an enabling entrepreneurial ecosystem so women-owned businesses can reach their full potential and contribute to India’s economic growth story,” she added.

This report identifies sectors that WVSEs operate in and highlights the characteristics of these enterprises. It also provides a granular perspective of WVSE business operations in each of the sectors including the nature of businesses they engage with and the intermediaries who provide support to them. On this basis, the report suggests ways for FIs to design new products and new processes to address the needs of WVSEs.

 Amar Gokhale, Associate Vice President, Livelihoods & Gender at Intellecap said, “The underlying objective of this report, especially on International Women’s Day, is to showcase that this segment of

 Read more about the Report launch across mainstream media –

Financial Express I CNBC I The Times of India I Business Standard I VC Circle I

To download the Publication- Click here  

Mumbai,  28^th  January –  Our Food, a Hyderabad based AgriTech startup with innovative, low-cost, and decentralized mini food processing units, has raised USD$ 6M (around INR-45-Crore ) in growth funding.  The company plans to ramp up operations, increase manufacturing capacity and vastly improve the agricultural food supply chain that sees an estimated $5B annual post-harvest wastage in India. This funding round is led by existing investor, 3Lines Venture Capital, and a new investor, C4D Asia Fund. Lalit Jalan, 3Lines India Chairman and ex-CEO of Reliance Infrastructure, will join the company’s Board of Directors. Intellecap served as the exclusive advisor for this transaction.

Over 1,700 rural entrepreneurs have licensed Our Food Farmer Franchises, each operating a regional crop-specific processing unit that procures and processes raw material from over a hundred farmers from nearby villages. Each Farmer Franchisee is powered with an end-to-end tech-enabled solution, starting with the establishment of a single mini food processing unit, access to equipment financing, training in processing, and marketing of the processed output. Our Food has a presence in 13 states in India, primarily concentrating in Andhra Pradesh, Telangana, Maharashtra, Madhya Pradesh, Rajasthan, and Karnataka. The company has processing units for over 15 crops, including pulses, cereals, spices, groundnut, and plans to expand its crop portfolio.

 “Majority of the value gained from pre-processing, reducing post-harvest wastage and supply chain disintermediation is shared between the franchise operator and the farmer that supplies the unprocessed harvest. To bring food processing closer to the farm is the mission Our Food team has worked tirelessly over the past five years and has fine-tuned the business model to develop innovative ideas in manufacturing, food processing operations, financing, and B2B/B2C sales”, said Bala Reddy, the Founder and CEO of Our Food. “This capital infusion will help us boost our capacity to over 6,000 operational franchises, gives us the right ammunition to significantly disrupt the food processing industry and position us for an IPO in 2024”, Bala Reddy added.

 “Our Food value proposition is a triple play for the rural youth who operate franchises, for farmers who can increase their income through direct supply, and for the business buyers who can offer higher quality to their consumers”, said Lalit Jalan,<designation>, Our Food Pvt Ltd . “Our Food has seen a growth of over 100x in its decentralized processing over the last two years signaling a disruptive trend in Mini Food Processing”, Lalit further added.

 “Our Food is the first successful model in India that has been able to scale decentralized processing of agricultural products. In-house design and manufacturing of the processing units, coupled with financing and buyback guarantee of the produce, has set up Our Food to become a pan India company in no time”, said Arvind Agarwal, CEO, C4D Partners. “Decentralized agri-processing is the key to achieving the objective of doubling of farmers income in India”, Arvind further added.

To read the coverage in Your Story – Click Here

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SaaS startup Darwinbox enters the unicorn club
SaaS startup Darwinbox has become the fourth unicorn of 2022 after raising $72 million led by TCV at a valuation of over $1 billion.

TCV has previously invested in Netflix, Meta, Spotify and Airbnb among others.
Existing investors include Salesforce Ventures, Sequoia India, Lightspeed India, Endiya Partners, 3One4Capital, JGDEV and SCB 10X. After this round, the total investment raised by the company so far has gone over $110 million (approximately Rs 820 crore).

The new funding will be used for Darwinbox’s global expansion plan by allowing the company to accelerate its platform innovation agenda, strengthen its product, engineering, and customer success teams along with scaling its go-to-market presence in South Asia, SEA, and MENA. The company is expecting the overall team to grow by 100 percent and is also setting up to launch in the US in 2022.
Darwinbox, founded in 2015, works in the HR-tech space, digitising functions such as attendance, payroll and employee onboarding. It supports over 650 global enterprises across 90 countries manage HR operations from employee recruitment and attendance to engagement. Darwinbox’s customers include conglomerates such as Adani, Vedanta and JSW as well as newer internet companies such as Cars24, Vedantu and CRED.

Mumbai,  24^th  January – Listen to the latest episode of the Quint podcast ‘Land of a Billion’ which sheds light on the various challenges that deny women farmers access to land rights.

In this podcast, “Why Do Women Farmers Still Lack Access to Agricultural Land Ownership”  Shipra Deo, Director of Women’s Land Rights at Landesa India and Pranab Ranjan Choudhury, Researcher and Founder, Center for Land Governance, Associate Director, Intellecap , talks about the various challenges that deny women farmers access to land rights and the hurdles they face in being recognised as farmers. 

The 2011 census suggests that four out of five women workers in rural India work in agriculture as owner-cultivators or wage workers.

However, women farmers continue to be disadvantaged when it comes to access to agricultural land ownership, compared to men. This often denies them their rightful recognition as farmers which, in turn, inhibits them from accessing the welfare benefits that are entitled to farmers.

Lack of reliable data and poor policy framework are some of the key factors contributing to the disempowerment of women farmers.

About the Podcast

 ‘Land of a Billion’ brings you expert conversations about the most contentious of the holy roti-kapda-makaan trinity – the makaan over our heads – and the larger ecosystem that governs it.

From administrative tussles to understanding the conflicts on ground, catch these episodes every alternate Friday for a rundown on the latest charcha around land and property rights in India. In case you missed it, you can also catch up on Season 1 of this series here.

Hosted by Bhargavi Zaveri, a researcher interested in land and access to finance, Land of a Billion is a fortnightly podcast series produced in association with the Property Rights Research Consortium.

About the Guests

Shipra Deo leads Landesa’s work for gender-equal and inclusive land governance in India. She is passionate about the gender dimension of social development and specialises in designing and implementing gender-responsive strategies and programmes, including those related to land. In recent years she has done intensive research on inheritance by women and gendered aspects of land laws.

Pranab is a researcher and consultant on natural resources management and governance, with more than 25 years of experience. First, as a land use scientist with the Indian Council of Agriculture Research and, later, as an independent practitioner, he has worked with governments, donors, NGOs, and communities across South Asia, across landscapes, uses, and tenures. He also founded the Center for Land Governance in 2015. He presently works as an Associate Director with Intellecap.

Mumbai,  13 January – Read the article, ‘Towards Gender-Inclusive Investing: A Co-Design Approach’ Co-Authored by Amar Gokhale, AVP, Intellecap with Jona Repishti, Social Entrepreneur Manager, MIT D-Lab and  Saida Benhayoune, Programme Director, MIT D-Lab.

This article is the first of a 2-part series that captures learnings from a ‘co-design’ exercise conducted with investors in India to help the move from intention to action on gender-inclusive investing. The co-design exercise comprised of five 3-hour sessions conducted virtually in October 2021.

Gender Inclusive Investing, or Gender Lens Investing (GLI), is an approach to investing into companies, organizations, and funds that takes into consideration gender-based factors across the investment process to advance gender equality and better inform investment decisions.^[1] Many of the funds deploying capital with a gender lens — approximately 65% of them — are newly established first-time funds (Project Sage 4.0). To close the gender financing gap, we need to bring larger pools of money, more quickly into this space. Activating well-established, mainstream investors to integrate gender into their work holds an opportunity to accelerate impact.

Could co-design — a method of bringing together users and stakeholders to generate more equitable solutions — play a role in building the field?

Inspired by MIT D-Lab’s 15-year track record in organizing design summits around the world and a small grant from Aspen Network Development Entrepreneurs (ANDE), the authors of this article went on a listening tour. We interviewed 20 impact investors and 12 ecosystem actors in India looking to learn: What incentivizes fund managers to build gender equity in their work? And also, could we leverage collaborative methods to help them unpack the challenges they face in the very early stages of their gender lens adoption journey?

Bridging the chasm between intentionality and action

We discovered multiple investors in India that were actively experimenting and trying to customize strategies for becoming more gender-inclusive. Despite growing demand, progress was slow. The reason? Creating a gender lens strategy and then leading internal reform can be time-intensive, expensive, and complex. Even the most well-intentioned and well-connected gender-pioneers struggled to bridge the chasm between intentionality and action.

Additionally for new entrants in the gender-inclusive investing space, there is a paucity of Indian role models and actionable guides to draw from. Between the DIY option of using case studies and reports, and the pay-for-support option of working closely with technical assistance providers, there is not much to draw from if neither option worked for you.

D-Lab realized that there was a unique window to use co-design to deliver value to fund managers looking for learning opportunities, actionable toolkits, and peer networks.

We teamed up with Intellecap^[2], a catalytic ecosystem player in India, and organized the Co-design Sprint: Towards gender inclusive investment practices in October 2021. We invited six impact investors: Aavishkaar Capital, UC Impact, Acumen, Villgro, Omidyar India, and Accion Venture Lab, to join us. All six investors were in the process of exploring how to develop more inclusive gender investing practices, and we spotted an exciting opportunity to open up their process to participatory design frameworks and creative collaboration.

Accelerating GLI innovation and equity with co-design

Bringing co-design – the collaborative and creative process of convening a diverse set of actors to unpack complex challenges and ideate together – into the GLI space is quite new. Since GLI work at the fund level has multiple entry points, we focused on three themes: how to improve sourcing, due diligence, and gender data practices. Co-design offers a unique set of advantages for unpacking these challenges:

Inclusive: Co-design brings in diverse voices and perspectives fostering a deeper understanding of the barriers, richer ideation, and more suitable solutions.

Agile: Sprints hinge on a disciplined, facilitated, experiential process that is suited for breaking down complex problems into manageable and addressable challenges, encouraging quick experimentation and iteration to shorten the learning curve towards concrete outcomes.

Collaborative: In addition to solutions, co-design helps build relationships, incorporate different perspectives, and allows for cross-pollination of ideas – all with a focus on building understanding, fostering adoption, and community buy-in along the way.

The Co-design Sprint experience

Over the course of 5 sessions, our co-design summit welcomed 100+ participants – gender lens practitioners, entrepreneurs, investors, and thought leaders – from around the world to support our investors in the design and development of solutions. The workshop series validated that co-design delivers unique benefits to investors that are new to the GLI space:

Seeing the forest and the trees. Most of the challenges to GLI adoption stem from the difficulty of grappling with deeply rooted societal norms, unconscious biases, and long-established industry practices. Our co-design sessions focused on building mindsets for empathy, bias awareness, creativity, optimism, and openness as prerequisites to exploring challenging themes around power dynamics, privilege, and implicit biases. A participating investor noted “[because of] this workshop, I got a very different perspective on GLI and I realized how many conscious and unconscious biases are embedded in investing practices that I wasn’t aware of…” By inviting cross-pollination of different perspectives and a beginners’ mindset, co-design can offer a holistic yet disciplined approach to help fund managers detect and manage blind spots – both internal and external to the funds – in a progressive and systemic fashion.

Finding the needle in the haystack. It is not always easy to know where to start and where to focus reform efforts when you have never done such work before. The challenges and barriers that GLI advocates uncover are complex, interwoven, and systemic. This explains the analysis paralysis that many fund managers face in moving from intention to action. By emphasizing problem framing over solution ideation, co-design can help investors visualize what to prioritize first (among many possible points of entry) and discover different pathways for intervention. One investor noted: “When we started the whole exercise, the ideas were very jumbled; and now when I am seeing everything in a structured manner, it makes it easier to pick where to focus on first.”

It will take a village. After the co-design sprint, one investor noted: “My biggest takeaway is that there are many others in the ecosystem dealing with similar questions on gender and that we can get a lot more done from working with each other.” Whether it is by pooling gender performance data to build a stronger business case for GLI to LPs, co-developing industry standards for gendered due diligence processes, or collaborating on building pipelines of female-led and gender forward businesses, impact investors realized that they could reap additional benefits from taking a collaborative approach to GLI. By continuing to position forward-thinking fund managers within networks of like-minded peers and ecosystem actors, we can maximize the returns on their individual efforts and accelerate the pace of GLI adoption.

The way forward

Sometimes, co-design feels like a big upfront investment in terms of planning, coordination, and time commitment, but time and time again, we have seen that it pays unique dividends to those that engage in it. Co-design sprints may be less suitable for delivering ready-to-implement gender lens solutions, but they can serve as enriching and generative exercises that build a strong foundation for catalyzing change at both the fund and the ecosystem level.

To move the needle on GLI we should continue to leverage inclusive, disciplined co-design methods that bring industry champions together to build confidence, gain new insights, and build relationships for addressing some of the most complex challenges.

[1] As defined by the Gender Lens Investing Initiative, GIIN (Global Impact Investing Network)

Mumbai, 16th December– In yet another significant milestone Circular Apparel Innovation Factory got an extensive coverage on a detailed and in-depth story around Circular Economy and India by ET Prime .

The detailed article quotes Circular Apparel Innovation Factory with insights and perspectives from Venkat Kotamaraju, Director, CAIF and also features their Partners and Collaborators with inputs from Dr. Rachna Arora, Team Leader, GIZ, Marine Litter & EU-REI among other experts and industry leaders.

Synopsis : For a country where reusing and sharing of products isn’t new, India has been unable to streamline or organise the unstructured secondhand market. Such a move will have environmental and economic advantages that can help multiple industries.

In 2007, Rohan Gupta, then a techie with SAP Labs in Bengaluru, decided to upgrade his laptop to one that can keep up with his hectic work requirements. But he didn’t know how to discard the used one in a data-secure and environment-friendly way. So, he called his older brother Nitin, who was doing an MBA from the Stern School of Business in New York, for help.

After some basic research, the brothers were disappointed to find that India had no electronic waste recycler. This led them to set up Attero Recycling in 2008.

Today, the Noida-based Attero collects and safely disposes of e-waste from over 1,400 cities in India. It has tied up with electronics manufacturers such as Samsung and LG and automobile manufacturers such as Hyundai and Maruti Suzuki to process used devices and parts — either to recycle or dispose of these safely. It wouldn’t be imprudent to call Attero one of the pioneers in formalising the circular economy in India.

Circular economy involves reusing, recycling, repairing, refurbishing and sharing of products. It encourages reusing or recycling a product instead of throwing it away and causing pollution and triggering climate change events. This practice has become a necessity in today’s world. A 2018 FICCI-Accenture report said, “Given the current resource constraints, business-as-usual is not sustainable and there is a need to decouple growth from resource requirements.”

Apart from mitigating environmental problems, the circular economy can also give the country’s economy a boost. The report said that $0.5 trillion ($500 billion) worth of economic value can be unlocked through circular economy business models in India — and $4.5 trillion globally — by 2030. For example, reusing and recycling will help India get access to good-quality raw materials that the domestic industry can use, reducing the dependence on imports.

Potential in Sectors

Giving a glimpse into the potential economic benefits of a circular economy, the study says India can generate $1 billion worth of gold from e-waste. In plastics recycling, it can create 14 lakh jobs and present a $2 billion economic opportunity. Steel recovery from end-of-life vehicles can give 8 million tonnes of steel in 2025, representing a $2.7 billion opportunity.

For Attero Recycling, all this translates to good business potential and also becoming an earth[1]friendly company. The company claims to extract pure gold, silver, copper, iron, aluminium and others, and putting these back into the market for reuse. “More than 90% of the quantity is extracted from Li-ion batteries, and more than 99% from e-waste. Which means that from one gram of gold used in a product, we extract more than 0.99 gm of gold,” Gupta says.

Textiles — a segment where the country is a leading global player — can gain a lot by embracing a circular economy. A research by Water Footprint Network showed it takes 22,500 litres of water to produce 1kg of cotton in India; the global average is 10,000 litres. The fashion industry produces 10% of all humanity’s carbon emissions and is the second-largest consumer of the world’s water supply, according to the World Economic Forum. No one is going to stop buying clothes, and most of the discarded clothes end up in landfills. This makes textiles a prime candidate for a circular economy.

There is increasing awareness and a gradual rise in the interest of apparel waste recycling by fashion and lifestyle brands, experts claim. However, sustainability can be challenging, as the sector has several unstructured and informal players. In India, firms and organisations such as the Circular Apparel Innovation Factory (CAIF), Apparel Export Promotion Council and Canvaloop have been working with MSMEs, suppliers, manufacturers and other stakeholders to help them transition towards a circular economy

CAIF — which has tied up with some big apparel players — is focussing on decarbonising the industry and getting to zero-leakage of textiles waste. Venkat Kotamaraju, Director of CAIF, says they are trying to build circular textile waste management models that focus on building skills and capacities among waste collectors. The project is expected to create over 5,000 green jobs, while saving at least 20 million kg of textile waste from ending up in landfills by 2026. While waste collection already happens in textiles, he says they want to create and train a team of informal and underserved waste workers to responsibly collect and segregate waste. The whole aim is to make use of the waste as an input in the upcycling ecosystem.

Surat-based firm Canvaloop is also on a similar mission. It develops fibres by using agro waste and plant materials such as hemp. Canvaloop, founded in 2017 by Shreyas Kokra, claims its fibres require minimal water and have no pesticides or insecticides. It also claims to process around 30 tonnes of agricultural waste every month.

Ship recycling is another segment with immense potential. Maersk, for example, has an initiative in Alang — the world’s biggest ship breaking yard — to collaborate with shipowners and other stakeholders to explore opportunities and incentivise a circular economy. Prashant Widge, Head of Responsible Ship Recycling at Maersk, explains that India has about a third of the global ship recycling market. “About 80% of a ship is steel and 20% is equipment, machinery, the engine, spare parts, etc. A large chunk of the steel is melted and turned into ingots and steel rods, which are then used in domestic construction. This is marine-grade steel. Even after being in the sea for 20 years, it is still strong enough to be reused,” he says. Materials from the rest 20% of the ship are also refurbished and reused. Widge says they use skilled workers to remove hazardous materials and transport these to a downstream waste management facility.

MSME Centric

A circular economy cannot be functional without the participation of India’s 60 million MSMEs and ancillary units. The model is meant for small businesses and MSMEs, claims Manoj Kumar, founder, Social Alpha, an incubator for social entrepreneurs. While large businesses and corporations only drive linear businesses, there are endless opportunities and employment potential among small businesses for circular business.

The challenge is getting them all on a platform to share knowledge and resources. That is what German development agency GIZ is trying to address, in association with the European Union’s Resource Efficiency Initiative (India) EU-REI. Rachana Arora, the leader of the team at GIZ that is involved in the initiative, says, “Small businesses are usually struggling with compliance issues, bureaucracy, etc. But if they actually get a platform where they can actually innovate, create products that are much more efficient, then there is an appetite for this.”

GIZ already works with the Automotive Component Manufacturers Association (ACMA) — which has a lot of SME suppliers in smaller cities — to share the tools for cleaner production practices. A global inclination to reuse and recycle is pushing the auto sector SMEs towards a circular economy. Arora says ACMA came to them and said global auto companies were asking vendors and suppliers about their supply chain and manufacturing practices. “What are the kinds of primary or secondary materials they are consuming? How do they validate their supply chain? There are also questions regarding the greenhouse gases’ mitigation potential. ACMA is working with us on that part, because they would like their SME or suppliers to adopt these practices,” she says.

Even apparel brands, says CAIF Director Kotamaraju, are helping their supply chain partners by giving them access to low-carbon technologies. This way, suppliers avoid the huge cost in acquiring the know-how and there can be a significant reduction in carbon emissions, too. It also makes them a preferred supplier of European brands.

Thriving Informal Market

India has an inherent advantage when it comes to implementing a circular economy. Reusing and sharing of products and a frugal culture are not alien to us. There are several thriving secondhand markets across the country selling reused and refurbished products, from electronics to clothes. Some of these unstructured markets are actually doing very well, says Arora, pointing to Delhi’s Mayapuri as an example. “You can see people coming from across the country to buy a particular part for an old vehicle.”

However, a structured circular economy cannot take root and thrive in the country unless we address some issues. Companies may say they will use a percentage of scrap in production, but that is easier said than done, says Arora. “A lot of industries would like to just go and collect

used materials in the wake of policies like the scrappage policy. But they will require trained manpower to handle those equipments. We need to look at those processes.”

SMEs have to learn to address the occupational health risk before a circular economy can take root. This is because in a passenger vehicle, for example, 75-80% of material can be recovered, but 15-20% of it is toxic that has to be handled in a specialised way.

Attero’s Gupta says the internationally accepted Extended Producer Responsibility (EPR) regulation ensures that companies manufacturing and selling products are made responsible for collecting end-of-life waste and making sure it is recycled right. Prior to this and even right now, he claims, a large portion of electronic waste is recycled in the informal sector using hazardous and non-scientific processes. “The average lifespan of people working in the processing of unscientific ways of electronic waste is less than 27 years. Typically, they’re women and children. They’re exposed to cyanide, sulfuric acid fumes, lead fumes…”

But the code has its loopholes. “EPR was passed as a regulation in 2013, but there were no targets fixed. So even if, let’s say, Apple collected one cell phone back, they were compliant. If they collected 100,000 cell phones, they were compliant,” he adds. In India, EPR was made mandatory and targets were rolled out in 2018.

CAIF’s Kotamaraju points out that there is no EPR policy for textiles, though it is the second largest employer and the third most polluting industry in the world. “We need a very considered and well-articulated policy around EPR for textiles.” The lack of policy framing and advocacy is the biggest obstacle in faster adoption of the circular economy, says CAIF’s Kotamaraju.

Kokra says there are infrastructural challenges as well. These can only be solved at an institutional level and not at an individual or a company level. “You cannot go to a farmer and say do like this and give him a contract. You have to be with them.”

People Matters

CAIF is in conversation with industry stakeholders to create visibility on how waste is flowing across the ecosystem. Kotamaraju says it is important to look at how these transitions will affect people.

In Alang, the focus is more on health hazards as ships have a lot of toxic material. Maersk’s Widge explains the company had to take many initiatives including creating a standard framework around ship recycling. While the company has a downstream waste management facility, not all hazardous materials on a ship can be handled at the facility. There are gaps and lapses that need to be fixed. “But having said that, I also know that the Gujarat maritime board and the Indian Red Cross are working on a hospital. I also know that the pollution control board is working on trying to fix these findings. So, there’s work in progress in this regard from the Indian authorities, which is encouraging,” he adds.

Apart from the focus on reuse and recycle, it is time to take the circular economy up by a notch. Developing non-toxic materials such as biodegradable plastic and recyclable textiles has to be a priority.

We don’t live in an idealistic world, so we have to ensure things are balanced well. Fast fashion, for example, is not going to go away, says Canvaloop’s Kokra. “People will always want to buy new things. What we can do is make it more sustainable, more circular. We can sell the same piece of clothing three times by recycling it, by making it biodegradable, by getting into secondhand fashion.”

In short, it is time that all industries become greener if we all want a rosier future.

Bangalore and Kolkata,  22^ND Nov– Intellecap’s Investment Banking Group is thrilled to announce a landmark M&A deal in the e-pharmacy space.  This is the second transaction in the  healthcare space in recent times.

Intellecap IBG acted as the exclusive sell-side advisor to Sasta Sundar Health buddy Limited in its majority divestment & joint venture with the Flipkart Group.

SastaSundar.com offers a digital healthcare and pharmacy platform supported by a network of more than 490 pharmacies, and aims to address the issues of access to affordable and quality healthcare in India by providing original products from authorized sources and delivering them across the country.

The launch of Flipkart Health+ & the majority stake in Sasta Sundar Marketplace Limited will enable the focus on providing consumers access to affordable & convenient healthcare across pan India.

ICap’ IBG equity team worked with Sastasundar group from ideation stage to finding global partner in the most exciting e-pharmacy and internet backed healthcare services space in India.

In the pic Intellecap IBG MD Pramod Kasat with Leaders from Flipkart and Sastasundar

Walmart-owned Flipkart on Friday said it will acquire majority stake in Kolkata-based Sastasundar Marketplace that owns and operates online pharmacy and digital healthcare platform, SastaSundar.com.

While the deal size was not disclosed, Flipkart said it is foraying into the healthcare sector through the launch of Flipkart Health+. ”As part of this development, the group has signed definitive agreements to acquire a majority share in Sastasundar Marketplace which owns and operates SastaSundar.com, an online pharmacy and digital healthcare platform, as it focuses on providing consumers access to affordable and convenient healthcare,” a statement said.

SastaSundar.com offers a digital healthcare and pharmacy platform supported by a network of more than 490 pharmacies. The company is backed by investors from Japan, namely Mitsubishi Corporation and Rohto Pharmaceuticals.

Flipkart Health+ will leverage the combined strengths of the Flipkart Group, which includes its pan-India reach and technology capabilities, with SastaSundar’s deep expertise to provide consumers end-to-end offerings in the health-tech ecosystem, it added.

Flipkart Health+ will endeavour to give millions of Indian consumers access to quality and affordable healthcare, starting with e-pharmacy and will add new healthcare services such as e-diagnostics and e-consultation over time, the statement said.

Flipkart Health+ will report to Ajay Veer Yadav, Senior Vice President, it added.

The consumer internet ecosystem in India is growing rapidly as consumers recognise the opportunities and convenience that digital adoption is enabling in their lives, Flipkart Senior Vice President and Head – Corporate Development Ravi Iyer said.

He added that with growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable healthcare and ancillary offerings. ”We are excited to enter this space through this investment in SastaSundar.com, a company that has established itself as a trusted partner for lakhs of consumers through genuine products, a technology-powered platform and a wide network.

“The synergies between the Flipkart Group and SatsaSundar.com, combined with our commitment to prioritize our customer’s needs, will help us grow and transform online healthcare in India,” Iyer said. SastaSundar was founded in 2013 by B L Mittal and Ravi Kant Sharma.

In a regulatory filing on the BSE, Sastasundar Ventures Ltd said Sastasundar Healthbuddy Ltd (SHBL) has entered into a share subscription and purchase agreement and a shareholders’ agreement on Friday with Flipkart Health Pvt Ltd, pursuant to SHBL’s divestment of its equity holding in Sastasundar Marketplace, a wholly owned subsidiary of SHBL.

SML is a step-down subsidiary of Sastasundar Ventures Ltd and post the transaction, it will cease to be a step-down subsidiary of the company.

The filing noted that the company will not be receiving any consideration sale/disposal in relation to the proposed transaction under the agreements.

”The total consideration defined in the Definitive Agreements will be received by subsidiary and step-down subsidiary of the company upon completion of the proposed transaction. The total consideration will not be less than the fair market value determined based on the report by the registered valuer,” it added.

As per the filing, SML’s standalone turnover was Rs 2.58 crore for the financial year ended March 31, 2021, while its net worth was Rs 4.17 crore.

“At SastaSundar.com, we are focused on developing innovative ways to provide access to affordable healthcare easily and conveniently, building a trusted network for authentic medicines, diagnostics and wellness,” SHBL founder and Chairman BL Mittal said.

Through this partnership with Flipkart, the company sees an opportunity to further grow and reach a larger consumer base, using complementary technologies and logistics infrastructure, he added. “This partnership with Flipkart is a strong validation of the capabilities we have built and will accelerate SastaSundar’s mission to provide affordable healthcare to all Indians in a convenient manner,” SHBL founder and CEO Ravi Kant Sharma said.

To read the coverage from Mint – Click Here

To read the coverage from Tech Crunch – Click Here

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Mumbai, 5th November– Recently Circular Apparel Innovation Factory got an extensive 3 page coverage titled, ‘The Textile & Apparel sector looks to build capabilities to drive the transition to a circular economy’ by Assistant Edito Arbind Gupta, Assistant Editor, Business India, for their Special Edition, November Issue.

This is now available both Online and on Print.

The textile and apparel (T&A) manufacturing is considered to be one of the most polluting industries. In fact, the T&A industry is the second most polluter globally. Over 20 per cent of industrial water pollution occurs due to garment manufacturing. Globally, 80 per cent of textile waste generated is not recycled and often sent to landfills or incinerated. In fact, the industry is responsible for polluting over 8 per cent of global climate. With growing economy and changing demographics, the consumption of textiles and clothing has gone up by more than 60 per cent today as compared to that in 2000 and this has significantly aggravated the whole situation. In the past 15 years, the textiles production has almost doubled.

Amidst all this, the industry is finding itself in a quandary as it is struggling to balance between its mainstream targets of productivity & production and the sustainability goals. The current linear system of production, distribution and usage of T&A is not sustainable as there is less regard for environment impact. Experts are of the view that the current `take-make-dispose’ approach does not only adversely impact the environment and society, but also the future business of the T&A industry.

While there are a few sporadic interventions across the value chain happening in order to address the issues and making the value chain more sustainable, the concerted effort is missing. In order to deal with these issues in a more holistic manner as also set the goals and achieve them in a time-bound manner, an industry-led platform – Circular Apparel Innovation Factory (CAIF) – has been put in place recently in India. Started in 2018 and formally launched in November 2019 at Sankalp Forum’s 11th Global Forum in Mumbai, CAIF is a global initiative of Intellecap, the impact advisory arm of the leading impact investing organisation, the Mumbai-headquartered Aavishkaar Group, which works to build businesses that can benefit the underserved segments across Asia and Africa. Intellecap builds enabling ecosystems and channel capital to create and nurture a sustainable and equitable society.

CAIF is supported by the DOEN Foundation, a Dutch foundation supporting initiatives in the field of culture and cohesion and in the field of green and inclusive economy, as also Aditya Birla Fashion & Retail Ltd (ABFRL) as its founding anchor partners. To accelerate the shift of the industry from its current ‘take-make-dispose’ approach to one that is more circular across the lifecycle, CAIF works with a diverse group of stakeholders from across the value chain.

Circular goals

“As an industry-led platform, CAIF’s mission is to build the ecosystem and strengthen capabilities to drive the transition to a circular economy in the apparel and textile industry. The platform is building the textile industry’s innovation infrastructure by bringing together key stakeholders to collaborate and work together on achieving the five key circular goals: increasing the use of sustainable inputs and material; maximising the utilisation of clothing & textiles; increasing the recycling of clothing; boosting production through renewable inputs; and minimising negative social impacts and increasing social responsibility,” says Venkat Kotamaraju, director, CAIF.

“We are pleased to partner with Intellecap to accelerate sustainable fashion concept through CAIF and build an industry level platform for a circular textile ecosystem. We intend to bring forth ideas and innovations to add more strength to our pioneering work around sustainability. The association with Intellecap will help us create, collaborate and mainstream the conversation around circular economy and sustainable fashion,” states Ashish Dikshit, managing director, Aditya Birla Fashion and Retail Ltd.

The industry lacks an infrastructure to deal with textile waste

The industry-led body has over the years, partnered with a host of like-minded organisations with whom it is building a body of work spanning the ecosystem. For example helping identify the key circularity levers and mapping them against policy interventions that needed design (a policy-led programme in partnership with Centre for Responsible Business) and building a body of evidence on how designing for inclusion into circular business models can help deliver both ecological and social outcomes (a collaboration with Netherlands-based The Laudes Foundation).

Over the last three years, CAIF has been actively working with over 15 Indian and global brands through different pilots and initiatives, and has identified and mapped over 400 innovators across different dimensions of circular economy relevant to the textile and fashion industry. CAIF aims to have 50 to 60 partners in India and globally in the next 2-3 years and expand its presence beyond India and Bangladesh to others parts of the world especially global south economies like South Asia, like Sri Lanka and Nepal; East African countries like Kenya, Tanzania and Ethiopia and South East Asian countries like Indonesia and Vietnam.

The T&A platform is targeting these regions because they are critical from the global value chain in the fashion industry. They are critical since global south accounts for a significant amount of manufacturing for the global value chain of the global industry. For example, India is one of the biggest importers of textile waste from the US and the Europe. The country recycles it and sends it back. Besides, more than 50 per cent consumption of fashion and apparel is in global south. Global South is economies outside the developed economies like the US and the Europe.

“With the global south economies being significant contributors to sourcing, manufacturing, exports, recycling and consumption, in the complex global value chain, it was crucial for the global south to have a voice and a seat at the table. While there was growing momentum globally (especially in Europe) from individual organisations, we saw an opportunity in taking an ecosystem approach that will not just surface the dots (gaps and stalemates) but also help connect the dots (mobilising capital, knowledge and networks to build the ecosystem) in interesting ways for impact to happen at scale. More importantly, while the dominant narrative globally around circular economy emphasises economic and ecological value creation, CAIF aims to alter this narrative that also includes how we ensure no individual or group is left behind on this path towards progress,” explains Kotamaraju.

Kotamaraju: building the ecosystem

CAIF is looking to make the work of the apparel, textile and the fashion industry more sustainable (resource efficient, resilient and responsible) through reducing carbon emissions (both avoidance and removal), while creating green and circular jobs for those employed across the value chain. Some of the partner brands and manufacturers have very clear and ambitious targets like for e.g. moving to recycled water usage (away from fresh water) by 70-100 per cent between 2025 and 2030, eliminating energy usage and consumption by 30-50 per cent by 2030, replacing virgin material usage with recycled material use by 50-70 per cent by 2030 etc.

World changing companies

In the last three months, the industry platform has created a showcase of circular innovations and sustainable innovations to at least 60 suppliers of the top 3 brands and manufacturers. In fact, it has recently entered into partnership with IKEA Foundation along with Enviu (the Netherlands-based social organisation that together with partners, builds world-changing companies that address social and environmental issues) to support innovative interventions that are designed to not just deliver on environmental outcomes but also help create green livelihoods. Through this partnership, CAIF is looking to build a circular textile waste management model in the next five years. The IKEA Foundation is funding the initial and seeding phase of the five-year project, which will be implemented as a joint initiative of Enviu and CAIF.

In the next five years, the programme aims to deliver on clear outcomes, one, on environmental outcomes, it is looking to divert 20 million kg of textile waste away from the landfill and help recycle them and find its way back into the value chain. By recycling it and reclaiming value from the textile waste, the project is reducing the dependence on natural resources by replacing some amount of virgin material with recycled materials. Through this programme, CAIF is looking to create at least 5,000 new green jobs for base workers. In the first phase of this ambitious programme, Enviu and CAIF will be seeking partnerships with manufacturers, brands and innovators to scale and replicate solutions to manage textiles waste; as well as NGOs and other civil society actors to build skills and capacities amongst the waste workers in India.

Creating better livelihoods

“The IKEA Foundation has always worked towards supporting people living in underserved communities to afford a better life. There is huge potential in the textile waste sector not only to become more sustainable but also to create better livelihoods for a large number of people at the bottom of the pyramid. We believe that green and circular entrepreneurship in India’s textile waste sector offers an opportunity for vulnerable workers to lift themselves out of poverty while protecting the planet. That’s why we are happy to be part of this initiative,” says Vivek Singh, Head of Portfolio – Employment and Entrepreneurship, IKEA Foundation.

Avers Ankie Van Wersch, CEO, Enviu, “We believe building impact-driven companies that prove and showcase it is possible is key to achieving a new normal: a textile industry that serves people and planet. Enviu’s top-down impact-driven venture building approach, combined with CAIF’s bottom-up ecosystem building amongst waste workers is a winning combination, maximizing impact. We look at the obstacles to change in the textile industry and fill in the gaps with new ventures, while CAIF starts from the capabilities of the waste workers. The ventures we build create income for the waste workers. I have seen the impact our circular ventures create on families first-hand.”

Textile and apparel manufacturing is considered second most polluter globally

It may be noted that India is one of the world’s largest textile producers and importers of used clothing, but lacks an infrastructure to deal with textile waste, leaving an estimated 4 million informal waste workers trapped in low-income, unreliable jobs. Enviu and CAIF, together, will build capacities and skills amongst these waste workers, and build successful circular enterprises to reclaim value from textile waste. This will reduce the environmental impact of the clothing industry while enabling the workers to increase their incomes and afford a better life. India is the one of the largest employers of workforce in textile and apparel, only next to the agriculture sector.

CAIF has also been partnering with Lakme Fashion Week for the last two years to co-create and develop two initiatives – Circular Design Challenge and Circular Changemakers. It firmly believes that a credible dent on any of the 2030 SDGs isn’t possible without the role of the private sector. Through the body of work so far and a host of interested and willing partners, the industry body is already shaping work beyond just India.

In Bangladesh, it is building local and indigenous capacity within the apparel manufacturing sector for recycling of blended textiles waste (collection, sorting and recycling) and establishing an ethical and traceable collection mechanism for PET collection and recycling which is free of child-labour. In Sri Lanka, the communities living around and dependent on oceans, play a crucial role in designing programmes that look at how brands and manufacturers can help provide these underserved individuals and communities access to safe drinking water and sanitation, while restoring ocean biodiversity. Such an intervention is anchored in the community working towards zero leakage of textiles and plastics waste into the oceans through responsible and resource efficient collection, sorting and recycling solutions that create economic value for the underserved communities in the mid to long term.

All in all, CAIF’s efforts range from helping decarbonising the textiles and apparel supply chain in the global south, to getting to zero leakage of waste into the environment (from textiles, plastics, agriculture or forest products) while creating circular and green jobs in the manufacturing, recycling and the innovation ecosystems.

Mumbai,  1^st November– The Article, ‘Closing the Loop on Plastic Waste in India’s Textile and Apparel Industry’ by Siddharth Lulla, Lead Corporate Strategy and Enterprise Engagement, Circular Apparel Innovation Factory talks about how due to weak enforcement and the continuing popularity of plastic packaging among retailers and consumers in the absence of any suitable alternative, the country has not been able to achieve  substantial success in reducing the usage of plastics.

This article, was the 5th one as part of a 24 article thought leadership series we have forged with the Business World Group.

India’s plastic consumption has grown significantly over the last decade. As per industry estimates India consumes c. 16 million tonnes of plastic on an annual basis, contributing to generation of c. 9.47 million tonnes of plastic waste annually. Only 60% of the total waste generated is processed while the remaining is unsegregated, littered and ends up in landfills or the natural environment.

Around 43% of manufactured plastic is used for packaging purposes, majority of which is Single Use plastic i.e. used only once and disposed. While plastic packaging plays a key role of protection, marketing and advertising, the complete lifecycle of this is not thought through, resulting is substantial waste generation.

India’s textile and apparel (T&A) industry is one of the world’s largest, and is a major contributor to global textile and apparel production and consumption. The industry is estimated to be worth USD 190 billion by 2025-26.2 It currently employs more than 45 million people making it the second largest employer in India – contributing over 15% of the country’s export earnings, and almost 7% of the it’s industry output. Although the industry exhibits a positive trend in terms of growth on the back of an exponential rise in fashion retail and online shopping, it is a significant contributor to the Single Use plastic packaging waste generation.

Current Policy Landscape around Single Use Plastic in India

The Government of India has announced a number of steps to phase out and eventually completely stop Single Use plastics usage to reduce the country’s plastic footprint. The 2016 Plastic Waste Management Rules put curbs on use and generation of plastic packaging waste. This includes prohibition of carry bags made of virgin plastic less than 50 microns in thickness in order to facilitate ease of collection and recycling of plastic waste. Under the new rules the government now plans to ban bags less than 120 microns by next year.

Additionally regulations for Extended Producer Responsibility (EPR)4 have also been introduced, according to which the producers (manufacturers, importers and those using plastic in packaging) as well as brand owners would be held responsible for collecting the plastic waste they generate and ensure a minimum percentage of the produce is recycled or used in supply.5 The proposed EPR framework has provisions to impose penalties if producers fail to meet their targeted collection.

Due to weak enforcement and the continuing popularity of plastic packaging among retailers and consumers in the absence of any suitable alternative, the country has not been able to achieve substantial success in reducing the usage of plastics. However, a clear shift from regulatory intent to action is now visible. The Central Pollution Control Board (CPCB) has sent notices to 52 companies for not registering and specifying their single use plastic disposal plans under the EPR framework.

It is therefore, imperative for the T&A industry to adopt a strategy aligned with the principles of the circular economy to address challenges posed by single-use plastics waste.

The concept of a single-use plastics free circular economy, which can harness the benefits of plastics while addressing its drawbacks, and deliver significantly better system-level economic and environmental outcomes, is gaining traction in India and the rest of South Asia. Transition to such a circular system therefore, involves keeping useful plastics in the economy but out of the environment. This will entail simultaneous progress on multiple fronts including a re-evaluation of the plastics lifecycle, new commercially viable circular business models, development of alternative materials, new technologies, better land-based and marine plastic waste management solutions, awareness generation and enabling policy interventions.

In order to do so, India must adopt an integrated approach to collecting, segregating and recycling plastic waste that would ensure adequate recovery and collection mechanisms enabling producers and manufacturers to recycle plastic waste through a plug and play model.

There is an emergence of Integrated closed loop solution providers which have a holistic goal of reducing the generation of single use plastic in the ecosystem by collecting the waste packaging material from business/ end consumers, recycling it and converting it back into usable products. Such solutions fundamentally address the habit of waste disposal rather than just replacing the material through programs or mechanisms to collect all the recycled plastic products from various distribution points in the chain.

In an initiative to demonstrate a business case of how the entire plastic waste generated by a fashion brand can be collected, recycled and prevented from going to the environment, the Circular Apparel Innovation Factory (CAIF), an initiative by Intellecap, facilitated a pilot project in October 2020 between House of Anita Dongre, a brand at the forefront of sustainability in India and Lucro Plastecycle Pvt Ltd, a Mumbai based enterprise which collects and develops packaging from recycled post-consumer plastic waste.

House of Anita Dongre currently has 1200 retail touch points across the country. The pilot when scaled will recycle c. 6 Million polybags on an annual basis and manage the entire plastic waste generated by House of Anita Dongre at a pan India level. CAIF will disseminate the learnings and insights on best practices from this initiative to the industry. As per Rohan Batra, (Head Sustainability & CSR, House of Anita Dongre) the partnership with Lucro and CAIF has been huge step in making the brand reduce its plastic footprint and bring in efforts to reduce the carbon footprint due to plastic waste generated so far. Rohan points out that the pilot has already been successful in introducing 6.5 lac polybags with 60-75% post-consumer recycled content in the supply chain. Since its inception the pilot has resulted in a monthly average of 500 kgs of plastic waste and 1.25 lac polybags being recycled at House of Anita Dongre resulting in a conservative 30% savings in carbon footprint.

Lucro also provides a blockchain enabled traceability tool called Satma CE, which validates the origin & supply chain process of the post-consumer waste used. Ujwal Desai, MD, Lucro Plastecycle Pvt Ltd mentions that Lucros trademarked Plast-E-Cycle process creates a circular economy for plastic, making the recycling and remanufacture of plastics more efficient and high quality. It definitely helps that Lucro is involved in every step of waste management, from collection and segregation, processing into granules, product design and manufacturing of high-quality, innovative and eco-friendly products.

The partnership between House of Anita Dongre, Lucro and CAIF demonstrates that integrated closed loop solutions are poised to create a cascading effect in India’s T&A industry. It is evident that with the right support, innovative solution providers are ready and willing to drive significant environmental and social impact both in the country as well as demonstrate circular models that can be scaled globally.

Noble laureate and founder of Grameen Bank Muhammad Yunus on Tuesday emphasised on the creation of a new law for banking to help microfinance reach unbanked people and encourage the creation of social businesses. He said that currently, there is one banking law that prescribes a number of regulations for banks, most importantly of having collateral for offering loans.

“The first thing that I have been repeating for many years is that in order for microfinance to take hold in business, you have to create a new law for banking.

“Today, there is only one law for banking called banking law which defines what a bank should be. The banking law means that you have to have collateral and other requirements,” Yunus said at the 13th Sanklap Global Summit 2021.

According to him, for having a bank for the poor, there is a need for creation of a new banking structure which is not based on collateral.

“We need a complete redesign of the financial system. And within the financial system, we have to build a social business financial system-social business bank, social business investment funds, social business microcredit banks, and so on,” Yunus noted.

He also raised concerns over concentration of wealth in the hands of very few people.

Yunus said this gap can be reduced if everyone becomes an entrepreneur.

Finance is the oxygen of entrepreneurship and one cannot have entrepreneurs without having connections with the financial set-up, he said.

“Why can’t we create a new financial system, so that everyone has a connection with it. If you have a connection with it, then you change yourself and you can have a share in the wealth,” he added.