Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Do you have a little extra cash that you want to spend for a good <keyword id="22752" type="PERSON" weightage="100" keywordseo="cause">cause</keyword>? Have you always wanted to help a cause but didn’t know where to put your money? Or do you own a company that focuses on corporate social responsibility and wants to make sustainable <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword>? One way of doing it is to donate the money, but there’s a small snag. The money you spend is gone for good – it can’t be used multiple times to help more people. But how about helping people as many times as you want, using the same capital you have spent in the beginning? And getting the entire amount back in monthly repayments? Call it sustainable giving or crowd lending, this kind of financial model enables you to do all these and one <keyword id="6404679" type="UNKNOWN" weightage="100" keywordseo="start-up">start-up</keyword> is leveraging it to enhance life at the <keyword id="140518" type="UNKNOWN" weightage="100" keywordseo="bottom-of-the-pyramid">bottom of the pyramid</keyword>. 
 Welcome to <keyword id="2108864" type="UNKNOWN" weightage="100" keywordseo="Milaap-Social-Ventures">Milaap Social Ventures</keyword>, a social enterprise operating from Bangalore and <keyword id="6356662" type="COUNTRY" weightage="100" keywordseo="Singapore">Singapore</keyword>, which has developed an online crowd-funding platform to help the unbanked and the <keyword id="2108896" type="UNKNOWN" weightage="100" keywordseo="Underprivileged-masses">underprivileged masses</keyword> in <keyword id="3658" type="COUNTRY" weightage="100" keywordseo="India">India</keyword>. Simply put, <keyword id="6734688" type="UNKNOWN" weightage="100" keywordseo="Milaap">Milaap</keyword> (it means ‘connecting together’ in Hindi) offers an RBI-approved micro-lending platform that allows the organisation to receive ‘loans’ from all over the world. Although <keyword id="2108903" type="UNKNOWN" weightage="100" keywordseo="Individual-lenders">individual lenders</keyword> don’t get ‘financial returns’ on their investments (after all, you are putting in your money for a ‘good cause’), they get the principal back after the stipulated period. They can then re-deploy the money to help another person/project or cash out their principal. This helps create a <keyword id="2108904" type="UNKNOWN" weightage="100" keywordseo="Continuous-funding-cycle">continuous funding cycle</keyword>, more effective and sustainable than one-time donations. Want to know more about how Milaap is connecting the haves and the have-nots in a bid to help implement life-enhancing projects? Here is a snapshot that captures the start-up’s vision and viability. 
 
Who runs Milaap (milaap.org): A team of three co-founders – <keyword id="1270675" type="PERSON" weightage="100" keywordseo="Sourabh-Sharma">Sourabh Sharma</keyword> (<keyword id="5645" type="POSITION" weightage="100" keywordseo="CEO">CEO</keyword>), <keyword id="2108870" type="PERSON" weightage="100" keywordseo="Anoj-Viswanathan">Anoj Viswanathan</keyword> and <keyword id="2108865" type="UNKNOWN" weightage="100" keywordseo="Mayukh-Choudary">Mayukh Choudary</keyword>. Sourabh, a graduate from the <keyword id="87108" type="ORGANIZATION" weightage="60" keywordseo="National-University-of-Singapore">National University of Singapore</keyword>, started his first company, a mobile app start-up, straight out of college and ran it for more than two years. Next, he had a stint with corporate houses but soon joined hands with the other two co-founders to start Milaap. 
 Anoj holds a degree in Engineering from the National University of Singapore and he is also a StartingBloc Fellow (2010). Prior to co-founding Milaap, he had worked with SKS <keyword id="113684" type="COMPANY" weightage="100" keywordseo="microfinance">Microfinance</keyword> and focused on the energy and water services space. Earlier, he had been at <keyword id="2108863" type="UNKNOWN" weightage="60" keywordseo="ReEx-Capital-Asia">ReEx Capital Asia</keyword>, a cleantech investment boutique in Singapore, and served as a fellow at D.light Design. He is also a founder member of the <keyword id="2108877" type="UNKNOWN" weightage="60" keywordseo="Microfinance-Society-in-Singapore">Microfinance Society in Singapore</keyword> and leads the Milaap team in India. 
 Mayukh is an <keyword id="198748" type="POSITION" weightage="60" keywordseo="electrical-engineer">electrical engineer</keyword> from IIT Madras and holds a PGDM from IIM Lucknow. He specialises in building technology-enabled financing models and worked as a <keyword id="2108874" type="UNKNOWN" weightage="60" keywordseo="financial-risk-consultant-in-Dubai">financial risk consultant in Dubai</keyword> before starting up Milaap. 
 
What inspired the venture: A sabbatical that changed life. In 2008, Anoj took some time off to be with SKS Microfinance and worked on a project to provide solar lanterns on credit in a few tribal villages in <keyword id="6357961" type="CITY" weightage="100" keywordseo="Odisha">Odisha</keyword>. There he met Mayukh who was then working with the solar lantern-maker D.lightdesign. While on this project, Anoj noticed how <keyword id="6621346" type="UNKNOWN" weightage="100" keywordseo="Small-loans">small loans</keyword> impacted life in a big way, especially at the bottom of the pyramid, and the idea of Milaap came to his mind. Developing a crowd-funding platform to connect India’s underprivileged with prosperous individuals and <keyword id="2108906" type="UNKNOWN" weightage="100" keywordseo="Institutional-lenders">institutional lenders</keyword> across the globe seemed the right way to go about it. Anoj, who knew Sourabh from 2006 when he interned at his previous start-up Microappli, got him and Mayukh together to give shape to the idea of Milaap, which finally went live in June 2010. 
 
What’s the pitch: <keyword id="2108919" type="UNKNOWN" weightage="100" keywordseo="Lend-a-little">Lend a little</keyword>, <keyword id="2108920" type="UNKNOWN" weightage="100" keywordseo="change-a-lot">change a lot</keyword> – that’s Milaap’s motto and it has started happening. “India has a large pool of people who don’t have access to traditional banking, but they do require <keyword id="2108923" type="UNKNOWN" weightage="100" keywordseo="Funds-for-self-employment">funds for self-employment</keyword> and developmental initiatives. So we are leveraging the global reach of the <keyword id="6357247" type="PERSON" weightage="100" keywordseo="Internet">Internet</keyword> and trying to ensure that people – either individually or through their <keyword id="23045" type="UNKNOWN" weightage="100" keywordseo="social-networks">social networks</keyword> – can raise and lend capital to the millions who are unbanked and underprivileged,” says Sourabh. 
 Milaap is currently targeting over 700 million Indians who are mostly living in the rural &amp; semi-urban areas and unable to access formal sources of <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword>. According to the social enterprise, less than 5% of them are able to procure reasonably priced, life-improving loans for their small businesses, vocational training or other essential household assets, and that’s where the ‘loans’ raised by Milaap come in . 
 
How it works: At Milaap, the work is done in two stages. One part is <keyword id="2108932" type="UNKNOWN" weightage="100" keywordseo="Shortlisting-borrowers">shortlisting borrowers</keyword> and publishing their profiles/projects on Milaap.org for crowd funding. Second part is deployment of the loans, monitoring their usage and ensuring timely repayments. Understandably, the second part is more cumbersome and requires a lot of offline work. Milaap has already tied up with 20-plus carefully selected ‘field partners’ (chosen from a wide range of <keyword id="164768" type="UNKNOWN" weightage="100" keywordseo="Microfinance-institutions">microfinance institutions</keyword> or <keyword id="113682" type="ORGANIZATION" weightage="100" keywordseo="MFIs">MFIs</keyword>, <keyword id="1417942" type="UNKNOWN" weightage="100" keywordseo="Social-Businesses">social businesses</keyword>, <keyword id="2108940" type="UNKNOWN" weightage="100" keywordseo="Vocational-training-institutions">vocational training institutions</keyword>, etc.,) to identify the most deserving candidates/projects for loans. Once they are selected, each <keyword id="2108943" type="UNKNOWN" weightage="100" keywordseo="Borrowers-profile">borrower’s profile</keyword> is uploaded on the site, along with the fund raised till date and the amount still required for completing the loan. 
 Lending online is quite simple, though. Browse through the profiles to choose a borrower or select one from an impact area that you feel strongly about. You can also use various parameters such as cause, <keyword id="6379164" type="ORGANIZATION" weightage="100" keywordseo="LOCATION">location</keyword>, <keyword id="2108946" type="UNKNOWN" weightage="100" keywordseo="Project-urgency">project urgency</keyword>, <keyword id="2108948" type="UNKNOWN" weightage="100" keywordseo="Repayment-period">repayment period</keyword>, women-centric projects to fine-tune your <keyword id="2108951" type="UNKNOWN" weightage="100" keywordseo="Borrower-search">borrower search</keyword>. After the loan payment is made online, Milaap disburses the amount to the concerned <keyword id="2108956" type="UNKNOWN" weightage="100" keywordseo="Field-partner">field partner</keyword> and the end-borrower gets it from the field partner. When repayment is done (end-borrower – field partner – Milaap), ‘credits’ are accumulated in your Milaap account. When the loan is fully repaid, you can either withdraw the money or roll it into another project. As for diehard do-gooders, there are even more options to <keyword id="2108961" type="UNKNOWN" weightage="100" keywordseo="Start-fundraising">start fundraising</keyword> for the projects you prefer. 
 
Claim to fame: The concept and the build-up. According to the co-founders, crowd-funding is still a niche concept in the country but it is gaining traction gradually. Till date, Milaap has raised and disbursed over Rs 8.4 crore in 8,633 loans, impacting more than 46,393 people across 11 states in India. These loans are essentially raised to fulfil a wide range of <keyword id="2108963" type="UNKNOWN" weightage="100" keywordseo="Developmental-requirements">developmental requirements</keyword> including <keyword id="566897" type="ORGANIZATION" weightage="100" keywordseo="basic-education">basic education</keyword> &amp; vocational training, <keyword id="572926" type="COMPANY" weightage="100" keywordseo="seed-capital">seed capital</keyword> for small businesses, <keyword id="2109008" type="UNKNOWN" weightage="100" keywordseo="Access-to-clean-water">access to clean water</keyword> &amp; <keyword id="49770" type="UNKNOWN" weightage="100" keywordseo="Sanitation">sanitation</keyword>, and <keyword id="2109012" type="UNKNOWN" weightage="100" keywordseo="Safe-lighting">safe lighting</keyword>. Moreover, Milaap boasts 100% repayment of loans till now, indeed a rare feat when banks and big <keyword id="34503" type="COMPANY" weightage="100" keywordseo="financial-institutions">financial institutions</keyword> (<keyword id="4776620" type="CITY" weightage="100" keywordseo="FIs">FIs</keyword>) are suffering from the rise in bad loans. 
 The organisation is also focusing on <keyword id="2109025" type="UNKNOWN" weightage="100" keywordseo="Pan-India-expansion">pan-India expansion</keyword>. “Earlier, we were mostly operating in states like <keyword id="20154" type="ORGANIZATION" weightage="80" keywordseo="tamil-nadu">Tamil Nadu</keyword> and <keyword id="13126" type="COMPANY" weightage="100" keywordseo="Maharashtra">Maharashtra</keyword>. But now we are scaling up our operations and growing in states like Odisha, <keyword id="65591" type="CITY" weightage="100" keywordseo="Mizoram">Mizoram</keyword> and even Gujarat,” notes Sourabh. 
 
Show me the money: While a borrower gets the entire sum offered by the lender, Milaap charges its field partners a 5% fee on the loans disbursed through them, to cover its operating costs. Its field partners, in turn, charge affordable interest from the end-borrower to meet their operating costs. Milaap also makes sure that all fees are disclosed upfront. 
 
Unlike many other ventures in this space, this social enterprise is a for-profit concern, but has not reached break-even yet. However, it has found some solid backers and already raised $1.1 million in Series A venture funding in May 2013. The money raised is being utilised for developing the online platform further and scaling up operations. “We want the number of lenders to go up to 100,000 in the next 18 months. That is the tipping point from where we can gather momentum and look at break-even,” adds Sourabh. 
 The <keyword id="2026013" type="UNKNOWN" weightage="100" keywordseo="Series-A-round">Series A round</keyword> was led by Singapore-based <keyword id="969909" type="ORGANIZATION" weightage="80" keywordseo="Jungle-Ventures">Jungle Ventures</keyword>, an early-stage investment firm and an approved <keyword id="2109042" type="UNKNOWN" weightage="100" keywordseo="Technology-incubator">technology incubator</keyword> under the <keyword id="2109044" type="ORGANIZATION" weightage="100" keywordseo="Singapore-National-Research-Foundation">Singapore National Research Foundation</keyword>’s Technology Incubation Scheme. Other investors included <keyword id="2109045" type="UNKNOWN" weightage="100" keywordseo="Toivo-Annus">Toivo Annus</keyword> (<keyword id="170488" type="POSITION" weightage="100" keywordseo="co-founder">co-founder</keyword> of <keyword id="6377887" type="COMPANY" weightage="60" keywordseo="Skype">Skype</keyword>), <keyword id="2072941" type="UNKNOWN" weightage="100" keywordseo="LionRock-Capital">Lionrock Capital</keyword> (a Singapore-based <keyword id="2109046" type="UNKNOWN" weightage="100" keywordseo="Family-investment-office">family investment office</keyword>), <keyword id="2108869" type="PERSON" weightage="80" keywordseo="Jayesh-Parekh">Jayesh Parekh</keyword> (Co-Founder, Sony Entertainment Television) as well as existing investor, <keyword id="1509738" type="ORGANIZATION" weightage="80" keywordseo="Unitus-Seed-Fund">Unitus Seed Fund</keyword>. The company is looking to raise a Series B round worth $3-5 million in the second half of CY2014. 
 Earlier, between August 2010 and January 2012, Milaap raised $250,000 in seed investment from Unitus Seed Fund, <keyword id="211897" type="COMPANY" weightage="60" keywordseo="First-Light-Ventures">First Light Ventures</keyword>, <keyword id="198636" type="PERSON" weightage="80" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword> (Founder, <keyword id="338385" type="COMPANY" weightage="60" keywordseo="One97">One97</keyword>) and <keyword id="2108867" type="UNKNOWN" weightage="80" keywordseo="Rajiv-Madhok">Rajiv Madhok</keyword> (Founder, <keyword id="312199" type="ENTERTAINMENT" weightage="60" keywordseo="Oorja">Oorja</keyword>). 
 Interestingly, only 40% of the total lending amount comes from individual lenders (mostly from India, Singapore, the US and <keyword id="6356687" type="COUNTRY" weightage="100" keywordseo="canada">Canada</keyword>) while 60% funding comes from institutional lenders, social funding and even family offices. But unlike <keyword id="2109229" type="UNKNOWN" weightage="100" keywordseo="Small-lenders">small lenders</keyword>, large institutional and <keyword id="2109230" type="UNKNOWN" weightage="100" keywordseo="HNI-lenders">HNI lenders</keyword> get 3-4% return on their loans. 
 
Biggest challenge: There is competition from a few sites like <keyword id="1658892" type="UNKNOWN" weightage="100" keywordseo="Kiva">Kiva</keyword> or Wishberry, but it is still a niche space and <keyword id="2109065" type="UNKNOWN" weightage="100" keywordseo="Discoverability">discoverability</keyword> is the main challenge now, feels Sourabh. “We need to do more marketing and promotion to let people know such a platform exists. That will help us get more lenders on board, more field partners and subsequently, help more and more people get life-changing access to capital,” he says. 
 
A word for wannapreneurs: Take the plunge and do it. ‘Now’ is always a good time to do it – so don’t hesitate. I always feel that the risk part is overrated in entrepreneurship. You actually need the experience before you can succeed. So start early and make sure that you get the kind of experience you need for long-term success. Your first initiative may not be all that great but at least, you would have learnt from all your mistakes. Try fast and fail fast before you can succeed.

This Social
Enterprise Runs A Global Crowd-funding Platform; Eyes $3-5
Million In Series B Funding

<keyword id="153607" type="ORGANIZATION" weightage="100" keywordseo="social-entrepreneurship">Social entrepreneurship</keyword> is the application of business acumen, strategies and entrepreneur skills not for profit but to improve the conditions of human beings and the environment, and India does need it for effective social change, growth and reforms. 
 
Despite the best efforts of the government and other organisations, about 400 million Indians live on less than $1 per day. The 2012 HDI (human development index) report for countries indicates a poor ranking of 136 out of 187 for India. 
 
India has been concentrating on a growth index through manufacturing and IT sectors but the resulting benefits have not gone to the bottom of the pyramid. Income inequality has doubled in the last 20 years. 
 
India is unique in the diversity of its regions and people. Often local problems need local solutions. It is here that social entrepreneurship or social entrepreneurs or SOCENTS come into the picture and build bridges to social improvement. 
 
Combine this with the Indian spirit of Jugaad and there have been innumerable instances of simple inventions and adaptations that have changed life for the better not just economically, but on the comfort level also. 
 
A growing change in the perception of life goals has led to a large number of educated, highly trained professionals turning into SOCENTS. This is desirable as they bring their professional and business acumen and can create and put into place working, sustainable and profitable solutions to local problems. 
 Harish Hande, co-founder of <keyword id="1535069" type="UNKNOWN" weightage="100" keywordseo="Selco-Solar">Selco Solar</keyword>, has over the past 18 years through his company installed over 1.35-lakh solar systems. He went a step further and created an entire ecosystem, including finance and farmer co-operatives to create income generating activities. The Selco Incubation Centre mentors social entrepreneurs. Selco Foundation, the philanthropic segment of Selco, provides the rural poor with renewable energy services that they can use for income generating activities. 
 <keyword id="168701" type="PERSON" weightage="100" keywordseo="Verghese-Kurien">Verghese Kurien</keyword>, father of the Milk Revolution, turned India form a milk importer to the world’s largest milk producer and today AMUL is a byword in milk and dairy products. 
 
Interestingly, many of the projects have not been single product innovations but have led to all-round related growth and development. They have transformed not just individuals but communities and in the case of Kurien the whole country. 
 
Eye care was one of the most neglected health sectors in India. Doctor G Venkataswamy founded the Aravind Eye Hospital, which is today one of the world’s largest facilities for affordable, top-quality eye care. 
 
Vaatsalya Healthcare brought healthcare to the rural poor. 
 
Doctor Sugata Mishra’s Hole in the Wall experiment with computer accessibility to untrained poor children was a success in making computer knowledge available and was a starting point for other social enterprises for furthering computer education amongst the poor. 
 
The list is endless. India is the global centre for social entrepreneurship. 
 
However, the biggest boon has been the rise of ‘Microfinance’. Vikram Akula established SKS Microfinance in 1988 paving the way for several social microfinance set ups such as Milaap at the grass root level. 
 
The tremendous contribution made by SOCENTS should be encouraged. The government should make it easier for Indian and foreign investments in Socents via easy taxation policies, regulatory frameworks and guidelines. The government could also create social impact bonds like in the United Kingdom to encourage social innovation. Another project that can be emulated is the Singapore Impact Investment Fund that provides private and public platforms for raising capital efficiently for social enterprises. 
 
The corporate sector has also contributed and the Tata group has been in the forefront through their various trusts and the Tata School of Social Sciences in fostering social entrepreneurship. The Shell Foundation-funded Husk Power Systems in its enterprise to obtain power from rice husk. 
 
The government has now made it mandatory through the CSR Bill (corporate social responsibility in the new Companies Act) for big corporations to set aside 2% of their profits for social programmes that include investments in social business ventures. This will open up funding of more than a billion dollars for Socents and further growth of social entrepreneurship in India. 
 
India should take into account depleting natural resources and focus on environment-friendly and sustaining social innovations to balance growth with environment concerns. The China example of economic growth at the cost of rising pollution should serve as a deterrent. Pollution has become one of the major causes of social unrest in China. 
 
The changes in economic models from capitalism to a more socially responsible capitalism have thrown the focus on social entrepreneurship. 
 
Social entrepreneurship is here to stay and could well be the major economic growth factor for India and to achieve the ‘Indian dream - sarvajana sukhonobhava’, ie, let everyone be happy.

Social Entrepreneurship In India Is The Panacea For Social Change And Improvement

Founders of Indian start-ups who have tasted success early in their respective ventures and making money are now taking up philanthropy and using their skills and resources to upskill people and transform society. 
 Many entrepreneurs like Naveen Tewari, founder of In-Mobi, his former chief revenue officer Atul Satija, Phanindra Sama of <keyword id="6359128" type="COMPANY" weightage="80" keywordseo="Redbus">redBus</keyword>, and <keyword id="1622254" type="UNKNOWN" weightage="80" keywordseo="Satyen-Kothari">Satyen Kothari</keyword>, founder of Citrus Pay are using personal skills, time and resources that had helped them build their disruptive businesses. 
 
Economic Times reported that 37-year-old Tewari got together 100 alumni from his alma mater Harvard Business School ten years ago and mobilised about Rs 32 lakh to impart education in a village near Mathura. Currently, the village has three schools, proper roads and electricity. 
 
Now, apart from Wipro's Azim Premji and HCL founder Shiv Nadar, poster boys of start-ups are also getting on the social side. 
 
"For me, whether I have money or not, it is far more important that there is an intent behind a cause that's pure and can change the lives of certain people. If that's there, then you will be able to get all the resources required,” Tewari told the financial daily. 
 
Tewari's colleague Atul Satija, 39, quit InMobi in April to launch a non-profit organisation, Nudge Foundation, sinking in Rs 1.27 crore ($200,000) of his personal money to help upskill people. 
 
"Poverty alleviation is close to my heart. In my 20s, I decided I would get into social side at 60. By early 30s things were going okay in my career and I thought I could do it in my 40s," Satija, who previously was the head of wireless business for Japan and Asia-Pacific at Google, told ET. 
 
Satija said Nudge will work with illiterate and unskilled people and help them get jobs. "We want to take them out of the cycle they grew up in and make them semiliterate, skilled with a majority of focus being on life skills," Satija told ET. 
 
Sama, who was running bus ticketing firm redBus, left him with no mental bandwidth for much else. 
 After selling it to Ibibo Group in 2013 for about Rs 800 crore, he teamed up with Raju Reddy, former board member at redBus, to replicate the Sandbox model adopted by Hubli's <keyword id="6691921" type="ORGANIZATION" weightage="80" keywordseo="Deshpande-Foundation">Deshpande Foundation</keyword>, in their home-town Nizamabad in Telangana. The model brings principles of entrepreneurship to social causes, thereby fostering innovation. 
 
"I had no mindshare on the topic of social impact and I wanted that - it makes you a balanced human being," Sama told ET, unwilling to disclose personal resources he's parted with. 
 
ET reported that Nizamabad Sandbox has implemented 200 projects in the past year, each with about 20 people involved, translating to over 2,000 changemakers and two semi-companies. 
 
And for those like Kothari of Citrus Pay, who is still wired into their ventures full-time, the desire to give back is no less. 
The financial daily reported the emergence of peer-to-peer lending platforms such as Milaap and Kivah has created new credible avenues for the socially sensitive. 
 
Kothari has been active on Milaap since February last year, and lent about Rs 50,000 so far. 
 
"There is pride with this form of lending - it's not a handout for borrowers who feel they have to work hard towards paying it back. For lenders like me it creates a continuous exponential cycle of goodness because after 6-12 months I get the money back, which can be used to give out another loan,” Kothari told ET. 
 
Many (including primary schools teachers) gave him grants and loans to pursue a computer science degree at Stanford. "It's a question of strangers helping strangers and that's the big motivating factor," he said. 
 
(Image: Thinkstock)

You Searched For "Milaap Social Ventures" and got 3 results

This Social Enterprise Runs A Global Crowd-funding Platform; Eyes $3-5 Million In Series B Funding

Sanghamitra Mandal

Social Entrepreneurship In India Is The Panacea For Social Change And Improvement

Preetam Kaushik

Poster boys of Indian start-ups are now taking up philanthropy

BI India Bureau

Popular Keywords

Buying Guides