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Aavishkaar

BUILDING BHARAT SUSTAINABLY

Equity investments in early stage, scalable businesses catering to rural & underserved communities.

Basic needs: Health, education or energy through low cost offerings

Sourcing from these communities and creating value added markets

Creating livelihood options by reworking the business models such as a rural BPO, microfinance.

The underlying assets reasonably uncorrelated with the broader markets.

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Aavishkaar - An Introduction

4 funds focused on rural, underserved India Aavishkaar India

Micro Venture

Fund

Aavishkaar India II

Company

Aavishkaar Goodwell

l& II

Size $ Mn 14 120 49

Target Segment Rural Enterprises Rural, underserved

India

MFI and Financial

Inclusion

Investment Stage Early Early/Growth Early/ Growth

Vintage 2007 2011 2007, 2011

Fund Status Fully InvestedFirst close at $70 m,

Partially Invested

Fund l-Fully Invested,

Fund ll-Partially

Invested (Final Close

Sectors, Impact and Portfolio Companies

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Agribusiness Energy Health/

Sanitation/ Water

Education Financial Inclusion

Our sectors of focus

Impact

▪ Our portfolio companies outreach totals over 4.4 million disadvantaged people

▪ Over 54% of the investee outreach comprises women

▪ Carbon Emission Reduction 112,125 MT

▪ For every Rupee invested our companies have generated economic value benefit of 24x

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Some of our Investors & Partners

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Venture Funding at Aavishkaar

Investment Process

Details we seek

Details we check

Investment Process

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Finalization and Documentation

Legal/Accounting Due Diligence

SSA SHA Other definitive

documents

Stage 2

Conduct commercial due diligence including site visits, financial analysis

Obtain approval from the Investment Committee

Stage 1

Prepare brief based on initial conversations with promoters, get feedback from internal team for a Go - No Go decision

Team

Problem/ Opportunity

Solution

Social and Environmental Impact

Go To Market Strategy

Competitive Advantage

Business Model/Financials/Fund Requirement

Exit

Details we seek: Things you should cover in your pitch to an investor

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•Credibility, execution ability, background verification, reference checks Team

• Severity, Current solutions, TAM, Growth of market, barriers to entry Problem/ Opportunity

•Customer validation, Position in the value chain, and customer segmentation. Solution

• Impact on underserved, analysis of adverse effects Social and Environmental Impact

•Delivery mechanism, strategic tie ups, pipeline of customers Go To Market Strategy

• Innovation, product leadership, strong backend capability Competitive Advantage

•Assumptions, revenue model, scalability, capital efficiency, critical growth drivers, utilization of the funds sought

Business Model/Financials/Fund Requirement

• Likely exit routes, comparable transaction multiples Exit

Details we check: Thinking like a Venture Capitalist

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Investment: The Opportunity at Vana Vidyut Pvt. Ltd.

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COMPANY: Biomass power generation using energy plantations on owned / leased land as the source of feedstock.

VISION: To produce electrical power as cheaply and as predictably as possible from man-made, high-density,

regenerative forests.

INVESTMENT HIGHLIGHTS

Availability of own biomass supply

-Lower feed stock prices, high systems efficiencies because of controlled & consistent feedstock quality, and

protection against future price escalations of feedstock lead to higher margins than industry average

Strong need for renewable energy

-There are currently upto 12 hour power cuts in several rural areas and high reliance on imported fossil

fuels. Hence in addition to environmental reasons, there is strong support for RE for financial & national

security reasons

Competitive on a stand-alone basis

-Able to provide electricity economically, round the clock and as per the demand schedule.

-Estimated life-cycle total cost per kWh of under INR 2.50 per kWh as against INR 3.00 for domestic coal, INR

3.50 for imported coal and INR 4.00 for gas making it the only RE source with lower cost potential than large-

scale, conventional util ities

-Has the capability to replace conventional power sources in contrast to other RE sources which are only

complementary

VVPL: Challenges in the Biomass Industry

Challenge

• Delayed payments from distributors

• Bio Mass Availability

• Land procurement

• Power project financing out of favour

Mitigation

• Maximise captive sales to the extent possible.

• Captive upstream energy plantations. Like captive coal mines for a thermal power plant

• Non demanding land requirement of energy plantations. No diversion from food crops.

• Unique fuel-to-power in-house supply chain, small amount involved and 100% captive power sales differentiate from large scale coal and gas units.

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