The Economic Times reports that The Aavishkaar Social Venture Fund recently sold its stake in Rangsutra, an artisan-owned handicrafts company providing handicrafts to Fab India. The 23% stake earned a 42% internal rate of return (IRR) on an investment of Rs 22 lakh made in 2007.
Vineet Rai, founder of Aavishkaar, has already made two partial exits from Servals Automation, a rural energy solutions provider (at 65% IRR) and Shree Kamdhenu Electronics, an electronic milk collection services company (at 43% IRR).
The article takes a brief but honest look at the tensions between generating a financial return and satisfying investors and serving the needs of the underlying investments and these organisations’ beneficiaries.
The article can be read here.
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