FAQs for download:

FAQ for prospective investors on Aavishkaar

FAQ on Aavishkaar processes

Here is a set of other frequently asked questions which should clarify most of your preliminary queries.

1. What is Aavishkaar's investment focus?
2. When initially evaluating an investment opportunity, what eligibility criteria are considered?
3. What stage of investment does Aavishkaar prefer?
4. Does Aavishkaar co-invest with other funders?
5. What is the average investment amount by Aavishkaar?
6. Will Aavishkaar expect a board seat for its investment?
7. Does Aavishkaar only work with micro-ventures that work together with a promoter such as RIN, TIFAC, Ashoka, etc?
8. What type of financing instrument does Aavishkaar use?
9. What return on its investment is Aavishkaar seeking?
10. How many investments does Aavishkaar make each year?
11. What is Aavishkaar's ideal investment?
12. What deals is Aavishkaar not interested in?
13. What type of information does Aavishkaar require?
14. Once I submit my business plan, how long will it be before I hear from someone?
15. What is Aavishkaar's investment process?
16. How will Aavishkaar be involved with my company after an investment has been made?

Investment Criteria

1. What is Aavishkaar's investment focus?

Aavishkaar invests in small enterprises that increase income in or provide necessary goods and services to rural or semi-urban India.  The enterprises must be commercially viable, environmentally friendly, and socially conscious.

2. When initially evaluating an investment opportunity, what eligibility criteria are considered?

In its initial evaluation, Aavishkaar looks at a venture’s commercial potential, development impact, social benefits, environmental impact, and its impression of the entrepreneur(s) promoting the company.

3. What stage of investment does Aavishkaar prefer?

Aavishkaar will invest in the initial commercial expansion of a proven business model, technology, or service.  It does not look to finance the development of a prototype or idea.

4. Does Aavishkaar co-invest with other funders?

Aavishkaar is open to co-investing, provided the goals of the other investors are consistent with Aavishkaar’s mission.

5. What is the average investment amount by Aavishkaar?

Aavishkaar’s targets investment amounts ranging from Rs. 10 lacs to Rs. 100 lacs, depending on the needs and merits of the opportunity. 

6. Will Aavishkaar expect a board seat for its investment?

Aavishkaar will expect at least one seat on the Board of Directors. Where appropriate, it may seek to nominate a second Director with relevant expertise and experience to the business.

7. Does Aavishkaar only work with micro-ventures that work together with a promoter such as RIN, TIFAC, Ashoka, etc?

No. While Aavishkaar has a strong working relationship with these organizations, their promotion is not a prerequisite for financing.

8. What type of financing instrument does Aavishkaar use?

Aavishkaar's primary financing instrument is common equity. Where appropriate, it will consider limited debt financing, in ventures where equity investment is or has been made.

9. What return on its investment is Aavishkaar seeking?

Aavishkaar has a minimum target Internal Rate of Return (IRR) of 32%.

10. How many investments does Aavishkaar make each year?

While the fund has no set limit, Aavishkaar targets between 4 and 6 investments annually.

11. What is Aavishkaar's ideal investment?

A commercially viable business that positively impacts life in rural or semi-urban India.

12. What deals is Aavishkaar not interested in?

Projects that do not benefit the rural or semi-urban community or are not commercially viable are automatically excluded.

Investment Process

13. What type of information does Aavishkaar require?

Information should be submitted to Aavishkaar in the form of a business plan.  Ideally, this plan will include:

-         Overview of the business

-         Financial projections for 3 to 5 years

-         Financial history for 3 to 5 years, as available

-         Backgrounds of the promoters

-         Description of financing requirements

14. Once I submit my business plan, how long will it be before I hear from someone?

Aavishkaar staff will follow-up with you within two weeks

15. What is Aavishkaar's investment process?

Aavishkaar begins by reviewing the venture’s business plan. The management team of Aavishkaar conducts a preliminary (Stage 1) review to determine if the venture meets its eligibility criteria.  If the Stage 1 review receives approval, a more detailed Stage 2 review is prepared for submission to the Management Board for review and approval.  If the Management Board approves the project, a full-blown due diligence review is undertaken. Aavishkaar's detailed investment guidelines are available on the website, by clicking here.

16. How will Aavishkaar be involved with my company after an investment has been made?

Aavishkaar will work in partnership with your management in a hands-on and active manner to ensure that the business achieves its goals. This will occur formally through Aavishkaar's role on the Board as well as informally through introductions to investors and strategic partnerships, technology advice, public relations, strategic planning, and follow-on financing, among others.