Continuing with its promotion of social entrepreneurship, the Indian Institute of Management, Ahmedabad (IIM-A)'s Centre for Innovation Incubation and Entrepreneurship (CIIE), along with a group of impact investors and alumni of IIM and Indian Institute of Technology (IIT) has invested an undisclosed amount in Aakar Innovations.
Aakar is a hybrid social enterprise that manufactures high-quality, compostable and hygienic sanitary pads, which are priced below other branded, competitive products. These pads are produced and sold by women entrepreneurs in their own villages.
The investment round was led by CIIE with further participation from Artha Platform, a leading philanthropy community in India. The investment was carried out under the ACT for Impact Programme at CIIE, focusing on using alumni connections to bring more angel capital into the ecosystem. The program was supported by eminent philanthropic foundations including the Rockefeller Foundation, Omidyar Network and Dasra.
"CIIE is excited to be partnering with IIMA alums driven by a strong desire to create social impact along with generating financial returns. These angels bring a diverse set of expertise and shall bring enormous non-monetary value to the company," said Vipul Patel, senior manager, CIIE Initiatives. The not-for-profit arm trains rural women to run manufacturing units and create awareness about menstrual hygiene. As a part of this arm, Aakar has started a crowdfunding campaign called 'Freedom from Shame' to raise donations. "Over 100 donors have already given their support and we are looking to raise additional donations to support more women entrepreneurs," said Sombodhi Ghosh, co-founder of Aakar Innovations.
So far, around 22 machines have been sold across India of which 15 units are operational and the rest seven will be functional by mid-December. These machines, which are usually set up in rural villages and urban-slum areas, has led to the direct employment of over 200 women.
Talking about the investment in Aakar, Geeta Goel, Director, Mission Investing at Michael & Susan Dell Foundation said that Aakar is an example of a responsible, customer centric, cost effective solution to the issue of women's hygiene in rural and low income areas, a problem that has plagued us for several generations and is at the core of poor health of millions of women. Sombodhi was earlier associated with CIIE as an 'Entrepreneur in Residence' (EiR).
