Others in the board include Godrej Industries Managing Director Nadir Godrej, who had invested an undisclosed sum in LocalCircles in 2013 at concept stage, and Maruti Chairman R C Bhargava.
Launched in 2013, LocalCircles claims to be India's largest online citizen engagement platform that enables citizens to connect with causes such as civic issues, finding emergency assistance, law & order and governance.
"LocalCircles has built a community and network across the country in an admirably short span of time. I am making this investment because this is what is termed a 'shared value' project, where you can do well and do good at the same time. I think LocalCircles has the potential for make things better for average citizens, by empowering them to help themselves," said Mahindra.
"Anand Mahindra's understanding of social challenges in India will be a great asset for LocalCircles in achieving its potential to do good," said Sachin Taparia, chairman and chief executive officer of LocalCircles.
It enables one to connect with people who care about a cause — better neighborhood, fighting corruption, making the city cleaner/safer or assisting with emergency, he added.
The company already has communities in 200 cities. It is in discussions with several other social impact investors to raise Rs 20 crore.