Venture fund to target India's neglected Dalit people
The Dalits, a group that faced years of prejudice at the bottom of India’s caste system, are set to benefit from the country’s first ever venture capital fund focusing solely on Dalit-owned enterprises. It plans to support a combination of start-ups and more established ventures.
The $95 million vehicle is set to begin operation in August of next year and is in the process of seeking a first round of investors, targeting a mixture of high net worth individuals and financial institutions in both the private and public sectors. It is backed by the Dalit Indian Chamber of Commerce and Industries, the Financial Times reported.
Prasad Dahapute, a Mumbai-based banker leading the team setting up the fund, said the aim was to make strategic investments that have the potential to quickly accelerate the pace of Dalit capitalism. It will look to make minority investments of around $2 million apiece in 10 businesses during the first year of operation.
According to India's last census, conducted in 2001, there are at least 167 million Dalits in the country, comprising 16% of the total population. Despite various affirmative action programs, the group remains underrepresented in business, particularly among owners of private enterprises.
Speaking at the annual Dalit trade fair, held in Mumbai last weekend, Ratan Tata called for the introduction of new legislation mandating Indian businesses to source up to 10% of their raw materials and components from Dalit-operated companies.
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