Our Impact Driven Investment Thesis

Impact investing is gaining traction globally as investors recognize the significance of sustainability and social responsibility on long-term financial performance. As awareness of these factors continues to grow, there is increasing demand for investments that align with ESG principles. Moreover, Impact investing has the potential to drive positive social and environmental change while generating financial returns, making it an attractive proposition for investors. By leveraging these trends, we are confident that ESG investing will become an increasingly important sector for venture capital investment in the years ahead.

We take pride in our ability to identify emerging trends and we firmly believe that ESG investing will become a mainstream sector for venture capital investment in the years to come. There are several compelling reasons to support this vision, making it an attainable goal in the near future.

Driving factors

1) Government Driven Expansion

In August 2022, India amended its 2001 Energy Conservation Act to promote energy efficiency and conservation, and regulate the energy consumption of certain equipment, appliances, buildings and industries through energy consumption standards and codes, and the introduction of a carbon credit market India’s 2022 NDC has three main elements and the government is actively taking steps towards the fulfillment of these elements:

  • An emissions-intensity target of 45% below 2005 levels by 2030;

  • A target of achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030;

  • Creation of a carbon sink of 2.5 to 3 GtCO2 through additional forest and tree cover by 2030.

2) Increased ESG awareness

There has been a substantial increase in commitments from local governments and businesses globally to achieve net-zero emissions in the past year. As buildings are a major source of greenhouse gas emissions, the emergence of net-zero buildings presents a valuable opportunity for companies to contribute towards this goal.

3) New frontiers in Measurement and Transparency

Due to the implementation of stricter government regulations and policies that favor industries and businesses with high Environmental, Social, and Governance (ESG) compliance, companies are now seeking to align themselves with these causes. There has been a significant shift towards greater transparency in measuring ESG ratings and aspects. This is due to the widespread enforcement of regulations that adhere to international standards, which has created a pressing need for industries to prioritize their efforts in addressing these issues.

Though the government of India is taking measures to increase India’s overall ESG ratings, the steps taken are not enough. The government as well as the business community would have to come together and invest in technologies which align with internationally supported targets. To address the unmet needs in the country, we believe that the following sectors would play a crucial role in shaping the Impact Investment ecosystem of our country.

Clean Mobility - Unicorn India Ventures’ focus on clean mobility is directed towards creating sustainable livelihoods for men and women in the mobility space and improving the last-mile connectivity landscape in rural and peri-urban regions, especially for excluded, underserved and vulnerable groups

Regenerative Finance (ReFi) - In ReFi space, we are interested in projects leveraging blockchain to address sustainability challenges such as climate change, biodiversity loss, resource scarcity, and the underlying socioeconomic and institutional structures that exacerbate these crises.

Carbon Neutrality - Carbon neutrality is a state of net-zero carbon dioxide emissions. We love to explore companies who develop innovative technologies which enable carbon neutrality and side chain projects which grow linearly with the growing sector

ESG compliance and reporting SaaS - With government push towards the compliance and complications on counting and reporting the ESG scores, startups with innovative SaaS solutions, DIY software building solutions, KPI focused SaaS solutions and ESG compliance softwares etc will play a crucial role in achieving the country's vision.