Investing in Women: A Powerful Approach for Investors in India
Gender-lens (or gender-smart) investing refers to investments that achieve greater social and financial returns on investment by focusing on businesses that are owned or led by women, have good gender balance, and/or serve women customers with their products and services.
Given this double benefit, gender-lens investing is rapidly gaining momentum globally, with volumes of capital raised across private equity, venture capital, and private debt vehicles growing from $1.1 billion in 2017 to $4.8 billion in 2019. This includes various funds that are specifically looking to invest in women-led start-ups.
However, few Indian investors are proactively considering gender as part of their investment plan. FSG’s recent in-depth conversations with more than 20 leading impact investors in India revealed that while many expressed interest in the theme of gender-lens investing, few had actively incorporated gender into their investment strategies and processes.
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