Promoting social entrepreneurship in Sri Lanka through strategic impact investments
The Impact Enterprise Fund (IEF) is a groundbreaking initiative that promotes social entrepreneurship in Sri Lanka through impact investments. A partnership between the Lanka Impact Investing Network (LIIN) and the UNDP, IEF invests in businesses with strong growth potential and a clear commitment to making positive social and environmental impacts.
Fund Size
USD 5 Million
Investment Ticket Size
LKR 15M - 100M
Investment Duration
Up to 5 years (+3 years extension)
Stage Focus
Acceleration and Growth Stage
Currency of Investment
Sri Lankan Rupees (LKR)
Investment Philosophy
Focus on growth capital for companies at the acceleration or growth stage. These companies must exhibit substantial growth potential and a quantifiable degree of positive social and environmental impact.
Investment Instrument
Debt or Convertible Notes
Agriculture & Fisheries
Tourism
Climate & Renewable Energy
IT & Education
Healthcare
Apparel & Textile
Sustainable Construction & Affordable Housing
Prospective portfolio companies will receive pre-investment and post-investment Technical Assistance facility to enhance their investment readiness. This will significantly reduce the perceived risk of the companies and help unlock further investment opportunities.
IEF is a partnership between LIIN and UNDP. This enables the portfolio companies to receive curated Impact Measurement and Management support to fine tune their impact practices, metrics and reporting to meet international standards.
IEF intends to invest in companies that fulfill the following selection criteria
Enterprises must have minimum annual revenues of LKR 15 million (established in the market) and demonstrate potential to grow towards the upper limit of LKR 80 million.
At least 25% or 30% of revenue should be generated from export markets. This showcases the company's ability to thrive in competitive international markets, adding resilience and scalability potential.
Enterprises should have a minimum net asset value of LKR 3 million to ensure financial stability.
Enterprises should maintain positive cash flow to sustain operations, ensuring they generate enough revenue to cover expenses and manage the business for 3 to 6 months without heavy reliance on external funding.