A sketch of Nagaraja Prakasam (Credit: Nagaraja Prakasam)

From the matrilineal societies of Meghalaya to nonprofits in Uttarakhand to startups working on regenerative agriculture to the new age entrepreneurs who have understood that Carbon is the new gold, I have met many of them and have learned from them. They are coming up with new solutions to solve the problem of climate change, pollution, and waste generation. It has been an exhilarating journey and I hope I have captured some of it.

Venkatesh Kannaiah: Investments in the social enterprise sector are at times focused on people and technology is only a backdrop. How have your investments been different? Does tech and scale play a part in your investment decisions?

Nagaraja Prakasam: People in Bengaluru think that a smartphone app is the solution to all problems. Their idea of technology begins and ends with an app.

Tech plays a large part in my investment strategy, but that does not mean people are neglected. Tech should solve a social problem, and if it is not the case it does not interest me.

For example, one of my investments is in Saahas Zero Waste, which works on resolving the garbage problem in large companies/organisations in Bengaluru. It also brings about a dignified life and lifestyle for the garbage industry workers. Saahas is now a leader in providing end-to-end waste management solutions to bulk waste generators. It has now started working on building robots for waste segregation. It is now onto becoming a Rs 100-crore company.

One of my investee companies, Carbon Masters, works to provide Bio CNG solutions for hotels, industries, and large residential complexes. Biogas seems very old tech but Carbon Masters have worked on many innovations making it sustainable and cost efficient. At the end of the day, the problem it seeks to solve is that wet waste does not go out to landfills in the outskirts of cities, while it can be treated and used profitably near the place where it is generated.

Nagaraja (Right) at his Carbon Masters, Siddapet plant. (Credit: Nagaraja Prakasam)

Another of my investee company, GoCoop, works with handloom weavers and along with my next investment, we are working to put a device in every loom, which will provide the geolocation of the loom and it would include the details of the weaver too. With this we are looking to provide genuine visibility to the buyer of the product as to how and where the handloom product is made.

One of the companies which I was an early investor in is Neurosynaptic Communications, which has a novel telemedicine product. It has created a tool kit that can be used by those who have cleared Class 10 or 12 to administer 35 different tests in an identity-secure manner.

Many of my investee companies marry my philosophy with their business acumen. I put people and the planet first, profits would come later.

Venkatesh Kannaiah: You are a mentor in various innovation forums across the country, and have also been an investor. What is your take on government-led innovation initiatives, like setting up incubators/ accelerators/ awards. Has it really worked?

Nagaraja Prakasam: There will always be leakages in any system, and it is the same with the innovation scene in India. There has been a mainstreaming of innovation by the government and it has led to concepts like 10,000 startups which has led to a significant attitudinal change. Ideas like Startup India Seed Fund Scheme and building of the backbone for innovation like Aadhaar and UPI have significantly altered the ecosystem for innovation.

For example, the NSRCEL centre at IIM-Bangalore is 22 years old. This has been a long journey and various governments have all done their bit for innovation. The speed has certainly picked up now.

Venkatesh Kannaiah: As founder chairman of Nativelead, what is the philosophy behind that initiative? How has it been doing and what have been the challenges?

Nagaraja Prakasam: Nativelead and its investment arm Native Angels are pioneering initiatives to address the socio-economic challenges faced by small towns. Our journey commenced in 2012. We have effectively connected local high net worth individuals with their roots, with a platform that connects them to young entrepreneurs in their hometowns.

We have chapters in the cities of Madurai, Coimbatore, Chennai, Trichy, Karur, Erode and Tuticorin with more than 240 investors and around 100 mentors. It is a radical rethinking of small town entrepreneurship, where we are trying to recreate a situation that exists in places like Bengaluru with angel investors, mentors, and startup founders.

Nagaraja is now an author as his book Back to Bharat: In Search of a Sustainable Future has hit the shelves. (Credit: Nagaraja Prakasam)

We work with organisations like CII in various places and they help us in our effort. We have even seen exits in Nativelead with Nativespecial earlier and now with Uzhavarbumi.

Venkatesh Kannaiah: What are the challenges and learnings from Nativelead and how can other states or organisations use it to promote entrepreneurship in other states?

Nagaraja Prakasam: The challenges are many and over time we’ve been able to address and find a model that works very well now. Traditional business houses are now starting to understand Angel investing. We have a decentralised model of management, so each town works on building their local ecosystem, the way that works best in their town. After years of effort, we are seeing an uptick in more startups and investors.

A serial entrepreneur, Nagaraja Prakasam calls himself Naga the Farmer. (Credit: Nagaraja Prakasam)

States like Kerala have emulated this model as Malabar Innovation Entrepreneurship Zone (Mizone). We provided knowledge and expertise in running these platforms, and we are willing for the concept to take off even without our name. In Kerala, it is called by a different name, and we are fine with that.

Venkatesh Kannaiah: Can you tell us about some of your startups which have created substantial social impact using technology?

Nagaraja Prakasam: Right now, one of our startup companies, Saahas Zero Waste is diverting 23 metric tons of waste from landfills. It also offers consultancy services to plan and design a waste management facility for new and existing properties. Our services aim to manage waste by recycling them into recycled products to bring us closer to a circular economy. They also offer extended producer responsibility or EPR services to brands and manufacturers.

Venkatesh Kannaiah: You have been a part of impact investment forums like Acumen. How has the impact investment space changed in India over the years? Is more investment forthcoming? And has the Indian ‘bottom of the pyramid’ enterprise story reached Indian and foreign investors?

Nagaraja Prakasam: The impact investment scenario in India is a confusing one. There is a lack of clarity on what is an impact investment. According to some, even electric car manufacture is impact investment. And those investors who were always looking at the top end of the consumer spectrum are finding some stagnation and hence are looking at the rung below the top end.

However, most of them have ignored the bottom quarter of the population and its needs. Products which relate to them, and which look out for people and the planet are those which create impact and where investments are needed.

Now every cleantech investment is being dubbed as an impact investment. There might be the environment factor, but if it does not have people and their livelihoods in the forefront, then it cannot be considered as an impact investment.

I have recommended to the government that there is a need for formulating a clear identification and authentication of social businesses.