Thimpu-based SAARC Fund (SDF), a regional funding institution of South Asian Association for Regional Cooperation (SAARC), plans to soon launch a social enterprise development programme (SEDP) to fund 80 ventures every year across eight-member states, reported PTI.

SAARC member states include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka. SDF is in the process of launching the SEDP as part of its social window, the report said quoting SDF CEO Sunil Motiwal.

The social window currently funds projects targeting poverty alleviation, social development, education, health, human resources development, besides funding needs of communities, micro-enterprises, and rural infrastructure.

The programme will be aimed at identifying and building social enterprises by using a mix of grants and concessional returnable capital, it said.

SDF was launched in 2010 and its governing council comprises finance ministers of the member countries. It has already committed $73.74 million for social window projects as of date out of which it has disbursed $47 million to the member states, the report added.

SDF is currently implementing 12 regional projects with more than 70 implementing and lead implementing agencies covering all the member countries under the social window funding. It recently gave in-principle approval for two infrastructure projects in energy sector including a waste to energy project in Sri Lanka and a hydropower project in Nepal. The total loan commitment would be $30 million.

The SAARC region is also witnessing some funding activity and interest from regional venture capital and private equity players. In December last year, Axiata Digital, the digital services division of the Malaysian telecom operator Axiata, announced the launch of a $15 million venture capital fund for Sri Lanka. In July, Singapore-based Prestellar Ventures launched a $100 million VC fund exclusively for India, Nepal, Bangladesh and Sri Lanka. The fund will identity innovative entrepreneurs and invest in ticket sizes of $2-3 million, typically in a pre-Series A deal.

A year back, 500 Startups, a Silicon Valley-based startup accelerator, launched a $25 million regional fund focused on India, Sri Lanka and Bangladesh. Recently, India urged Asian Development Bank to invest in fintech and health startups to help improve the quality of life in Asia.

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