Upaya Social Ventures Successfully Exits From Resham Sutra, Celebrates Creation Of Dignified Jobs In India’s Silk Industry
Bangalore, India | August 7, 2024
Upaya Social Ventures is pleased to announce its successful exit from Resham Sutra, a New Delhi-based social business dedicated to empowering local artisan communities by providing solar-powered silk yarn production machines. This exit is a significant breakthrough for Upaya and its commitment to foster dignified employment in the handicrafts sector.
Resham Sutra, meaning “silk thread,” was founded by Kunal Vaid and his father, Ratan Vaid, who have revolutionized India’s sericulture industry by making wild silk production more sustainable. Resham Sutra’s innovative and affordable solar-powered machines have replaced traditional and labor-intensive methods, effectively doubling productivity and income for reelers and reducing drudgery. By addressing the critical need for mechanization in the silk supply chain, Resham Sutra has uplifted livelihoods, bringing dignity and financial stability to some of India's most vulnerable communities in Chhattisgarh, Bihar, Jharkhand, Odisha, and other Northeastern states.
During Upaya's investment period, Resham Sutra achieved significant milestones, including the creation of dignified jobs at scale, with a notable percentage being women jobholders. The company also saw expansion of its Rural Experience Centers that have provided vital training to a new generation of reelers and spinners, offering them opportunities to lease and eventually own these life-changing machines. Additionally, the company’s Farm-To-Fabric initiative has established infrastructure for production, and sales, connecting smallholder farmers with new market opportunities and strengthening the rural silk value chain.
Kunal Vaid said, expressing his gratitude, “our association with Upaya came at a very opportune time as it helped us transition to offering a complete suite of services to the rural yarn producers and weavers. The Upaya team helped us define our theory of change and understand the critical aspects of making impact sustainable.” He added, “we have been able to leverage their financial and non-financial support to streamline our Rural Experience Center-based business model that helps us handhold rural women producers throughout their journey from, becoming a nano-entrepreneur till they attain self sufficiency. During this period, we've been able to reach 10,000 women producers, expand to new geographies in Northeast India, and launch the Gram Sootra digital platform, a full stack solution for rural textile producers.”
Ankur Mehta, Director of Investments and Portfolio at Upaya said, “this partnership signifies how patient capital can bring stability and sustainability to social enterprises enabling them to take their work to the next level. This exit demonstrates that impact investments can result in profitable outcomes. A sustainable business model of an enterprise like Resham Sutra, combined with the patient capital of impact-first investors like Upaya, creates a scalable model as the funds can be reinvested to seed other impact enterprises.”
Resham Sutra's achievements have been recognized by various organizations, reflecting the significant impact the company has made in the sericulture industry. Previously, the company had secured grants from organizations like Villgro and CEEW's Powering Livelihoods initiative. Resham Sutra recently secured follow-on funding from Acumen Academy as part of their Pioneer Energy Investment Initiative: Powering Livelihoods Using Solar (PEII+) fund, which is focused on building a clean-energy-powered economy that benefits people living in poverty.
AB Chakravarthy, Co-CEO of Upaya added, “Kunal and his dedicated team are exceptionally positioned to scale their impact, having established a strong product-market fit and secured follow-on capital. At Upaya, we are confident they will make a lasting difference in supporting underserved communities through their innovations in the Farm-To-Fabric silk value chain."
This exit is a pivotal moment for Upaya and the donors who contributed to Upaya’s first Pool of Recoverable Grants (PRG), a pioneering funding mechanism that allows philanthropic funds to be recycled for continued impact. Resham Sutra was funded from Upaya’s first $1 million PRG in 2021, and the success of this venture validates the confidence the donors placed in Upaya's mission to create dignified jobs through strategic investments in social enterprises. The exit also underscores the viability and effectiveness of Upaya's PRG model in generating both social and financial returns.
As Upaya exits its investment, it looks forward to seeing Resham Sutra continue its mission of innovation and sustainability in the silk sector. Upaya remains committed to investing in and supporting social ventures that create dignified employment opportunities uplifting people out of extreme poverty in India.
ABOUT UPAYA SOCIAL VENTURES:
Upaya Social Ventures is a nonprofit organization building an inclusive economy by providing investment and support to early-stage businesses creating dignified jobs for people living in the most extreme poverty.
Upaya’s award-winning, impact-first model seeks out and supports oft-overlooked companies creating work that is safe, stable, inclusive, and rewarding—generating a transformative impact on families, communities, and economies.
Since its founding in 2011, Upaya’s portfolio companies have created over 42,000 dignified jobs across India. Please visit upayasv.org for more information.
MEDIA CONTACT:
Madlin D’silva
mdsilva@upayasv.org