India has emerged as the world’s third-largest startup ecosystem, experiencing phenomenal growth. The 2023 Hurun India rich list includes 84 startup founders amassing a wealth of ₹4,23,600 crore. These founders, along with key figures in leadership positions within these companies, have accumulated considerable wealth and are keen to engage in philanthropy much earlier in their careers. This upswing in wealth creation within the dynamic and entrepreneurial startup cohort holds promising implications for the philanthropic sector in India.
We are beginning to see some emerging shifts where Now-Gen givers (first-generation wealth creators) are investing in diverse sectors—education, health care, climate action, livelihoods—as well as establishing centres of excellence by reimagining giving approaches.
Tech-Savvy Now-Gen Givers Now-Gen givers characterised by their tech-friendliness are leveraging data, tech and narrative building to inform their philanthropic decisions and supporting their grantee partners with both financial and advisory/mentorship support. For instance, Rekha and Rizwan Koita, through the Koita Foundation, are using technology as a catalyst to enhance the efficiency and effectiveness of NGO interventions. Similarly, Donald Lobo, through the Chintu Gudiya Foundation and Project Tech4Dev, is actively fostering an ecosystem of open-source platforms and services, prioritising responsible technology deployment for the public good.
Openness To Collaborate Now-Gen givers are embracing collaboration with various stakeholders, spanning businesses, government, and companies. Their commitment extends beyond financial contributions, as they use their influence to unlock resources from their peers and networks. Examples include Nikhil Kamath’s Young India Philanthropic Pledge (YIPP), inspiring leaders in the startup ecosystem to commit at least 25 percent of their net worth to philanthropic causes through diverse crowd-fundable projects, fostering engagement among personal networks and fellow entrepreneurs.
Nikhil is one of Zerodha’s co-founders and the youngest philanthropist on EdelGive Hurun India Philanthropy List 2023. Another example is ACT Grants, a collaborative effort initiated in 2020, uniting around 50 venture funds, 100 founders, and 25 global foundations to respond to Covid-19. Evolving into a dynamic community, ACT Grants now fosters innovations with the potential to address complex social problems at scale across diverse sectors.
Now-Gen givers are steering philanthropy into a new era marked by innovation and a comprehensive approach to problem-solving. For example, Nithin Kamath, along with Kailash Nadh and the core team at Zerodha, founded the Rainmatter Foundation which focuses on supporting climate action initiatives.
The Foundation is bringing together a coalition of like-minded people, including scientists, researchers, think tanks, non-profits, innovators, investors, youth networks, legislators—to build knowledge banks and help define a systems approach to climate response.
Another example includes Prashanth Prakash’s efforts through the Krishikalpa Foundation to address livelihood challenges, especially in agriculture, ensuring that farming communities experience tangible benefits from technological advancements across the Agri Value Chains—by forging stronger connections between the next generation of farmers/FPOs and startups in the agriculture space.
In this critical decade for India, the ascent of techpreneurs and the substantial wealth they generate not only signifies an economic shift but opens avenues for unlocking substantial philanthropic capital. These forward-thinking individuals are well poised to take riskier bets, leverage learnings and domain expertise to tackle issues at a systemic level and focus on the root causes of complex development issues, rather than solving only for symptoms.
First Published: Feb 14, 2024, 17:23
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