No Guilt Profit

“Have you considered Social Impact Investing as an asset class?” is what my friendly banker asked me. “You mean in something like Facebook or Snapchat or Twitter? Certainly making a lot of social and financial impact from what I hear” I joked. He smiled knowing well that I did not mean what I said. He was right in his assumption. I have been toying to get into this space for the last couple of years; not as an investor, but as an active participant with direct involvement in some part of the process that leads to creating a social entrepreneur. It’s something that that is so dear to my heart; to make a positive difference – where scale really does not matter. It’s also been a personal belief that social enterprise and not charities are a better way of serving Society, as the elements of profitability and accountability force in the concepts of efficiency and scale. (Our self serving God men apply this rule selfishly and very successfully).   But, on a positive note, any enterprise that allows for personal fulfillment in climbing Maslov's pyramid and deliver the most basic need "a positive return on investment" is an exercise in "profit without guilt". I have read news and stories of some fabulous work being done in this area; and it would gratify me a great deal to raise a fund to ignite socially impacting ideas to reality.  Somehow, my CV has held no appeal to any of the organizations that I have applied to; and my involvement has been restricted to making modest contributions through crowd-funding to ventures that are being run by young professionals, and achieving a lot of good. So, yes, my eyes lit up, when Mr. Banker handed me an invite to attend an event on Social Impact Investing – where, I was told, I would meet up with several interesting personalities connected with this space; and if not – I was in for a fabulous themed dinner organized by Chef Hemant Oberoi himself. What an incentive – intellectual and/or intestinal gratification.

Interesting personalities is an understatement. I met some magnificent minds, both young and old that evening. What I heard from them was a revelation; something that shook and stirred my soul enough to put down their views in my blog as a mark of salute to their enterprise.

It struck him that the art of weaving hand knotted rugs would soon die out in Rajasthan; as the people involved in the weaving process were from under privileged minorities. To survive, weaving was just not enough means to earn money or respect. It was not that there was no money in the trade; in fact there was lots of it; but most of the money was sliced out by the middlemen and end traders. So to set the system right; defying caste, community and family ostracization; he created an organization that now contracts over 45,000 artisans as job work contractors spread over 600 villages in 6 states of India, producing 500,000 rugs every year. For Nand Kishore Chaudhary; the journey began in 1978 with a modest capital of Rs 5,000 and some space in the backyard that he borrowed from his father to set up 2 looms and 9 weavers. His growing proximity to the “low caste” weavers disturbed his family; but for him, it was a lesson in understanding of their joys and pains – which is why he feels - he has been able to achieve the scale at which “Jaipur Rugs” operates today. His social business model is a matter of dissertation at top ivy-league institutes; and while he has won tons of awards and accolades with a few brickbats too – none of it seems to have impacted his simplicity or humanness.

 The second man who impressed me was probably as old as the first; somewhere in his early sixties – at least from his looks. He started an enterprise just 3 years and not 3 decades ago with a capital of around Rs 30 million that today commands a valuation of Rs 300 million hearing which several side conversations went into silence. His business vision took seed as a solution to providing clean energy to the millions of radio towers that provide uninterrupted mobile telecommunication capability to the many million cell phone users across India. “Do you know how much diesel is consumed each year to keeps these towers powered?” asked Sushil Jiwarajka. “Close to half a billion liters. Do you know that there are over a billion handsets that are in use in India as we speak” he added. “Do you know half the diesel meant for these towers is stolen by the diesel mafia?” His Company OMC (Omnigrid Micropower Company) set up small solar and battery power units for these towers and the villages in the immediate vicinity. He told us stories of places in India which had mobile phones but no electricity and the sufferance of the people, especially women and children because of the lack of power. Some of the stories came straight out of unbelievable but true; like how a woman accidently poisoned her crying child at night - thinking she was giving him milk to quell his hunger. He then described the change that a single light, fan and electric point from a 15 Watt battery in each house made to the entire social behavior of the village they resided in. He was told he would wind up his company in less than a year as people would not pay for the power as well as destroy the infrastructure he was creating incited by the power lords in the area. In fact, the empowered people have stood up against the power mafia and have taken up the safety and security of the mini solar plants the same way they would protect their own homes. Payments for the power are prompt based on a pay as you use model. There was a time when getting a single rupee to fund his idea was an exercise in futility and today there are large international funds wanting to invest in his venture. Social entrepreneurship has been gratifying for him and his investors.

The third person I stood up to cheer was a young man of 23. He walked up confidently to the dias and started off by saying “A year or so back, my company did a turnover of Rs 50,000 a month. Today it does around Rs. 5 million a month. I intend to take the turnover to Rs 50 million a month by next year end and raise US$ 100 million on the stock market soon thereafter”. I have seen and heard many confident young visionaries and that did not impress me much. But, this boyish looking man, an engineer from MIT (USA), winner of multiple citations and awards from heads of states including ex-President of India Mr. Abdul Kalam is blind from birth. His parents hail from rural Andhra Pradesh and were advised by well wishers to dump the blind child in the well, as he would be a burden to look after. Thankfully, the parents of Srikanth Bolla did not heed to the advice and today he runs a company that produces packaging and consumer products made from tree waste. But wait, that is not the impressive part either. Most of the people working in the company are physically or intellectually challenged. He may be visually challenged, but that has not stopped him from understanding how to create a manufacturing process that can be more efficiently run by the disabled than people we call normal. Now that really requires some vision. There are some 80 million disabled people in India and Srikanth serves as a role model that provides them with the self esteem that they are not a burden to society. Incidentally, he is not out do any one a favour - he truly believes that a disabled person is actually more efficient than a normal person because of the passion and commitment level of the former to have been entrusted with responsibility. Now tell him how can one not stand up and applause at his achievements?

I met several people that evening who have given up top paying jobs with multinationals to pursue social entrepreneurship. By no means are they driven by altruism; and by no means greed either. They have understood that the intellectual capital in terms of adaptive talent is phenomenal in what most describe as the bottom of the pyramid population in India. That segment not only presents a sea of opportunity but an ocean of pent up demand; and servicing that simply - cost effectively - in sync with the social and natural environment is equal to a universe of smiles for all.  

Let me end by saying, the dinner did not disappoint either and I left with a lot of food for thought. 

Executive Uber MBA in an hour.

It was my first ever Uber cab ride - courtesy my banker. He was insistent that I attend an event organized by the bank; and I was adamant on not driving all the way to the Taj Mahal hotel from North Mumbai, and so, the ride. I was surprised that Uber was operating after what I believed was a total shut down of services across India post the cab-rape incident in Delhi.

“Namaste Sir; my name is PP and welcome to my Uber Cab. Which road would you want me to use to take you to the destination – the fastest of course is the Western Express Highway” is how my driver greeted me. He looked about 30 something; his accent told me that he was from North India and his smile told me that I am in for a ride where there would be an almost one sided nonstop conversation for the next hour and a half (that I had estimated to reach the hotel). I told him to take Linking Rd. as the traffic would be minimal given the afternoon hour at which we were traveling. No argument or dirty look. Just an “as you wish Sir”. I think he logged in the path on the phone app. and we were on our way.

I think he was waiting for his cue to open his mouth, and I just played into his hands by asking him how Uber was back in service so fast after being shut down by the authorities? PP said that the Company had given an assurance of complying with the dictates of the authorities within a specified period and all the drivers who already held a taxi-driver badge, licenses and permits as required by the authorities had been asked to resume accepting orders. The badges are issued by a central agency and not the State authority I learnt; to keep a better check on the antecedents of the drivers – whichever State they hail from. My retort was that in that case, following the verification directive stipulated would be a great way to keep out rogues and would be villains from offering taxi service and avoid Delhi type incidents. PP looked back flashing a sarcastic smile and said “Do you really believe that Sir? It is usually the good guy who does not get the badge. The ones with a record are almost always well connected to a political persona at whatever level and barking orders are issued for their badge. The Delhi incident was not the first ever in a cab, but a first in an Uber cab. How come such directives were never issued before? You can understand Sir what I am trying to say. Uber has no political patronage and as of now most drivers working for other cab companies are shifting in hordes to Uber, which is hurting other cab companies a lot. Now I hope you understand what I am saying Sir” and he looked back again to see the expression on my face.

He continued “You know; if Uber had asked every cab it engages to put its logo on the cab, then, every one of them would have been stoned or burnt. Thank God! None of the cabs are identifiable. Sir, what can I say; ever since Uber has come it has been a boon to the taxi driver. We make lots of money even though our ride costs 30% less than the “Kali-peeli” and radio cabs. The drivers who sign up for Uber are given lessons in etiquettes to customers. We are told not to expect nor ask for tips. No money has to exchange between the driver and guest. Sir, if you don’t like my service or you think I am taking you the wrong way to your destination – you can complain about me and I will not get paid and you will not get charged. Uber can verify whatever you are saying because I have to log in the path I will take to reach you to your destination; and on service, it is your word against mine. On the other hand we drivers also can rate customers. If someone is abusive or misbehaves we can put a black mark against that customer. 5 such marks and Uber will blacklist the customer. If I carry a “drunken” guest and that guest pukes in my car – I have to just send the picture to my controller and I am authorized then to get the car washed and cleaned at a service station. The charges are collected from the guest. But under no means am I allowed to de-board my guest, until I reach the guest to the destination. Can you believe Sir, 2000 + cabs in Mumbai are controlled by just 5 Uber employees? Sir, people have liked our service so much that quite a few don’t use their own cars. I have a few regulars and when I ask them why they use Uber, I am told that the price they pay per month is at times less than the fuel and salary of the driver they incur.” That was an interesting lesson in hospitality and the emerging sharing economy. Strangely: I heard the exact same thing about Uber just a few days back from the CEO of a near billion dollar valuation company in the ticket booking space. Had he taken a ride with PP as well? Actually he had been educated by an Uber driver in Delhi. Are guys like PP Uber drivers or Uber Ambassadors? 

By this time, I was curious to learn more about his experience with the other cabs he had operated. “Sir, I started off with the black and yellow (BY) cabs and switched to operating a radio cab no sooner they came in the market. I thought life would be better driving a nicer air conditioned car rather than the ancient rickety BY cabs. But I soon discovered that I was actually jumping from the frying pan straight into fire. I was nothing more than a contracted slave. To make the same amount of money as I would earlier, I had to work twice as many hours. Then, there were situations where I could not take a fare because the time given to me to reach the pickup point was just impractical. No Sir, I could not refuse a fare punched by the company; and if I did there was a fine of Rs. 50. So the procedure was to call the Company call centre and explain why the fare was being refused. The time it took to complete that process would add up to more than just paying the penalty. I can keep telling you the problems I faced Sir, but never mind. I could leave the BY cab owner anytime I wanted but in this case I had signed a bond. Since I like to learn (I am sure talk is what he meant), I use to ask my foreign guests how cab services worked overseas. I learnt about Uber from them, and when I heard that it was starting in Mumbai, I applied as well. Sir, I have now booked my own car and I am pretty sure the way things are improving in India; I will own 15 cars by 2018”. Now that was a pretty specific and well laid out business plan. “Good luck PP; so you will then engage 15 drivers under you? Then, I guess your life will be set?” Yikes! Why did I ask that?

“Set? No Sir, it’s just the beginning. You see Sir, I always wanted to be a leader and ride in a car with a beacon and have gun carrying bodyguards following me around. My plan is not to engage just any 15 drivers. I will go back to my village and engage the Kids of all the village influencers. What do they earn in the village? Hardly anything. If I pay them each Rs. 25,000 a month they will be called millionaires back home. All the best girls will want to marry them. Their life will be set. For girls in the village – Mumbai and Delhi is like staying in America. Trust me Sir, even after paying them that much, and paying car EMI, I will still make a profit. To fight an election in my area with the influential people backing me will not cost much. My profit of 1 year will be some Rs 50 lakhs – more than enough Sir. I will fight as an independent and I will win. I will do anything to make my dream come true Sir. If I want, I can ask my family to fund my dreams; I come from a landed family where my father is a high caste leader. But, if I do ask him; he will play me the way he wants and I don't want my views to be influenced by anyone.” Wow! Now that was a hard core power plan I had just heard. I could not resist but compliment his confidence. Oops!

“Confidence; yes Sir, I am very confident about myself. I have trained myself to be physically and mentally strong. When I was back in Lucknow; I spent two years with the “Naga-Babas” (a highly evolved ascetic who has renounced everything including clothes) and they taught me that if you have control on mind and body you can achieve anything. I have fasted for ten-ten days at a time - several times. I can beat up a guy twice my size. You don’t believe me, do you? But, Sir, why will I lie to you. I really can”. I just nodded not wanting to open up another conversation. “You know why I want to join politics Sir?” and without waiting for my response “when I first came to Mumbai, I got employed as a driver with a person who was friends with a minister’s son. They had studied together. My employer was barely 23 or 24 but in those days he got a loan of Rs 500 crores to start of a company. Sir; he was a nobody – lived in a rented house and had a second hand beaten up car. All he did was pimp around for the minister’s friends and today he has one of the largest real estate companies in India. Sir, nothing is hidden from the driver. I knew then itself that to achieve something big in this world a person needs power – money follows power. Look at Mr. Kejriwal. Sir, he is my hero. He stood up for good of the common man like me; and while he lost the elections, we cannot forget how he took on the battle with very big and very powerful entities. See, I even have the “Aam Aadmi Party” cap. He made too many enemies and everyone plotted to bring him down. If he fights for election again – I will support him any and every way I can”.

“So you are not very happy that Mr. Modi became PM?” I asked. “He is a good man Sir. A lot like Kejriwalji. And of course he is a seasoned politician. Kejriwalji should not have taken a “panga” with him. That was his biggest mistake. Mr. Modi will do a lot of good for India. I just know it. This Country will progress. But, I don't like anyone else in his Party. You know why he won Sir? His name. Yes Sir, his name is so easy on the tongue to chant and all his slogans and jingles were designed to give strength to his name. They were so good and catchy that they got embedded in the brain and that is how there was a Modi wave in this Country. Sir have you observed that when he speaks to people in India he wears saffron clothes and delivers his speech like a preacher. He has given up his family, he has no children, so there is no visible ulterior motive in his actions. That's why people believe him and trust him.  But after 5 years he must go. Unless the ruling party changes every 5 years corruption will never go from our Country. Look at the Congress. It was a good party once upon a time. But because it controlled the centre for so many years – it started taking us people for granted. No party should take people for granted. Leaders who cannot respect the people they lead are not leaders. I will be a good leader Sir. I will work for the people and improve their life. I will make sure people don’t have to run to cities to get a better life. What they think is a better life is actually hell. Look at this City Sir, there is no oxygen. There are no trees so how can there be oxygen. Back home we have gardens and greenery. Food is pure and much cheaper than here. We have time to meet friends and family. Nothing but anger and stress here Sir. No wonder there are so many crimes. But, things are changing back home as well. People are selling land meant for producing food to make factories and new homes. We will all die because of what we are doing. We cannot eat money. I have seen my friends build palatial homes and buy cars and everything from money they got selling their ancestral land. Then in a couple of years they are broke. All the money spent. Today their palatial home is on sale, but it is not enough to buy the land they sold back.” Simplistic but true view of political and people psyche I thought.

“Sir, you must think I am a Mr. Know-it-all? Sir, I am a good judge of people. I meet so many new people every day. Good, bad, happy sad, pious, crooks, all sorts Sir. I can tell by the face, walk, talk, sitting pose what kind of person is sitting in my cab”. I dared not to ask what he thought of me. “I make friends with my talk and leave such an impression that no one can forget me. I like studying people. That is how I will be able to influence people. Just like Modiji. They simply will not be able to say “No” to me. You know Sir, I can charm any woman I like. But, I don’t. I think the minute a woman comes into my life, my whole plan of becoming who I want will go for a toss. That’s why I have a girlfriend. She was a hooker once, but I reformed her. I have set up a Chinese food stall for her back in Kolkatta. Now she and her family earn a decent living. She came here to join films and ended up in the flesh trade to support her stay here and a chance to get a part in a movie. She comes from a good family. Her parents don’t know what she did here; and I threaten her that if she strays again I will tell them what she did here. Now her younger brother is old enough to look after the stall so I am thinking of calling her to Mumbai to drive the car which I am buying. Women driver will be in demand now – especially after the Delhi incident. But, I have told her no marriage and if she wants kids, I will not give them my name. I will make her sign a contract to that effect else she will haul me in for rape someday. I just cannot trust an angry woman. For her, I am her husband. But Sir; though I don't believe in caste etc, I want my children to be from pure stock. I want to educate them at the best school and colleges in India and America. I want to give them all that I did not have. I don't want them living here when they grow up - I want them to stay in America. There if you are educated and willing to work hard, you can become a billionaire without cheating. Anyway Sir, we are a minute away from your destination.”      

We ended the journey. Just 10 minutes behind schedule. As I was leaving the cab he said “Sir, one day in this very cab I will find my financier who will help me achieve my dreams”. Did he read my mind that I was attending a conference on “Social Impact Investing”? “Thank you PP. It has been a very interesting an educational trip riding with you. Hope someday soon I will be riding in your cab again” I said. “Most certainly Sir. I will give you a good point and you give me one too – if you think I deserve it. I value my Uber rating very much. And Sir, you will certainly read of me as an independent elected MP in UP in the 2019 elections. Please don’t forget me” he said; with an ear to ear brimming smile. I left him with an amused smile knowing that I had just fast tracked an Uber MBA from a real life “White Tiger”*who will achieve whatever he told me – at any cost.

‘* The White Tiger -  by Arvinda Adiga

1 Lakh = 100,000

1 crore = 10,000,000