Grassroots Business Fund Invests in Jaipur Rugs to Drive Economic Development in India
The Grassroots Business Fund (GBF), a global impact investing organization, is proud to announce a $1 million investment in Jaipur Rugs, one of the largest manufacturers of hand-knotted carpets in India.
Jaipur Rugs uses a decentralized rug production system, centered on a network of 7,000 low-income home-based weavers and an additional 3,000 wool spinners. Looms are placed both in individual homes and in community based production centers, where artisans are provided with training, materials and designs. Click here to learn more about the artisans who work with Jaipur Rugs.
Businesses like Jaipur Rugs, which have operations in emerging markets, can transform their economies and the standard of living for people in their communities. In India for example, small and medium enterprises (SMEs) are vital to the Indian economy: employing 60 million people and creating 1.3 million jobs every year.
However, oftentimes these businesses lack the resources or expertise to achieve success, scale and reach sustainability.
The Grassroots Business Fund (GBF), working through a unique nonprofit/for-profit hybrid model, is able to partner with these businesses to provide them with both the long-term investment capital and the business advisory services they need to overcome the challenges on the road to profitability and sustainability.
Through a long-term partnership with Jaipur Rugs, GBF will also be providing additional areas of support through its business advisory services, including marketing, governance, financial planning and social and environmental compliance. These services are provided by international and local service providers as well as GBF’s own professional staff.
Jaipur Rugs has been recognized internationally, including through C.K. Prahalad's famous book Fortune at the Base of the Pyramid. To learn more about the case study, visit The William Davidson Institute's website, or GlobaLens.