Vineet Rai is the founder and Chairman of Aavishkaar.
The Aavishkaar Group is the global pioneer in taking an entrepreneurship-based approach towards development. The Group is focused on developing the impact ecosystem in the continents of Asia and Africa. Aavishkaar Group manages assets in excess of USD 1.2 Billion (INR 8000 Crores) across Equity and Credit, with 7,000+ employees present across India, Indonesia, Bangladesh and Kenya. The Group’s ecosystems include Aavishkaar Capital – Impact fund manager focused on Global South, Arohan- One of India’s largest & most digitally advanced microfinance institution (NBFC-MFI) targeting low-income households, Ashv Finance- Phygital NBFC, offering unique cash flow based business loans to Micro, Small & Medium Enterprises and Intellecap – Global Impact advisory firm providing Consulting, Investment banking and Inclusive networking platform.
The Group’s shareholders include TIAA-Nuveen, Triodos Bank, Shell Foundation, and Dutch Entrepreneurial Development Bank FMO.
Aavishkaar Group group has over the last 20 years; through its various initiatives served the need of 100+ million underserved customers in India, Indonesia, Bangladesh, Sri Lanka, and East Africa.
Q. How has been your journey from IIFM to this role?
A. I never intended to join IIFM, the credit goes to father of my friend Jayesh Bhatia who found me loitering on the roads of Jodhpur regularly and assumed that his son’s ‘good for nothing’ friend may not do anything worthwhile in life. It was 1991, nation was mortgaging its gold to save the future and the face, and I was cycling around with my entire focus on joining the Army. Bhatia Uncle brought me the IIFM advertisement cutting and admission form for the entrance exam and also the draft to send with the filled application form which he guided me in filling too and then gave me Jayesh’s GMAT book to prepare for it!! With so much hard work put in by him I had no choice but to appear for the exam. And as destined, I got an interview call and well I loved the building and when the call came, I just joined. At that time the two motivations were the generous scholarship, and the unique architecture and rest did not matter! Serendipity or Accident – My life has been full of such generous contributions from amazing folks.
Once in IIFM, I quickly figured out that sleeping is the best investment and thankfully Aarya Ji and others allowed me to score just the right amount of attendance to appear in the exams! Classroom was equally appealing option once I managed to leave the bed, and instead of sleeping at the back of the classroom, I use to sit in the first row, right under the nose of the Professor with my ever protective batch mate Ratna on my right (she was one of the brightest student) and Paul Basil on left (another topper) and allowed to snooze peacefully! And if by any chance the “risk” walked closer, Ratna was vigilant to save me from any serious risk to my life and limb.
An interesting anecdote is about my credibility with Professors. One Professor once remarked “Russians became believers when they say India function and if Vineet Rai gets a job I would turn believer”!! Well God heard him; I was one of the first few to land a job … and credit to the professor for motivating God to let it happen!!
I met Swati Pant (now Rai) at IIFM. A bright student whose grades went downhill post our friendship and credit goes to yours truly. Although we saw very little of each other due to minimal overlap between the two batches, but we belonged to the pioneering species of IIFMite who dated or married cross batch (Senior and junior batch)…. Credit for this pathbreaking trend goes to Pranay Lal, I was just a follower!
BILT was an interesting experience, a dead decaying paper mill in Odisha but nice and shining to naïve inexperienced me!! Much later I understood that it was worst possible position on offer. I recall HR manager asking me “30, 60 or 90” and I was like what does that mean? It was the time most people survived who were fresh city bred joinee. I lasted 1300 days is another story. I got married while in Odisha and had convinced Swati that I live like a King … when she landed in my heavenly abode and saw a Cobra, Russel Viper and Karait as house pets it was not a convincing argument any more– no electricity and no running water were icing on the cake… Swati casually put me on notice – Find an alternate job or say goodbye to wife…. I chose the wife…. Searched vigorously for a job but who wanted a forest dweller in a city … finally IIM Ahmedabad said Aye – they were looking for one in a billion Indians- who worked for a corporate and lived in forest… Come 1997 I was at IIM-A, 10 months of typing behind a computer was enough to make me miss the elephant and bear chasing in a forest, I quit with no job in hand and a one-year son as an additional feature in our lives!!
Government of Gujarat was setting up probably India’s first incubator at that time and I applied for the post of Manager. I was the last on the list to be interviewed and at the end of the interview, the panel head- Advisor to the Chief Minister- asked – “CEO Banoge” – so at 25 years and 10 Month I became CEO of a non-descript yet to be born government organization. 4 years at GIAN as CEO and after successfully converting 7 crude farmer innovations into business – I got an aha moment!! – Indians have dime a dozen ideas but no money to fund them and no talent to guide them and with this bright vision I appraised the Board confidently about the need for rural risk Capital to fund talent in villages. The Board heard me but politely told me to continue doing what I was doing!!
Patience was not a virtue that I possess and aggrieved I instantly quit – (Act first, think later is a genetic gift from my action-oriented family from Uttar Pradesh) – I was convinced I was wise, insightful, and most importantly right while my Board (with 6 additional Chief secretary & 3 IIM Profs) were all old and insecure and unable to identify with my world-beating vision!
My life savings at that time was a princely INR 5,000 which I used and started a fund called Aavishkaar and then borrowed INR 1 Lakh from Swati (Which her father had given her as a back-up as he never trusted my ability to earn enough) to start a company called Intellecap/ Intellectual capital to fulfill this bright vision. A forester trying to start a venture fund with no background for rural India is as bizarre as it can get. I just did not know how stupid it was.
After that it has been a wild roller coaster of up and down, few up – more down but a thriller that thrills at every turn. Do read this impact report to read the story from Swati’s eye to get another perspective –
https://aavishkaargroup.com/wp-content/uploads/Aavishkaar_Impact_Report2020.pdf )
Q. What were some of the key milestones/learning in this journey that you would like to share with us?
A. Getting Married was a milestone – Swati allowed me to stay irresponsible and entrepreneurial.
Having a son and daughter was another one – it added planning to my desire to risk everything!
Being naïve, overconfident, and young allowed me to leave the security of the Government job with no backup… another big milestone…. The genetic gift of Act first, think later helped in such decisions – not something I would advise others to follow!!
And finally, attracting talent that was superior to me and letting them lead. I had no fear but limited talent, they had all the talent but feared failure and so the combination worked wonders for both sides.
Q. What is the most satisfying part of your current role?
A. Ability to dream the impossible… Learning that we are limited by our mental boundaries; everything is possible, and nothing is impossible.
To meet people who have built incredible institutions and see them as normal human beings with likes, dislikes, and all human vanity…. Gives me so much confidence that at the end of the day, we are all the same.
To meet naïve young fools with an impossible vision and incredible courage in their eyes, willing to change the world against all odds…. that fearlessness of youth I so adore.
And finally, ability to convince the “rich” to let me distribute their wealth to not so rich responsibly!
Q. Has your learning at IIFM helped in shaping how you approach your professional roles?
A. I did nothing much at IIFM except experiencing life and simply putting that experience to work. Education for me at IIFM was that experience of immersion in the journey called life with my very talented classmates. Watching nature up and close and seeing human strength and frailties exposed… aspirations and exhaustion.
Jayesh was my childhood friend so him being around gave feeling of being at home, Pranay was my alter ego – He was everything I wanted to be but could never be … talent, looks, he had everything… so inspiring to be with him 24X7, Ram Narayan and Ajay Sharma – Silver Fir Folks which were family, Ram was my partner in crime .. We were non-drinker non-smokers and binged on Bhang on Holi to test how it feels… Ajay was the professor whose restrained wisdom was so inspiring… Paddy or Pradeep the fun quotient the partner with whom we set up Grazing Cows Band J and Anish Kumar… the man with a memory and an accent that came close to the voice of America. Super talented ladies Ratna and Varsha, both had a major influence in my growing up both at the Institute and outside it. Paul with whom I have spent incredible time and moment as Board Member, Friend, Batchmate, and incredible folks like Rajesh Gupta, Manish Verma, Bhanu, Domo Diyum, Manish Shankar, Kanchan every one of them simply amazing. I do not think I ever acknowledged but the 22 months of togetherness played a very important role in what I am today. This is an acknowledgment to each one of the 23 from PFM 92-94.
Each one of them played an important role in making me reach where I am today, some initially and some now but it remains an amazing partnership that continues running very successfully.
Q. Who (or what) are the biggest influences or drivers in your careers? What would be your advice to freshers and IIFM graduates who are looking to choose similar sectors/roles.
A. Anil Gupta, Prof at IIMA.. Both positive and negative learnings, he made my life miserable but almost made me a human being from a gunk. Vijay Mahajan who has played a very critical role in my evolution as an entrepreneur. Mohan Das Pai lately with his very helpful outreach. Manoj Nambiar and Anurag Agrawal two of my colleagues at Aavishkaar have also influenced me a lot.
To Fresher’s at IIFM – IIFM is an experience. Be irresponsible when you are in private and be very responsible when you are in public … I was silly and stupid but was never insincere when it came to work…Mess Secretary or Assignment… When at work give 300% and when you are doing badmashi give the same… Never be halfhearted in what you do.
Q. What are your favorite memories during your IIFM days?
A. Trying to impress Swati by walking on the tank parapet and sitting with my feet dangling out and just as she walks under the tank, my slipper ditches me and goes floating down and smashes on the ground in front of her!! She looked up and shouted, “Are you an idiot with a death wish” sufficient to say not the impression I intended to made.
Q. In hindsight, what was the biggest contribution (courses, faculty, library, friends, alumni.. Anything else!!) or take away from IIFM that you think played a critical role in shaping you as an individual or professional?
A. Building for getting me in, Batch mates for grooming me and challenging me and showing me the path forward, Swati for being a life partner.
Everything else was important but not critical.
Q. The best buddies / seniors /faculty at IIFM? Some memorable tidbits that you like to share?
A. Seniors Suvendu Pati (General Manager RBI) remained my closest senior buddy, Silver Fir, also my guide at BILT… Only person who knew that a big mouse chew off my entire toe in his forest bungalow with blood splattered all over, Nikesh Sinha (Formerly Axis Bank now CEO of ASHV with Aavishkaar Group) and everyone from my batch with minor bias toward Jayesh and Pranay!!
Q. As an alumni, what’s your advice to freshers or those are joining IIFM to get best out of the 2 years there?
A. Be curious is the most important message. Being Curious is not easy, learn how to be curious, will take you very far in life.
Experience your surrounding and the journey at IIFM, it is not the skills but the life lessons you gain from.
Engage with seniors, juniors, alumni, faculties, and the world at large…
Remember Life is a journey, not a race… no one wins it so enjoy it … focus on what you cherish, give 300% commitment to whatever you cherish, do not be halfhearted in anything. Skills are important but they do not make or break your future.
Q. What is your typical day at the office?
A. I am mostly up in the air or driving – office is rare- but when in office then it is mostly meeting various leaders and some young entrepreneurs.
Q. And how about weekends, Hobbies, Family, and anything else you want to add
A. I work out, love to play, watch most games on TV, try to cook as much as I can, so during pandemic have cooked almost on all weekends!
Q. Favorite Books, movies, authors
A. Ramayana and Mahabharat are my best books. I can read them 1000 times and yet never get over them as there is much to absorb, soak and learn there.
The authors are Ved Vyas who wrote Mahabharat and Valmiki and Tulsidas for Ramayana.
Q. IIFM is driven by alumni’s passion and commitments towards its goal. How would you like to contribute to IIFM or IIFM alumni, students?
A. Time is short – will do anything if asked so feel free.
Q. What do you think is different at IIFM now vs when you studied there? What do you think is a positive change and what is not?
A. Good connectivity, the number of students and growing ambition are all positive changes.
Q. Any suggestions on who you want to get profiled/interviewed here?
A. Varsha Mehta, Pranay Lal, Anish Kumar, Suvendu Pati & Ajay Rai.