EnglishHelper: funding options for social enterprises

Abstract

Learning outcomes This case aims to introduce students to the social sector financing (internal and external) landscape, and its nuances. It specifically provides material to enable critical evaluation and decision-making around financing a for-profit social enterprise and its associated challenges. Case overview/synopsis The case highlights the fundraising options available to a social enterprise in an emerging economy like India. EnglishHelper Technologies Private Ltd. (EH) commenced operations in 2011 as a subsidiary of its parent Boston-based company, to provide technology-based learning solutions primarily to the underserved segments of the country’s population. Sanjay Gupta, co-founder and CEO, EH Inc., wanted to explore funding options suitable for the company’s next growth stage. The existing funding sources of equity from its parent company, grants and revenues (mainly from product sales to government schools) had worked well for EH in the initial years of its growth. But its financial performance was being impacted, and, additionally, further scaling up would require sources that could give a much larger quantum of funds and add support to EH’s operations. EH would also need to revisit its revenue model to strengthen its financial sustainability, by drawing lessons from the other prevalent ones in the ed-tech sector and make it more effective. The case encourages students to assess the various funding alternatives, internal and external, for a social sector private company with a for-profit model like EH, to enable it to achieve its scaling-up plans while serving its social mission. Complexity academic level The case is relevant for both undergraduate and postgraduate students and can be used in business administration programs. Subject code CSS 1: Accounting and finance. Supplementary materials Teaching notes are available for educators only.