The covid-19 pandemic and the subsequent lockdown has wide socio-economic implications, particularly in low income countries. The dismal economic conditions make it impossible for the governments to tackle the situation on their own. Private capital has to step in to fill the financial and administrative gaps in these unprecedented times.

Impact investors can ‘step up to this challenge’ and lead the path to recovery and subsequently build a more resilient system across the globe.

At a global market size of USD 715 billion (GIIN, 2020) the global impact investing community holds the potential to respond to the most vulnerable to the impact of the pandemic. It is time for Impact investing to become ‘mainstream’ in the post-Covid 19 era. Built on a new and revised philosophy of seeking resilience with returns impact investing could drive economic growth through entrepreneurship and innovation.

However, questions around liquidity, capital flow, market stability continue to create doubts about the potential of the industry. As per an IIC survey on ‘Impact of Covid-19’ (respondents include IIC members, leading impact investors, who collectively support 600 Indian impact enterprises), the overall funding outlook for the industry looks grim with negative implications on impact capital flow in the long-term. In fact, it is anticipated that investors/ international LPs might renege on commitments.