India Education Outcomes Fund: A Case Study
By Archana Mehendale and Ajay Singh
This case study showcases the design and the process of establishing a catalytic platform, the India Education Outcomes Fund (IEOF) of Social Finance India (SF-IND), aimed at providing sustainable and innovative funding at scale to deliver educational outcomes. The IEOF is still under development but readers of this case study can learn about what is involved in setting up such a platform by understanding the issues encountered, choices made and implementation mechanisms being considered for adoption in the marketplace.
Social Finance India (SF-IND) was established in 2018 as a nonprofit organization dedicated to harnessing capital to address social challenges, with the financial support of Tata Trusts and the Global Steering Group for Impact Investment (GSG). It is part of the Social Finance Global Network (SFGN). SF-IND set up the IEOF with an aim to create transformational impact in Indian education through funding USD 1 billion of outcomes-focused activities by 2030. As far as the status of education is concerned, India has achieved access and participation of children in education and the major challenges are those of learning crisis and equity concerns.
The IEOF platform differs from existing traditional funding mechanisms of education as well as the typical impact bond structures on education. It is designed to address and overcome the problems and limitations currently experienced in these funding arrangements. As a marketplace, it is intended to create impact at scale and address the limitations of individual, bespoke development impact bonds (DIB) and structuring processes. As a platform, IEOF works towards bringing efficiencies and thereby lowering administrative costs.