In 2017, Smita Ram and her co-founder Ram made a pivotal decision – to shut down Rang De. The decision wasn’t taken lightly; it was a response to regulatory changes by the RBI regarding P2P lending. These changes required Rang De to apply for an NBFC P2P license, a process that demanded substantial financial resources, including a minimum Net Owned Funds of ₹2 crores.
Smita Ram and Ram were undeterred by the challenges ahead. They were willing to invest their life’s savings into their life’s work, but even that wasn’t enough. The regulatory requirements loomed large, and they found themselves falling short. They could have pursued private equity, but they were wary of how it might impact their mission. They were determined not to compromise on their core mission of making credit affordable and accessible.
Facing a dilemma, Smita Ram and Ram were in search of “capital with a conscience.” They wanted investors who shared their commitment to social impact and were aligned with their mission. With their backs against the wall, they reached out to their social investors, sharing their predicament and uncertainty about the future.
The response they received was overwhelming. Within days, 23 social investors expressed their interest in becoming equity investors for Rang De. Their response was simple yet profound – “You define the terms, we will write the cheque.” These investors believed in the mission of Rang De and were willing to support it financially without compromising its core values.
With the support of these aligned investors, Smita Ram and Ram were finally able to file for the NBFC P2P license with the RBI. This marked a significant turning point in their journey, reaffirming their commitment to revolutionizing credit access in India.
Over the past four years, Rang De has continued to grow, thanks to the support of its angel investors. They have provided credit to rural entrepreneurs at just 6-8% p.a., disbursed more than 70 crores, and welcomed over 9400 individuals as social investors. Their achievements have been recognized through their graduation from the Google Accelerator Program.
But for Smita Ram and her team, this is just the beginning. Their journey towards enabling last-mile financial inclusion in India is far from over. They are inviting individuals who believe in their mission to join them as angel investors in Rang De. Through a Typeform form link shared in her post, Smita Ram invites her network to become fellow travelers on their incredible journey.
Smita Ram’s story is a testament to the power of resilience, purpose, and community support. Despite facing seemingly insurmountable challenges, she and her team have persevered, staying true to their mission and values. Their journey serves as an inspiration to all aspiring entrepreneurs and changemakers, reminding us that with determination and a clear sense of purpose, anything is possible. Join Smita Ram and Rang De as they continue their mission to make a meaningful impact on the lives of millions across India.
