The Economic Times has revealed its 12th annual Startup Awards nominees for the Social Enterprise category. These startups are recognized for balancing financial profitability with social or environmental change. While these firms are private and not listed on stock exchanges, their growth and funding models offer important insights into the evolving landscape of Indian impact investing.
The Economic Times has announced the nominees for the 'Social Enterprise' category at its 12th annual Startup Awards, drawing attention to businesses that pursue a 'double bottomline' model. This approach seeks to generate financial profit while solving specific social or environmental challenges in India. The nominees include a mix of companies across diverse sectors such as healthcare, agriculture, and waste management, each backed by private venture capital.
The Nominees and Business Models
The nominated companies are actively working in sectors where infrastructure or formal services have been historically difficult to reach. Padcare Labs, for instance, focuses on sanitary waste recycling, addressing environmental and public health concerns. Cornext targets the agricultural sector by providing silage baler machines to solve fodder shortages for dairy farmers.
Karo Sambhav operates in the circular economy by building networks to manage electronic and plastic waste, helping brands meet their Extended Producer Responsibility (EPR) mandates. Varaha works with smallholder farmers to generate carbon credits through sustainable farming, which are then sold to global corporations. CureBay operates a hybrid healthcare network, setting up tech-enabled eClinics to provide medical consultations and diagnostics in underserved rural and tribal regions across Odisha, Jharkhand, and Chhattisgarh.
Why This Matters for Investors
It is important for investors to note that none of these companies are publicly traded on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). Consequently, they do not have a public share price, and their financial records are not subject to the same regulatory disclosure requirements as listed companies.
However, these startups are relevant to the broader investment ecosystem because they are backed by prominent venture capital and private equity firms. For example, investors like Omnivore, WestBridge Capital, and British International Investment have provided capital to these entities. The recent funding activity—such as Karo Sambhav raising ₹56 crore in June 2026 and Padcare Labs securing $3 million in February 2026—suggests that capital is flowing into impact-focused business models that can scale.
Risks and Monitorables
As these businesses are in the private venture stage, they carry different risks compared to established listed companies. The primary risk is liquidity; private equity investments are often illiquid, meaning investors cannot exit easily. Furthermore, these companies face significant execution risks as they attempt to balance profit margins with their social impact goals. If operating costs rise or demand does not scale as expected, the financial viability of these startups can be tested.
Investors tracking the startup ecosystem should monitor the future funding rounds, cash burn rates, and the ability of these companies to achieve self-sustaining profitability. Additionally, regulatory changes—such as shifts in EPR guidelines that impact companies like Karo Sambhav—are key factors that can alter their operational costs and growth trajectory.