Bridging the Capital Gap: Priya Thachadi on Redesigning Finance for Impact Enterprises

At the 2025 National Social Enterprise Conference, Priya Thachadi, Co-founder and CEO of Villgro Philippines, delivered a bold and urgent message: the social enterprise financing ecosystem is failing the very entrepreneurs it claims to serve.

Drawing from her nearly decade-long experience in the Philippines, Priya outlined the persistent barriers that early- to growth-stage social enterprises face—chief among them, the lack of appropriate and accessible capital. While global impact investment has grown, she noted that most capital flows to microfinance or late-stage enterprises. The result? A continued neglect of startups and enterprises operating in the so-called “missing middle”—those needing between ₱250,000 to ₱15 million in financing.

“We’re all asking entrepreneurs to get better, be more investable, and formalize. But the truth is—the capital hasn’t evolved to meet them where they are,” she said.

Villgro Philippines, under Priya’s leadership, addresses this mismatch by focusing on:

• Early-stage, impact-first enterprises—especially those in climate, housing, and health sectors.
• Women-led businesses, backed by a strong gender lens from day one.
• Blended finance solutions that combine grants, loans, and equity to bridge risk gaps and unlock growth potential.

She also highlighted the creation of the Impact Pioneers Network, a co-investment facility of 12 active partners including microfinance institutions, foundations, and individual investors. Together, they pool resources and share risks to support startups with tailored, flexible financing—especially those who can’t yet meet conventional requirements.

“There’s enough liquidity in the Philippines. The issue is de-risking and channeling capital to where it’s most needed—and that requires real collaboration,” Priya stressed.

Her presentation urged stakeholders to:

• Map the financing ecosystem more clearly by enterprise stage and need.
• Co-create products with entrepreneurs, instead of forcing them to adapt to rigid models.
• Increase transparency and learning within the ecosystem by sharing both successes and failures.

Priya ended with a call for moral accountability: “If we want systemic change, we must do more than talk—we must actually invest. The money is here. The entrepreneurs are here. Now, we need to meet each other halfway.”