Careers in finance usually deal with helping the wealthy invest their money for even better returns. But Vidya Shah, former Chief Financial Officer of the Edelweiss Group is helping the affluent give away that wealth. As Chief Executive Officer of EdelGive Foundation, she helps HNIs scope out non-profits to identify worthy causes that people can donate to without worries.
Up the ladder Her first job, after graduating from the Indian Institute of Management, Ahmedabad, was with ICICI. “What was remarkable was that even a rookie like me could present a proposal at the directors’ committee meeting and see the deliberations,” she recalls.
Her next job was with Peregrine, a Hong Kong-based investment firm. When the Asian crisis unfolded in 1998, the company closed down. “Going through a lay-off, being out of job for six months and getting back was all an experience in itself,” she says.
She moved to NM Rothschild, a UK-based advisory firm and headed the telecom advisory practise. “In 2000, I was travelling like crazy and like all young mothers, I was wondering if I was giving enough time to my son. I was also expecting my second child and wanted a job where I could work from my time,” she says.
An interesting offer came up, close to home. “My husband Rashesh and the other co-founder Venkat Ramaswamy asked me to join Edelweiss Group. The company was very small and cosy with 10 people and I was asked to do human resources, marketing and CFO roles,” she says.
Balancing work and family was a challenge, but quitting was not an option. “I went to work after three months of having a child, both times.” She feels lucky to have had good support system from the extended family and observes that women have to make a lot of compromises and should try to accept their choices without guilt.
Zeroing in on non-profits Shah continued as CFO of the Edelweiss Group, besides leading the human resources and administration functions till 2005. When the company was close to going public, she stepped down and set up EdelGive Foundation, the philanthropy arm of Edelweiss Group.
“The ethos of giving always existed in the company and we used to give small amounts of money each year,” she says. Shah travelled and spent time staying with the non-profits they support to understand their issues. The EdelGive Foundation supports non-profit organisations working for education, livelihood and women’s empowerment. It has committed over ₹28 crore so far to 50 organisations.
What does she think of the negativity non-profits face? “There is certainly a slice of non-profits which is truly outstanding — with no parallels to such organisations anywhere in the world. People abroad are amazed by the richness of our non-profits,” she says. Her approach, which has worked out well, is to figure out the objective to be achieved and then spend time in finding an organisation that has integrity and professionalism.
“Non-profits aren’t fully equipped to face the challenges — of how to be focussed on creating and evaluating the impact of their work; how to scale the organisation and how to raise funds. There is certainly a lot of passion to make a change,” she notes with optimism.
Enriched by giving She says that established businesses and HNIs who have trusts, want to find ways to give strategically. “For example, a leading health care company asks if it should do a health camp or something more. They want to position themselves as a pharma company with a heart and soul,” she says. Likewise, she finds that new age entrepreneurs are very clear that they want to give and be involved.
Another way to tackle social issues is through social enterprises. Instead of the “band aid solutions” that many NGOs offer, these companies offer “market solutions that are long term and systemic at price points that are affordable to the poor”.
She gives the example of how safe drinking water is provided in some Mumbai slums through water kiosks. “The community pays one rupee per litre of water. They are very protective of the unit and have appointed guards and ensure there is no pilferage,” she says.
Richness of music and art On the personal front, Shah is learning Hindustani music. She also reads a lot of books and has been practising yoga for the last 13 years. “My third hobby is running half marathons,” she says.
Shah also buys the art work of young upcoming artists. “Not as an investment but I enjoy the colour, the style and like what they are saying,” she explains.
She also buys “one or two pieces” of traditional jewellery — the more intricate filigree and south Indian temple jewellery. “It is generational. My mother-in-law gifted me some traditional Gujarati jewellery. The bangle is too small. I apply soap and somehow get it on but will never ever change it,” she says emphatically.
Given that both Vidya and her husband (Rashesh) are in high finance, how do they invest? In conventional assets, it turns out!
“Most of our investments are in mutual funds — equity and debt. We don’t believe in timing the market but ensure we don’t get stuck with investments that don’t grow,” she elaborates.