Traditional venture capital firms are increasing their investment into social and environmental businesses in India.

In the 20-company portfolio of Nexus Venture East, a $320 million venture capital (VC) fund, three businesses stand out. There's Suminter India Organics, which does contract farming for organic produce; D.light Design, which provides solar lighting solutions; and Sohan Lal Commodity Management, which provides grain warehousing facilities in small towns and villages in 12 states.

Nexus refers to them as 'impact investments' - businesses where the pursuit of profits is accompanied by the premise of social good.

In the four years it has been in India, Nexus has invested $10 million in social businesses. However, in the next six months alone, it expects to match that amount. Says Sandeep Singhal, co-founder, Nexus: "Businesses are targeting the bottom of the pyramid because people have a genuine ability to pay. So, we are looking at a few good deals in this space."