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In India, a new approach to finance has been transforming shelter options for low-income households and supporting community-led development over recent decades. This paper examines the financial architecture developed to support hundreds of community-driven efforts by grassroots groups working in alliance with the Mumbai-based NGO SPARC. Much has been written about this Alliance’s work, but its financial architecture has had little attention. This paper seeks to explain how grants given for grassroots community development in urban areas can produce new forms of entrepreneurial behaviour among the urban poor, showing how they can design and execute large projects with the expertise gained from more modest efforts. It also shows how this Alliance has managed, invested and revolved these grants and other sources of funding, including its own savings, to leverage resources and opportunities for inclusive city development.

From taking money to making money: SPARC, NSDF and Mahila Milan transform low-income shelter options in India