Feature

30 Years of Bold Bets: How Desh & Jaishree Deshpande Are Powering Rural Innovation in India

Deshpande Foundation’s journey of redefining philanthropy by turning local ideas into scalable solutions

GivingPi Editorial Team

12th March 2025

“Jaishree and I travel together, make decisions together, and don’t move forward on anything unless we’re on the same page. Philanthropy is an integral part of our lives now, and we’re continuously working to create ecosystems where people can thrive.”

Gururaj ‘Desh’ Deshpande grew up in India in the 1960s and 70s, where giving wasn’t about grand gestures—it was about small acts of kindness. “Most families were just trying to survive. Giving back meant feeding a child once a week, maybe a little more if you could afford it,” he recalled.

That memory of resourcefulness stayed with him, even as he built successful tech companies in the U.S. But success brought bigger questions. “What if philanthropy could be more than charity? What if it could build ecosystems of opportunity?”

As a tech entrepreneur, Desh had spent his career turning ideas into scalable impact—not just inventing solutions but ensuring they reached millions. Could the same principles that fueled his business successes drive large-scale social change?

For Jaishree, his wife and partner in this mission, the vision was deeply personal. Having navigated male-dominated industries, she knew that the real barrier wasn’t talent—it was access. In the late 1990s, she championed the first-ever women’s hostels at IIT Madras, recognizing that sometimes, inclusion isn’t about ability—it’s about ensuring the infrastructure exists to support ambition.

What started as a personal effort soon turned into a shared mission. “Philanthropy isn’t just about giving—it’s about creating pathways for people to uplift themselves,” said Jaishree. Thus, three decades ago, the Deshpande Foundation was born—not to distribute aid, but to build sustainable solutions that empower communities.

From $8 to Global Impact

Like many Indian students in the 1960s, Desh arrived in the U.S. with just a few dollars in his pocket. He earned a PhD in electrical engineering, He worked for Motorola for 8 years and launched his first company. But the early entrepreneurial career was anything but smooth. After a difference of opinion with his co-founder, he left the company leaving him unemployed. “We were in a faraway land, with no family to support us. But it is during such times that you realize your resilience as partners,” Jaishree recalled.

Undeterred, Desh co-founded Cascade Communications in 1990, a company that revolutionized internet infrastructure. As the World Wide Web took off, Cascade’s technology became the backbone of internet providers, fueling the digital age. His next venture, Sycamore Networks, was another major success.

At the time, Massachusetts had no real startup ecosystem. “There were barely five or six startups,” Desh recalled. Instead of just building another company, he saw an opportunity to foster a culture of innovation itself.

After selling Cascade, he spent a year mentoring over 100 founders, embedding a values-driven leadership approach that rippled across industries. Then came a turning point when he and Jaishree asked themselves a new question: “What if we could do this for a larger population—not just in business, but in the social sector?”

It wasn’t just a passing thought. In 2000, that question became the blueprint for the Deshpande Foundation—a catalyst for large-scale social innovation, applying entrepreneurial principles to philanthropy.

A hub of learning and innovation: The Deshpande Skilling Center in Hubballi

“Dignified giving means people aren’t just recipients of aid—they’re active participants in shaping solutions. Philanthropy isn’t about offering relief; it’s about leveling the playing field and creating systems that empower future generations to thrive.”

- Jaishree Deshpande

Deshpande Foundation's agricultural initiatives aim to address farmers' essential needs and drive their economic prosperity

Bridging the MIT Model to Social Impact

The Foundation’s early experiments in the U.S. focused on testing and refining ideas for scalable impact. A pivotal moment came in 2002, when Desh donated $20 million to establish the Deshpande Center for Technological Innovation at Massachusetts Institute of Technology (MIT).

“The idea was simple: instead of an innovator developing a solution and then seeking opportunities, connect them to real problems during the innovation process. This way, they’re more likely to create ideas that are relevant, expanding the pool of viable solutions,” Desh explained.

The MIT model thrived—leveraging academic excellence, corporate networks, and venture capital to turn cutting-edge research into commercial breakthroughs. This convergence of intellectual and financial resources created an ideal platform for entrepreneurial success. The model expanded across USA through the I-Corps program through National Science Foundation. Now it is being replicated in India through the Gopal Krishnan Deshpande Center at IIT Madras throughout India.

As the Foundation evolved, Desh and Jaishree turned their focus back to India—specifically, their birthplace of Hubli-Dharwad, Karnataka. The contrast between MIT’s structured innovation ecosystem and India’s fragmented opportunities was stark.

Could the same principles that fueled tech entrepreneurship in the U.S. be adapted to drive social innovation in rural India?

Deshpande Startups, India's largest technology business incubator, is driving tech-driven entrepreneurship in rural and semi-urban India

A New Model for Giving in India

By 2005, the Deshpandes weren’t looking to import a Silicon Valley model to India. Instead, they asked a bold question: Could innovation thrive in rural India—without venture capital, established startup networks, or urban infrastructure?

Their answer came in 2007 with the launch of Deshpande Foundation India in Hubli-Dharwad. Unlike traditional philanthropy, their approach wasn’t about handouts—it was about building self-sustaining ecosystems where people became active participants in their own progress.

Inspired by the MIT model, which had shown that structured support could accelerate entrepreneurship, they understood that success in India wasn’t just about funding—it was about removing systemic barriers and creating access.

This led to the creation of the Innovation Sandbox—a grassroots lab where local entrepreneurs, farmers, and youth could develop, test, and scale solutions tailored to their realities. Over two decades, it has worked through local programs, NGO grants, and partnerships to drive change from the ground up.

“Sustainability first, scalability next” became their guiding principle. Every intervention—whether in agriculture, skilling, or micro-entrepreneurship—was designed to be impactful, inclusive, and cost-effective from the start.Rather than imposing solutions from the top down, they identified and backed local leaders, providing them with seed funding, technology access, and market linkages—the same structured support tech startups receive in venture capital ecosystems, but applied to rural problem-solvers.

“For communities, relevance + innovation = impact,” said Desh. But innovation, he emphasized, didn’t have to be earth-shattering—it just needed to meet local needs in a sustainable way.

The Sandbox model proved that transformative solutions don’t come from boardrooms—they emerge from communities solving their own challenges. For Desh and Jaishree, social innovation is the real game-changer—not just for the resourceful, but for communities on the margins of opportunity. Today, the Deshpande Foundation spans agriculture, skilling, and startups, ensuring its programs don’t just offer short-term fixes, but create self-sustaining systems that empower individuals to break cycles of hardship.

Agriculture & Water Security: Revitalizing Farming Communities

For smallholder farmers, water security is the difference between survival and prosperity. The Deshpande Foundation’s Farm Pond Program has transformed rural agriculture by constructing 12,000+ farm ponds, ensuring year-round irrigation and higher yields. As the implementing agency for the Better Cotton Initiative (BCI) in Karnataka and Telangana, the Foundation is also driving sustainable cotton farming, impacting over 1 lakh farmers.

For Manikanta Mandal, a young farmer in Karnataka, this shift was life changing. Years of drought had left his family struggling on a 2-acre plot, earning just INR 30,000 a year from sorghum farming. With no irrigation, his livelihood was at the mercy of rainfall. That changed in 2023 when he joined the Farm Pond Program. With a loan through the Joint Liability Group (JLG) model from SBI and technical support from the Foundation, he built a pond to store rainwater. The results were immediate—he diversified from low-yield sorghum to high-value cotton, coconuts, and vegetables. He even introduced fish farming for an additional income stream. Within a year, his income soared to INR 2,30,000—a sevenfold increase. Inspired by his success, 30 other farmers in his village built farm ponds, driving a community-wide shift toward sustainable agriculture.

Skilling the Next Generation: Creating Pathways to Opportunity

Without access to marketable skills, young people in rural India remain trapped in low-income cycles. Through programs like SkillPlus and Skill in Village (SiV), the Foundation has trained 20,000+ students, equipping them for meaningful employment.

For Bhavya, 11, confidence was the biggest barrier. She hesitated to speak in class, afraid of making mistakes. Enrolling in SiV, she learned that failure was part of learning. Within five months, she went from shy to standing on stage, speaking confidently in English. “If a foreigner ever got lost in my village, I’d give them directions in English!” she joked.

For Summaiya Naaz from Mudhol, skilling meant financial independence. With her father’s farming income barely sustaining the family, she knew she had to step up. Facing resistance at home, she joined Deshpande Skilling, gaining job-readiness skills, English proficiency, and critical thinking training. Within two months, she landed a job in Bengaluru, breaking free from financial hardship and supporting her family—all while building her career.

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Deshpande Foundation empowers elementary and middle school students, as well as rural and semi-urban graduates, through skill development programs

Fostering Entrepreneurship: Unlocking Innovation Beyond Metro Cities

The idea that high-impact entrepreneurship is limited to big cities is outdated. Deshpande Startups, launched in 2016 and recognized as a Technology Business Incubator by the Government of India, has proven that innovation can thrive in rural and semi-urban India. Based in Hubballi, Karnataka, it has supported over 440 startups, secured 105+ patents, and facilitated ₹120+ crores in external investments—demonstrating that game-changing solutions don’t have to emerge from metro hubs alone.

What makes Deshpande Startups different? Unlike traditional incubators that focus on urban founders, it backs problem-first entrepreneurs tackling real-world challenges in Tier II and III cities. Startups receive support at every stage—from ideation to scaling—ensuring their solutions are impact-driven and commercially viable.

At the heart of this ecosystem is Infinity Studio, a cutting-edge innovation lab created in partnership with IESA, the Government of Karnataka, and the Department of Science & Technology (DST) through Nidhi PRAYAS. It provides world-class prototyping, testing, and technical expertise, enabling entrepreneurs to move quickly from concept to reality.

By championing decentralized, problem-first entrepreneurship, Deshpande Startups proves that disruptive ideas don’t just come from boardrooms—they emerge from communities solving their own challenges. With the right support, these ideas can scale—turning rural ingenuity into globally relevant solutions.

A Legacy of Dignified Giving

Over the years, Desh and Jaishree have uncovered powerful lessons in philanthropy, entrepreneurship, and sustainable development that have shaped their approach of dignified giving and long-term empowerment.

Empowerment Over Handouts: “Philanthropy must move beyond charity. Dignified giving shifts the focus from aid to empowerment, ensuring communities retain their agency and independence,” said Desh. Both he and Jaishree believe that true impact comes from investing in potential, not pity—a principle that runs through every aspect of their work.

Financial Contribution Creates Ownership: One of the Foundation’s most valuable insights has been the power of financial participation. When individuals contribute—even in small amounts—they become invested in the process. “When people pay for services, even a fraction of the cost, they demand better quality and become active stakeholders,” Desh explained.

This principle shaped two major interventions:

1. Skilling Programs in Public Education – Instead of offering free training, they introduced cost-sharing models where students or institutions made small contributions. The result? Higher engagement and stronger learning outcomes.

2. Water Security Through Farm Ponds – Initially, the Foundation built 150 ponds for free to showcase the impact. Once farmers saw the benefits, they transitioned to a co-investment model. “Even though each pond costs around INR 1,00,000, many farmers were willing to pay because they saw how it transformed their livelihoods,” Desh shared. Over 11 years, the initiative scaled significantly, with the Foundation’s financial contribution gradually reducing to just 10%.

Helping Nonprofits Overcome the ‘Hand-to-Mouth’ Challenge: Unlike for-profit businesses that are forced to innovate to stay competitive, most nonprofits operate on tight budgets, leaving little room for strategic planning or R&D. “This lack of resources often keeps them stuck in survival mode, preventing real evolution,” Jaishree noted. To counter this, the Foundation took a dual approach to systemic change: helping successful programs scale as government-backed initiatives and integrating impact-driven programs into the free-market economy for long-term sustainability. “In some cases, a hybrid model is needed—blending philanthropy, market forces, and government support until an intervention reaches self-sufficiency,” Desh explained.

Social Innovation Takes Time: Unlike tech startups that can scale rapidly, social change demands patience and long-term commitment. “In the social sector, affordability is low, and even small investments are critical for survival,” Desh reflected. “Real transformation takes time, adaptability, and staying the course.”

These lessons have reinforced a simple but powerful truth: when philanthropy is rooted in dignity and shared ownership, it creates lasting impact without fostering dependency.

Scaling Impact with Purpose

Nearly three decades into their philanthropic journey, the Deshpandes’ focus remains unchanged: solving problems at scale with dignity and sustainability.

Looking ahead to India’s centenary in 2047, Desh sees a clear call to action for funders. “Mediocrity in social impact is unacceptable. Philanthropists must set high standards to ensure resources drive tangible, transformative outcomes,” he reflected.

For Jaishree, the future of giving lies in shifting power. “Philanthropy should not be about generosity alone, but about creating opportunities that break cycles of dependence. The real measure of success is whether communities can sustain solutions on their own.”

Their legacy offers a roadmap for the next generation of funders, particularly the Indian diaspora. Instead of short-term aid, they urge new philanthropists to back models that empower—whether by supporting grassroots leaders, funding scalable enterprises, or investing in research that translates into real-world impact.

“Innovation is key, but only if it meets real needs. That means collaborating with communities, investing in long-term solutions, and leveraging technology where appropriate,” Desh emphasized.

As they look ahead, their message is clear: lasting impact isn’t just about doing more—it’s about doing better. And for the Deshpandes, that means continuing to build ecosystems where solutions don’t just scale but sustain themselves.