Initiated almost four decades ago in the form of an 11-bed clinic in Madurai, Aravind Eye Care System with its large network of hospitals, vision centres and community outreach programs is now recognized in India and beyond as a major actor of health care. This paper upholds the view that Aravind’s innovative characteristics call for the creation of a specific category: transformational entrepreneurship. It first clarifies what may be called the ‘Aravind paradox’: Aravind achieves compassion through Taylorism, providing free eye care to poor patients while expanding its robust entrepreneurial model. It then analyses the social, cultural and policy implications of Aravind’s success, notably from the perspective of its contribution to the common good. Finally, the paper identifies the definitional components of transformational entrepreneurship.