Nepal's Dolma hits second close on Fund II

DFC said in a disclosure that the fund had USD 13m of available capacity before reaching its hard cap of USD 75m. A final close is expected by mid-2022. A first close of USD 40m came in May last year with contributions from fellow development finance institutions (DFIs) Netherlands-based FMO, UK-based CDC Group, Sweden’s Swedfund, and the International Finance Corporation (IFC).

Dolma’s first fund closed on USD 26m in 2015 and the firm then raised a USD 37m top-up vehicle in 2018. DFC described Dolma as a pioneer of institutional direct foreign investment in Nepal with an environmental and social lens.

“DFC is thrilled to support Dolma Impact Fund II as it works to inject capital into the growing healthcare and renewable energy sectors in Nepal, while empowering and unlocking the economic potential of women as a 2X-qualifying fund,” Lauren Cochran, vice president of equity and investment funds at DFC, said, referencing the 2X Challenge, an initiative to promote DFI investment in women.

“Dolma’s important work brings to life several of DFC’s key priorities, including tackling the climate crisis, promoting gender equity in financing, and strengthening health resilience in Nepal.”

Dolma claims to be the first international PE fund purely focused on Nepal. Its core strategy includes a focus on balancing the country's trade deficit with India by targeting companies that substitute imports while also empowering the local population.

The firm is led by CEO Tim Gocher, a private equity professional with a background in renewable energy and technology who previously held roles at Deloitte and J.P. Morgan. It typically makes investments of $2-5 million across the infrastructure, consumer, and industrial sectors.

Fund II will target primarily renewable energy, healthcare, education, and technology companies. The plan is to address capacity constraints in healthcare and enable digital solutions to scale rapidly both during and following the pandemic.

The only investment to date is third-party logistics platform Upaya City Cargo. Upaya connects small and medium-sized businesses and individuals with around 1,200 pickup truck and two-wheeler drivers across three cities in Nepal. It has 5,700 clients.

Nepal has one of the lowest GDP per capita in Asia and a population of nearly 30 million. In 2015, the government set the ambition of achieving middle income status through the implementation of the UN’s sustainable development goals and it has since achieved annual GDP growth rates of between 6.7% and 9.0%.

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• Topics
• South Asia
• Fundraising
• Growth
• Venture
• Infrastructure
• Nepal
• International Development Finance Corporation (DFC)
• development finance institution
• Impact investment