Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

CloudFactory raises $65 million, providing a partial exit for Dolma Impact



ImpactAlpha, November 26 – It took four years for Dolma Impact Fund to raise its $37 million first fund. It only took two years to achieve its first exit.

CloudFactory, a U.K.-based startup that hires Nepalese workers to “train” data for artificial intelligence applications for large companies, raised $65 million from FTV Capital and Weatherford Capital. Dolma invested in CloudFactory’s $7.3 million round in 2017 and earned a 56% internal rate of return, Dolma’s Tim Gocher told ImpactAlpha.

Nepal’s market

Private investors have been wary of Nepal’s history of political turbulence. Several years of stability, coupled with the global tech boom, have spurred entrepreneurship and investment. The land-locked South Asian country ranks among the poorest in the world; average income is less than $1,000 per year.

“CloudFactory was a small company when we invested in 2017. Now it has global venture capital firms coming in,” Gocher says. “The poorest country in South Asia’s workforce enabled that.”

Data for impact

CloudFactory is among a raft of data companies fueling artificial intelligence and machine learning with an army of human workers to cull and annotate large volumes of data.

It differentiates itself with a mission to create “meaningful” and well-paying jobs for emerging market workers (see, “Samasource raises $14.8 million to connect tech giants with Africa’s data talent”).

Scaling with integrity

Communicating the link between impact mission and business success is crucial as companies grow and secure non-impact funding. “Impact capital has to come into contact with mainstream capital in order for social enterprises to scale,” Gocher says. “We have to be able to defend our impact positions in commercial terms as that happens.” (See, “Managing mission drift and driving impact in emerging markets“.)

You might also like...