Dealflow | January 3, 2023

Dolma Impact Fund II raises nearly $72 million for sustainable development in Nepal

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, January 3 — Dolma Fund Management has raised nearly $72 million for its second Dolma Impact Fund. The private equity fund received commitments from global development finance institutions, such as British International Investment, FMO, Swedfund, the International Finance Corp. and the U.S. International Development Finance Corp. The Japan International Cooperation Agency joined with a late $10 million allocation.

Dolma Impact Fund II will invest through a gender lens in clean energy, e-commerce and e-logistics, health tech, edtech and fintech companies and projects in Nepal. Dolma says it aims to boost inclusive and sustainable economic growth in Nepal and catalyze more private equity investments.

Dolma Impact Fund launched its first private equity and impact investing fund in 2014, about a year before the Gorkha earthquake triggered an extended economic crisis in Nepal. 

Clean energy potential

Nepal is expected to become a key contributor to the reduction of greenhouse gas emissions in South Asia, with an economically viable hydropower generation potential estimated at around 42,000 megawatts, says Dolma Impact Fund. NMB Bank Nepal secured a $25 million from BII late last year to finance 50 megawatts of new clean energy projects.