Impact investing is limited in Nepal. The International Finance Corporation, the World Bank and the Dolma Impact Fund, which is active in Nepal’s social entrepreneurship scene, are key players.
Now, One to Watch plans to raise a $20 million fund to invest in local businesses. The fund is targeting 15 investments of $300,000 to $1 million. “We have identified a specific role for us in the (Nepal) market,” says Willem Grimminck, One to Watch’s director.
“All the small- and medium- enterprises are either too risky for venture capital or too big for microfinance.” One to Watch’s $4 million first fund invested in startups in agriculture, healthcare, building, and skills development.
Early backers for its second fund include Peter Tropper, the former chief investment officer for the IFC’s private equity group, and the Dutch Good Growth Fund.