A Decade of Transformative Investments and Our Resolve for a Climate-Resilient Future

Over the past ten years, we have not just invested capital in promising companies or projects; we have invested in people, dreams, and the future of Nepal.

September 14, 2024, marked the official 10-year anniversary of Dolma Impact Fund. Today, as we look back on our journey, we are filled with immense pride. Our decade’s pursuit embodies hope, purpose, and perseverance that came together to deliver measurable impact repeatedly.

Strategic Investments Lead to Empowered Communities

What began in 2014 with a vision to blend impact with profit has transformed into a movement— one that has touched lives, uplifted communities, and set Nepal on a path of resilience and sustainability.

When Dolma launched its first fund, DIF I, raising USD 21 million, we were fueled by one simple idea: impact can go hand in hand with growth. By 2016, we increased DIF I to USD 36 million, and in 2021, DIF II reached a remarkable USD 72 million. Altogether, Dolma’s two funds have injected over USD 108 million into Nepal, a number that speaks not just to our financial success but to the deep, lasting change we’ve ignited.

Every investment we made carries a story — of hope restored, of businesses that found a way to flourish, of families whose futures now look brighter. Over these ten years, we’ve seen, firsthand, how much potential resides within Nepal.

Upaya City Cargo, which won the “Best Startup of the Year 2021” award at the NewBiz Startup Summit and Awards. It’s more than just a company. It’s a lifeline for small businesses and communities across Nepal, a spark of innovation that is changing how goods move, creating jobs, and uplifting thousands.

Fusemachines Inc.,which is preparing for its NASDAQ listing, demonstrates the heights Nepali entrepreneurs can reach with the right support. All the while, creating a dependable talent pool in an emerging field like AI.

In the vast, mountainous regions of Nepal, where connectivity can mean the difference between opportunity and isolation, our investment in WorldLink Communications, together with British International Investment (BII), has been a game-changer. The partnership represents one of the largest investments in Nepal’s internet sector, empowering millions with the digital tools they need to connect, learn and thrive.

But beyond the success stories, we are acutely aware of the responsibility we carry. Our work is about creating a better future – not just for businesses but for people, families and entire communities.

Nepal’s Climate Crisis: A Heartfelt Call to Action

In every corner of Nepal, we feel the urgency of the climate crisis. Ranked the fourth most climate-affected country globally, Nepal faces a reality that is deeply personal and painfully real. We see it in the faces of farmers as floods wash away their crops, in the stories of families forced to rebuild their homes, in the fragile ecosystems that once stood strong but now hang by a thread.

Our glaciers, the lifeblood of this nation, are melting at an alarming rate. The towering Himalayas, a symbol of Nepal’s resilience and strength, are under threat. And with them, so are the livelihoods of millions. Imagine losing one third of these glaciers, even in the most optimistic scenario. Now imagine losing up to 80% of them, if the temperatures continue to rise! These numbers stand to squander the very future of our people – adults and children alike. These numbers are the very reason Dolma is stepping forward with a renewed sense of purpose.

Dolma Climate Fund: Our Promise to Future Generations

As we celebrate a decade of transformative investments, we cannot turn to the urgency of addressing the severe climate risks we face.

Dolma Impact Fund has now launched the Dolma Climate Fund (DCF)- because for us, the fight against climate change is not optional. It is essential.

Through Dolma Climate Fund, we aim to harness the power of Nepal’s abundant natural resources to fuel the future. We will invest in clean energy- solar power, hydropower, and electric vehicle (EV) infrastructure- to not only reduce Nepal’s carbon footprint but to build a future where clean energy powers every home, every business and every community.

Our vision is rooted in belief and determination. We envision a Nepal that is not just surviving, but flourishing – a country that stands strong in the face of the climate crisis, a beacon of hope for sustainable development. We will not stop until we have built a country that leads the world in climate resilience and sustainability through action.

As we look ahead, we invite you to join us in our commitment to the people of Nepal, to the global community, and to future generations. Whether you are an investor, a partner or an entrepreneur, your passion and commitment are needed in this fight. Together, we can make Nepal a leader in green economy.
Together, we can ensure that the next 10 years bring not only financial growth but a legacy of hope, action and transformation.

The journey continues. And we walk this path, bravely, and with purpose, and with an unwavering belief in a brighter future for all.

Impact investing in a frontier market

Tim Gocher’s journey as a pioneering impact investor in Nepal began with a two-week holiday to the country nearly 20 years ago. While trekking in the Himalayas, Gocher, from Essex in the UK, fell in love with the nation, its people and their “spirituality”. His love-affair for the rugged country led him to set up a charitable foundation to help alleviate the poverty that blights the country. He went on to marry a Nepalese lady he met through the foundation, and eventually launched the country’s first private equity fund. Dolma Impact Fund I closed in 2014, raising nearly $37 million. A second fund followed in “a terrific vindication of the strategy”: Dolma Impact Fund II has raised a total of $50 million at its second close, and it hopes to reach a final hard close of $75 million by November.

The funds, which focus on Nepal’s energy, healthcare and technology sectors, provide growth capital to small and medium-sized enterprises (SMEs), and renewable energy projects. They were established to generate private sector growth and jobs, positive social and environmental impact, and risk-adjusted market returns.

Raising funds to invest in a frontier market such as Nepal has been a labour of love, but it is also one of the most impactful places in which to invest, says Gocher, who is founder and CEO of Dolma Fund Management, and founder and chair of the Dolma Foundation.

Nepal struggles to attract investment from the ‘global North’. However, Gocher, who spent three years raising the first fund, says this leaves rich pickings for his fund.

The funds, which focus on Nepal’s energy, healthcare and technology sectors, provide growth capital to small and medium-sized enterprises (SMEs), and renewable energy projects. They were established to generate private sector growth and jobs, positive social and environmental impact, and risk-adjusted market returns.

Raising funds to invest in a frontier market such as Nepal has been a labour of love, but it is also one of the most impactful places in which to invest, says Gocher, who is founder and CEO of Dolma Fund Management, and founder and chair of the Dolma Foundation.

FMO, CDC Group, Swedfund and IFC participate in first close of Nepal-focussed Dolma Impact Fund II

Dolma Fund Management announces the first close of Dolma Impact Fund II (Dolma II) – a private equity fund investing primarily in renewable energy, healthcare and technology in Nepal. Investors in this $40m first close are FMO, the Dutch entrepreneurial development bank; CDC Group, the UK’s development finance institution and impact investor; Swedfund, the Swedish development finance institution; and the International Finance Corporation (IFC). The final close is targeted at $75m.

The timing is important as COVID cases rise in Nepal, following the trend in India. Dolma II’s target sectors will directly address capacity constraints in healthcare and enable digital solutions to scale rapidly that will be vital both during and following the pandemic.

Pre-COVID, Nepal was one of the world’s fastest growing economies, achieving GDP growth rates of between 6.7% and 8.2% in 2017-2019, according to the World Bank, as it continues its journey towards Middle Income status. Even in 2020, Nepal outperformed its South Asian peers. Dolma II is part of a shift towards increased foreign direct investment (FDI) in Nepal, a country with a population of almost 30 million. Dolma II follows the success of Dolma Impact Fund I (Dolma I) which pioneered institutional FDI and Environmental and Social standards from 2014 in this high-growth emerging market. Dolma I’s portfolio includes almost 50 MW of renewable energy, some of the country’s leading AI and e-commerce firms, and much-needed pharmaceutical manufacturing and medical care.

Other foreign investment successes in Nepal include an internet service provider, mobile telco and hydropower projects, while long-established multinationals such as Standard Chartered, Unilever and Coca-Cola continue to thrive in the country. To further accelerate FDI, Nepal Invests platform was launched last month by CDC, FMO and the Swiss Agency for Development and Cooperation (SDC).

Tim Gocher, CEO, Dolma Fund Management said: “Our second fund is an international vote of confidence in Nepal’s private sector and talent. Our first fund demonstrated the commercial and impact opportunities in Nepal. Dolma Impact Fund II is a big step to opening these opportunities to a broader set of foreign investors to whom impact is a priority”.

Jaap Reinking, Director Private Equity, FMO said: “As an anchor investor in Dolma Impact Fund I, we’re excited to invest in Dolma Fund Management’s second fund. Not only does this support our ambitions towards accelerating climate action, financial inclusion, and reducing inequalities, it also focuses on improving environmental and social conditions for many Nepalese workers and businesses. We are proud to support Dolma Fund Management as it will invest in the emerging tech sector and much-needed healthcare services and jobs in Nepal.”

Srini Nagarajan, Managing Director and Head of Asia, CDC Group, commented: “Following the launch of Nepal Invests, CDC’s investment in Dolma Impact Fund II reiterates our commitment to helping draw greater FDI to Nepal, particularly into sectors, such as renewable energy, technology, healthcare and education, where there are opportunities for high social impact. We are pleased that our commitment will play a role in supporting the country’s post-pandemic economic recovery, help enhance digitisation, boost skills development and facilitate a thriving and resilient economy.”

Gunilla Nilsson, Head of Energy & Climate, Swedfund, said: “Dolma Impact Fund II focuses on Swedfund’s three core sectors (renewable energy, financial inclusion and healthcare) while technology and increased digitalization are over-arching themes for us. A strong driving force behind our investment is to increase the number of decent jobs in the formal sector and stimulate the local economy in Nepal. We are pleased that the fund is also expected to contribute to women’s economic empowerment and meets the 2X Challenge criteria.”

Babacar S. Faye, Resident Representative, IFC commented: “Private equity funds can be an important source of capital and expertise for local entrepreneurs in Nepal—particularly in allowing them to expand their businesses, create more jobs, and provide essential goods and services. IFC is working towards deepening the private equity market in Nepal. Dolma is our second investment in this sector, and we hope that this will have a demonstration effect, beyond the financial returns, and attract more investments. This market will continue to grow if also supported by additional enabling reforms.”

Dolma Impact Fund I and II target risk-adjusted market returns while their impact is aligned to Nepal’s SDG targets. For SDG 5 – Gender Equality, Dolma II qualifies for the 2X Challenge, to drive gender balance in the portfolio. For SDG 8, 9 and 10 – relating to Work, Industry and Inequality, Dolma I’s portfolio companies generated quality employment for almost 5,000 people in Nepal since 2014. The majority of these jobs are for youth under 35. Over the same period, an estimated 2 million mostly young workers left Nepal to work abroad. For SDG 7 and 13 – Clean Energy and Climate Action, Dolma I’s renewable energy portfolio will avoid 219,000 tonnes of CO2 emissions annually. Further reducing polluting emissions in Dolma II is a priority as the Himalayan glaciers are set to lose two thirds of their mass in a business-as-usual scenario, according to the International Centre for Integrated Mountain Development (ICIMOD), threatening the 600m people living downstream with devastating floods.