Dolma Impact Fund II (Dolma II) targets growth companies in Nepal with high commercial and impact potential. With its first close of USD 40mn on 6th May 2021, and Dolma Impact Fund I’s performance on gender equality, Dolma II qualifies for the 2X Challenge.
The 2X Challenge (www.2xchallenge.org) is an initiative of 20 Development Finance Institutions and Multilateral Development Banks to collectively mobilize $15 billion in commitments that provide women in developing country markets with improved access to leadership opportunities, quality employment, finance, enterprise support and products and services that enhance economic participation and access.
Dolma II invests in renewable energy, healthcare, and technology sectors driving developmental impact and environmental and social value creation. The fund invests in growth companies with cumulative revenue above $500,000, and renewable energy projects approaching or with a PPA. They invest between $1m and $6m per transaction. Along with companies meeting the fund’s investment mandate, Dolma II aims to add to its developmental impact by enabling the economic empowerment of Nepal’s women through gender-lens investing. Dolma’s gender lens investing approach aligns with the 2X framework, including supporting companies that meet either of these four criteria: 1) businesses with women founders or with 51% female shareholding; 2) 20-30% women in senior management or 30% on the board of directors; 3) 30-50% women in the workforce, or 4) products or services that specifically or disproportionately benefit women.
Tim Gocher is the CEO of Dolma Fund Management, that manages Dolma I and II. He said: “Female employment has always been a priority for Dolma. Women make up 33% of our management team and 41% of our total staff, and our portfolio companies employ 1,100 women. Admission to the 2X Challenge provides structure and focus on our gender-lens investment strategy with the support of our investors, FMO, CDC, Swedfund, and IFC. We welcome and encourage proposals for investment that meet our gender lens criteria”
“We are proud to support Dolma Impact Fund II with applying a gender lens to their investments in the emerging tech sector and much-needed healthcare services and jobs in Nepal,” says Jaap Reinking, Director Private Equity at FMO.
Karin Parmenstam, Chief Investment Officer at Swedfund, says: “We are proud to support Dolma Impact Fund II in embedding a gender perspective into their operations and investments in Nepal. The work of the fund both contributes to women’s economic empowerment and investments in important sectors such as renewable energy, healthcare, and technology.”
“CDC’s investment in Dolma Impact Fund II supports economic growth in Nepal, with investments in key sectors that have high social impact. We are pleased to qualify Dolma Impact Fund II under the 2X Challenge and look forward to supporting Dolma to strengthen women’s economic inclusion through its gender-lens investing strategy,” says Srini Nagarajan, MD, Head of Asia at CDC Group.
