Nepal-focused Dolma Fund Management has raised $10 million for its second impact fund from the Japan International Cooperation Agency (JICA) and brought the vehicle to a final close of nearly $72 million.

The firm had earlier targeted to raise $75 million for the Dolma Impact Fund II.

Other development financial institutions which have committed to the fund include Dutch development bank FMO, British International Investment, Swedfund, the International Finance Corporation (IFC), and the US International Development Finance Corporation (DFC).

Dolma’s second fund will continue to invest in the healthcare, technology, and renewable energy sectors in Nepal.

Dolma stated that ever since the major earthquake in 2015, which caused a temporary economic downturn, the Nepalese economy has revived and is expected to graduate from the least-developed countries category by 2026.

While the lack of promising domestic industries and job opportunities in the country has led to a “hollowing out of industry”, the private equity firm said it also creates opportunities for the fosterage of promising industries such as healthcare and information technology.

In addition, Nepal has a natural advantage for renewable energy development, with abundant water resources and an economically viable hydropower generation potential estimated at around 42,000 MW.

Dolma Fund Management was established by Tim Gocher in September 2014 as an impact fund manager, following the formation of The Dolma Foundation in Nepal in 2003.

The firm has invested in local companies such as data processing startup CloudFactory Group, e-commerce platform Sastodeal, intra-city logistic-tech marketplace Upaya City Cargo, Suri Hydropower and Nidan Hospital, among others.

Its ticket size ranges from $1 million to $10 million for significant minority or majority stakes.

Dolma’s first fund was closed at $36.6 million in 2018. The firm said on its website that the vehicle has achieved its first exit ahead of schedule, at almost 3x the fund’s target return.