KATHMANDU: The Confederation of Nepalese Industries Young Entrepreneurs Forum (CNIYEF) recently organised an interaction on ‘How VC’s work in Nepal’. During the event, Manish Thapa, Chief Strategy Officer of Global Equity Fund said, “If the Securities Board of Nepal (SEBON) facilitates and simplifies the processes then investment worth Rs 2 billion could come into Nepal through Private Equity Venture Capital (PEVC).
He mentioned that there are half a dozen PEVC firms awaiting licence from SEBON. If the companies get the consent, then the aforementioned investment can be received within this year, reiterated Thapa. There are global funds and investment companies who are willing to invest in Nepal, he added.
Thapa also informed there is a Singapore-based company similar to Dolma Impact Fund which is Nepal focused and is trying to invest in Nepal. Similarly, DFC of USA, Koparco of France and Dutch fund FMO are also trying to bring investments to Nepal. FMO meanwhile has already invested some funds in NMB Bank. Some of the companies have already sent funds to Nepal through other organisations or PEVC. Although it is said there will be investment of Rs 2 billion, the amount that each company will be funding has not been disclosed.
According to Thapa, some funds like Dolma want to run their own venture capital (VC) in Nepal while others want to invest in Nepal by acquiring regional companies or through other PEVCs in the country. There are other private equities that are being established that want to invest in Nepal, he added.
Currently, Global Equity Fund is running a VC of Rs 3 billion and if other equities and venture capitals chip in with just Rs 2 billion each then there’s a possibility of receiving Rs 14 to Rs 15 billion funds.
Portfolio companies are in the pipeline to invest these funds. He said the concept of PEVC, which started in Nepal in 2015, is gradually transforming into a big industry and playing a key role in the development of entrepreneurship.
Venture capitalists have not been able to invest as SEBON has not issued a licence. However, half a dozen equity funds have already received Letter of Intent (LOI). NIC Asia Capital, NIBL S Capital, Prabhu Capital, Lakshmi Capital, Nabil Investment, and Global Equity Fund have already taken LOIs.