Nepal Impact Investment Community 2
Empowering Nepal’s Digital Future: Investing in Innovation and Impact
Nepal Impact Investment Community 2
Empowering Nepal’s Digital Future: Investing in Innovation and Impact
Nepal Impact Investment Community 2
Empowering Nepal’s Digital Future: Investing in Innovation and Impact

About NIIC 2

Over the past decade, Nepal has steadily moved from political transition to a focus on economic development. But for that development to be sustainable and inclusive, it must be anchored in the realities of the 21st century – and that means investing in our digital economy.

This is precisely the vision behind the Nepal Impact Investment Community 2 – NIIC 2 Fund, a USD 100 million blended finance facility designed to scale tech and tech-enabled SMEs – or as we call them, Digital Economy Catalysts (DECs).

About NIIC 2

Over the past decade, Nepal has steadily moved from political transition to a focus on economic development. But for that development to be sustainable and inclusive, it must be anchored in the realities of the 21st century – and that means investing in our digital economy.

This is precisely the vision behind the Nepal Impact Investment Community 2 – NIIC 2, facility designed to scale tech and tech-enabled SMEs – or as we call them, Digital Economy Catalysts (DECs).

Why NIIC 2? Why Now?

Nepal’s digital landscape is ready for rapid growth, supported by strong infrastructure and a pool of skilled, tech-savvy professionals. Today, over 91% of Nepal’s population has internet access, mobile penetration stands at 130%, and digital payment platforms are growing by nearly 100% year-on-year. Yet the tech ecosystem remains severely under-capitalized.

At the same time, SMEs in Nepal – particularly DECs – face structural barriers to accessing capital:

  • Banks are unfamiliar with digital business models
  • Equity investors struggle to build pipeline
  • And these SMEs often lack the internal resources for growth planning or financial compliance.

NIIC 2 is designed to address these gaps, while generating both commercial and development returns and at the same time, performing a market-building function.

Our Approach

We are taking a cascading investment approach:

  • Debt funding will be deployed through local banks – with technical assistance to fund up to 300 high-potential DECs.
  • This will be followed by a separate equity fund, investing in 15–20 standout companies with regional or global ambitions.
  • Alongside this capital, we provide targeted business development services and work to strengthen market linkages between local tech developers and consumers.

NIIC 2 offers more than just capital – it delivers strategic capital, supported by insight, advisory, and systems-level thinking.

A Call to Collaborate

  • Growth-oriented capital
  • Business development support tailored to your needs
  • A strong network accelerating Nepal’s digital transformation
  • Lending Growth: Access to a pipeline of scalable, tech-enabled SMEs.
  • Capacity Building: Technical assistance to develop tools, knowledge, and processes for serving new client segments.
  • Impact & Visibility: Alignment with national digital development priorities and global SDGs, enhancing the bank’s impact.
  • Co-Investment Opportunities: Future collaboration on equity investments through equity fund’s follow-on facility.
  • Directly supports inclusive private sector-led growth
  • Aligns with SDGs on innovation, jobs, and economic resilience
  • Focus on youth-led, digitally oriented SMEs with gender and inclusion lens
  • Bridges key market failures-especially financing gaps and TA needs
  • Scalable and replicable model for digital development in fragile economy
  • A strong focus on inclusive growth and private sector development
  • Alignment with SDGs related to innovation, employment, and financial inclusion
  • A de-risked entry point through blended finance and TA
  • The potential to create a replicable model for financing digital SMEs in other frontier markets

We’re bringing together DECs, banks, development partners, and DFIs to unlock Nepal’s digital potential. Through NIIC 2, we’ll fund bold tech entrepreneurs, equip banks to serve them, and deliver catalytic returns for DFIs and development partners.

Interested in joining the movement?
Reach out to us at info@onetowatch.nl

Solutions Offered

Pre-loan Business Development Support

Loan Facilitation

Post-loan Business Development Support

Opportunity to Secure Equity Financing

Pre-loan Business Development Support

The objective of the pre-loan BDS is to make tech and tech-enabled SMEs loan-ready through tailored BDS. The Tailored Business Development Services Areas include

Post-Loan Business Development Support

Post-loan BDS focuses on ensuring that SMEs effectively utilize their loans to sustain growth, positioning them to absorb equity funding in the future. Key areas of potential post-loan BDS include:

HIGHLIGHTS

Stories

NIIC 2 Gallery

Partner Banks

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