WHAT WE DO/CRITERIA

We help entrepreneurs running Small and Medium Enterprises (SMEs) to scale up their operations by injecting equity and providing technical assistance. The SMEs need to have enterprise value and a track record before we can commence doing business with them.

A Glimpse

  • A Private Equity (SME Venture) Impact Fund – Globally only the 6th country so far to receive such a fund.
  • Jointly owned by IFC (80%) and WLC (20%).
  • Can invest up to 49% of total equity.
  • Invests between US$ 100K to 500K.
  • No collateral required.
  • No interest to be paid.
  • 4 years funding with ‘harvest period’ of 6 months.
  • IRR – minimum 20%

What It Is Not?

Not a Grant nor Subsidised Funding.

Basic Qualification

  • Your business should not be in the IFC’s exclusion list of industries.
  • You should not have a negative history with any government authority.

SME Basic Criteria

Company must respect any 2 of the followings:

  • Company should have < 50 staff.
  • Annual turnover must be < US$ 3M.
  • Company should have < US$ 3M assets.

Basic Criteria

Operations

  • Your company must be registered with the CRO as public or private limited company.
  • Preferably it should be in operation for at least two years; or
  • It can be a new venture which is a part of an old business in operation for over two years.

Accounts

  • Preferably, your company should not have double books of accounts.
  • If you do then you should be able to convert to a single book; and
  • There should be a set of books showing actual data of previous years.

Loans

  • Preferably, your company shouldn’t have bank loans; or
  • Loans should be repaid by the time of investment.
  • In some cases, BO2 investment maybe used for loan repayment as long as other basic criteria are not contravened.

Development Impact

Investment should be utilised for growth

  • Top or bottom line.

Social impact

  • New jobs are created.
  • Total absence of child labour.
  • Adhere to government standards and governance.

Environmental impact

  • Investments must be climate friendly.
  • Recycling and reusing.

Investment Process

Eight-step Mode

  • Project Concept Note
  • Full Application
  • Preliminary Review
  • Client Visit
  • Preliminary Evaluation
  • Due Diligence Review
  • Investment Report
  • Evaluation by the Investment Committee of BO2.

Exclusive Benefits

  • Access to world-class expert advice of our national and international team members.
  • Availability of interest free technical assistance fund to improve gaps in your business.
  • Gateway to the rich network of the WBG and WLC to grow your business in Nepal and internationally.

About White Lotus Centre

White Lotus Centre Pvt. Ltd (WLC) offers world-class SMART management, advisory and consulting services on Private Sector Development and Public Communications. The team comprises of bankers and development experts with experience in entrepreneurship development and SME financing internationally.

WLC contributes towards knowledge building and is a practice hub for private sector development in Nepal.

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