Investor Profile: Business Oxygen — Thesis, Cheque Size & How to Apply

In Nepal, where bank lending often decides whether a small company can grow, Business Oxygen (BO2) was created to offer a different kind of capital: equity, plus hands-on help. Described as Nepal's first private equity fund, and its first international small and medium enterprise venture and climate impact fund, BO2 was promoted by the International Finance Corporation (IFC) and managed by White Lotus Centre.

Investment thesis

BO2's thesis is that small and medium enterprises are vital to the health and stability of nations, and that access to risk capital and business assistance can help them scale while accelerating the development of surrounding communities. Investments must comply with environmental, social and governance measures, following the IFC's principles on social and environmental management systems.

Sectors and stages

BO2 invests across all sectors mapped across Nepal's geography, provided the company has enterprise value and a track record. That broad mandate covers restaurants, food processing, solar energy, eco-tourism, healthcare, artificial intelligence services and manufacturing. The stage is growth-stage small and medium enterprises, not pre-revenue startups.

Fund size and cheque size

BO2's first fund was USD 14 million, according to a 2019 report republished on its own site. It secured USD 7 million from the IFC in 2015 and a further USD 7.3 million through the United Kingdom's Department for International Development and the Climate Investment Funds' Pilot Program for Climate Resilience in 2017. Cheque sizes have been reported as usually between USD 100,000 and USD 500,000 per company, taking up to 49% equity, with an expected internal rate of return of at least 20%, while an older profile put the range at USD 100,000 to USD 1.5 million. The size of Fund II is not publicly disclosed.

Notable portfolio

BO2 says it has made 16 investments across six sectors and accomplished 5 exits as of July 2026. Named investments include Dalle Restaurant, Le Sherpa, Godawari International, Saral Urja Nepal, Himalayan Chain Resort, MedPro International, Fusemachines and Genese. Exits include Godawari International, Le Sherpa, Shanti Engineering, Dalle Restaurant and The Lakeside Retreat.

Partners

BO2 is led by chairman and chief executive Siddhant Raj Pandey, a banker for more than two decades who previously worked with Merrill Lynch and Riggs Bank in London and served as chief executive of Ace Development Bank in Nepal. The fund's backers are the IFC, the United Kingdom's Foreign, Commonwealth and Development Office, the Climate Investment Funds and WLC Ventures, with White Lotus Centre as fund manager.

Programs, credits and perks

BO2 does not run a startup accelerator or a published credits programme. Its equivalent of a programme is technical assistance: alongside equity, it helps investee companies build financial systems, quality-assurance standards and corporate governance frameworks.

How to apply for funding

Founders should read the current status carefully: BO2's own homepage states that it is now fully invested and committed and closed for further investments, and that it is in the process of raising Fund II. The real route for now is to monitor BO2's website for Fund II announcements, prepare a track record showing enterprise value, governance and environmental and social compliance, and approach through [email protected] for a conversation about timing.