Organization · Private Equity
Business Oxygen (BO2)
Business Oxygen (BO2) is Nepal's first private equity fund focused on climate initiatives, providing risk capital and advisory support to SMEs across various sectors in Nepal.
Overview
What Business Oxygen (BO2) does
What Business Oxygen (BO2) is
Business Oxygen (BO2) is Nepal's first private equity fund focused on climate initiatives, providing risk capital and advisory support to SMEs across various sectors in Nepal.
How it participates in the startup ecosystem
The current public profile supports funder capabilities. Each capability below is shown separately so organization identity and role-specific information do not get conflated.
Operational profile
Organization status and context
Organization status describes the entity itself. Funding and program availability appear within the relevant capability profile.
- Operational status
- Active
- Organization type
- Private Equity
- Founded
- Founded in 2012
- Approximate age
- About 14 years
- Structured capabilities
- Funder
- Last reviewed
- March 28, 2026
Official channels
Find Business Oxygen (BO2) elsewhere
Open the official website or a supported primary organization account.
Capability profile
Business Oxygen (BO2) as a funder
Investment thesis
Business Oxygen (BO2) aims to provide risk capital and advisory support to small and medium enterprises (SMEs) in Nepal, facilitating their growth and contributing to community development.
Focus narrative
BO2 invests in small and medium enterprises (SMEs) across various sectors in Nepal, including renewable energy, information technology, manufacturing, tourism, education, health, and agri-processing. The fund is sector-agnostic and adheres to rigorous Environmental, Social, and Governance (ESG) criteria in its investment processes. BO2 typically invests between $500,000 and $1,000,000, acquiring up to 49% equity in the companies it supports.
Value beyond capital
BO2 does not require collateral and does not charge interest, with a funding duration of 4-5 years and a minimum internal rate of return (IRR) of 20%.
Terms and economics
- Typical check
- $500,000–$1,000,000
Focus and fit
- Stages
- Seed · Series A · Series B · Growth Equity
- Regions
- Asia
Availability
- Currently deploying
- Yes
Portfolio and track record
- Recorded portfolio count
- 16
Portfolio context
BO2 has made 16 investments in SMEs across six sectors of Nepal’s economy, with five successful exits to date. Notable portfolio companies include: Bakas Renewable Energy Limited: Produces biomass pellets for energy, creating local employment opportunities. Gandaki Urja: Operates Nepal’s largest commercial-scale biogas plant, converting organic waste into compressed natural gas and organic fertilizer. Saral Urja Nepal: Provides sustainable energy solutions and was the first to commercially transact in solar energy under the RESCO model. Fusemachines Nepal: A technology company focused on AI software development and education. Genese Solution Pvt Ltd: An IT company that has received multiple rounds of investment from BO2 to support its growth.
Common questions
What to know about Business Oxygen (BO2)
Upseed classifies Business Oxygen (BO2) under the Private Equity organization type. Its current public profile includes funder capabilities.
Source and update disclosure
Know what this page is based on
Source basis
Public organization and program material, official websites, and structured Upseed records.
Last reviewed
March 28, 2026
Known limits
Capability profiles appear only when a structured public profile also contains decision-useful role evidence. Terms and availability can change.
Upseed is an independent guide. It is not affiliated with or endorsed by the organization described on this page.