The Finnish Fund for Industrial Cooperation (Finnfund) has made an equity investment of 10 million euros (around Rs 1.42 billion) in WorldLink Communications, the largest internet service provider in Nepal.

Dileep Agrawal, Managing Director at Worldlink, and Kuutti Kilpeläinen, Senior Investment Manager, Head of Digital Infrastructure and Solutions portfolio at Finnfund, signed the investment agreement amid a ceremony on Thursday, November 28. Minister for Foreign Trade and Development of Finland Ville Tavio attended the event.

Finnfund’s investment will be used to expand the existing fiber network and to build WorldLink’s first Tier 3 data center, reads the statement issued by Finnfund the same day.

“Nearly half of the population in Nepal still lacks broadband internet access and there is a notable disparity between urban and rural areas,” the statement reads. “The world class data center will improve Nepal’s connectivity and boost economic growth.”

“Finnfund’s investments in digital infrastructure seek to provide communities with faster, more affordable and reliable internet, and WorldLink has been working towards bridging the digital divide in Nepal by expanding its services to rural areas of Nepal and to remote villages” the statement quotes Kilpeläinen as saying. “Being a Finnish impact investor, we of course also value the fact that WorldLink uses Nokia’s advanced technology to enhance its internet services.” 

The Nokia and WorldLink collaboration aims to improve the overall internet experience for WorldLink’s customers, making it more reliable and faster.

WorldLink’s expansion into the data center sector will benefit not only WorldLink’s customers but also other internet service providers, telecoms and both public and private sector organisations. 

“Finnfund’s investment is a significant milestone in our mission to connect every corner of Nepal to fast, reliable, and affordable internet”, the statement quotes Agrawal as saying. “By expanding our fiber network and establishing a world-class data center, we aim to bridge the urban-rural digital divide and accelerate digital transformation across the country.”

Last year, British International Investment and Dolma Impact Fund (DIF) II made their largest combined investment in Nepal of Rs1.98 billion in WorldLink.

WorldLink provides employment to over 5,000 people and has 35 percent broadband market share in Nepal, reaching over 900,000 households. The company currently provides services in 73 of the 77 districts across the country.