ABM - Nepal Commerce and Economic Podcast

From Idea to Unicorn? An Analysis of Nepal’s IT Startup Ecosystem: Availability of Funding, Role of Incubators, and Success Stories (and Failures) to Learn From


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When you think of Nepal, your imagination conjures up images of the snow-capped peaks of the Himalayas, the ancient temples of Kathmandu and the trekking trails leading to Everest Base Camp. That image is certainly true, but it hides another, equally exciting peak that a new generation of Nepalis is now conquering: the peak of tech entrepreneurship. Off the beaten track, in the offices and co-working spaces of Kathmandu, a quiet revolution is unfolding. A country long associated with an agrarian economy and tourism is rapidly transforming into one of South Asia’s most dynamic startup hubs.

The numbers speak for themselves. If in 2015 there were only about 300 startups in Nepal, then by 2023 their number exceeded 1,500. Nepal is ranked 5th in South Asia by StartupBlink's startup ecosystem rankings, and its capital, Kathmandu, is among the top 1,000 cities in the world to start a business. Information technology has become the leader in terms of the number of investment deals, attracting the attention of both local and international investors. This rapid growth is a testament to the tremendous energy and entrepreneurial spirit that has gripped the country's youth.

However, behind the impressive quantitative growth lies a troubling paradox. Despite the increase in startups, Nepal has slipped several places in the global rankings over the past year, ranking 107th in the world. This fact points to a “maturity gap”: enthusiasm and the number of ideas outpace the development of the supporting infrastructure – accessible capital, progressive legislation and qualified personnel. The ecosystem is growing in breadth, but not yet in depth. Many projects fail to move from the idea stage to a sustainable business, and the path to the status of a “unicorn” – a technology company with a valuation of more than $1 billion – seems insurmountable.

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ABM - Nepal Commerce and Economic PodcastBy Alpha Business Media