NICCI explores challenges facing Nepal’s startup ecosystem

KATHMANDU: Nepal-India Chamber of Commerce and Industry (NICCI) held a ‘Startup Sambad Roundtable’ in Kathmandu on Friday to explore the challenges facing Nepal’s startup ecosystem and to outline priorities for policy advocacy and institutional support.

Chaired by Kunal Kayal, Vice-President and Convenor of NICCI’s Startup and Private Equity Committee, the roundtable formed part of NICCI’s effort to reduce youth migration by strengthening domestic entrepreneurship opportunities. Participants discussed structural barriers they say are constraining the growth of homegrown ventures.

Founders and sector representatives pointed to significant gaps in infrastructure, including a shortage of testing facilities and research parks. Several speakers criticised government procurement practices that they said favour imported products over locally developed solutions. Subash Pandey of Agro Range Nepal and Bijay Bhattarai of Diyo A.I. urged policymakers to shift procurement towards domestic innovation.

Delegates also highlighted practical hurdles such as difficulties with international payment systems and the complexities of channelling foreign investment into Nepal. The need for stronger intellectual property and patent protections was repeatedly raised. Startups described challenges ranging from procuring specialised materials for space technology to overcoming a perception that IT services are a luxury, and called on the government to act as an early adopter of domestic solutions.

Gaurav Tayal, Vice-President of NICCI, said Nepal has a vibrant pool of innovators but stressed the need for structured mentorship and simplified exit mechanisms to help startups scale. Roshee Lamichhane of KUSOM and representatives from FNCCI and CNI warned that incubation efforts remain fragmented and often siloed within individual institutions.

Sandeep Kamat, a member of the Startup Committee, urged Nepal to learn from established ecosystems such as Singapore and Bangalore by better leveraging its diaspora and strengthening links between academia and industry. Nischal Singh Bhandari of Aadhyanta pointed to an “investment readiness” gap, saying many startups require improved financial structuring before they can attract equity financing.

Closing the session, Vice-President Kayal said the discussions provided a clear agenda for NICCI’s advocacy work. “The challenges discussed today, ranging from regulatory hurdles to market trust, provide us with a clear roadmap for advocacy,” he said. “NICCI will continue to facilitate Nepal-India business linkages to help our startups scale and contribute to Vision 2030.”

Organisers noted that participating startups recently benefited from a specialised training and mentorship programme at IIT Madras organised by the Government of India, an initiative NICCI said strengthens cross-border entrepreneurial ties.