Kathmandu — Nepal ranked first in South Asia for startup ecosystem growth rate in the 2026 Global Startup Ecosystem Index, leapfrogging Sri Lanka and Bangladesh. The report, released by Startup Genome, cited a 340-percent increase in early-stage funding over the past three years as well as a maturing regulatory framework for digital finance.
Fintech, agritech, and edtech were identified as the three dominant sectors. Notably, Kathmandu-based Hamro Pay crossed one million active users this quarter, and two Nepali agritech startups — FarmLink and CropSense — closed Series A rounds with Singapore-based venture funds.
The government's Digital Nepal Framework, launched in 2019, has played a supporting role by fast-tracking broadband rollout and creating a regulatory sandbox for fintech pilots. Critics, however, note that access to risk capital outside Kathmandu remains severely limited, and talent retention is undermined by emigration pressures.