The Evolving EdTech Landscape in Nepal: Companies, Ecosystem, and Future Trajectories

Nepal’s education technology (EdTech) sector is experiencing a period of dynamic growth, driven by a significant surge in digital adoption and a burgeoning entrepreneurial spirit. This report provides a comprehensive analysis of the prominent EdTech companies operating within the country, examines the broader ecosystem of government initiatives and support structures, and identifies the key challenges and opportunities shaping its future. While the sector demonstrates immense potential to bridge educational disparities and enhance learning outcomes, particularly in remote areas, its development is critically contingent on addressing persistent infrastructural gaps, refining policy implementation, and fostering a robust investment environment. The analysis reveals a diverse landscape of players, from those focused on foundational digital literacy and infrastructure to advanced online learning platforms and specialized teacher training programs, all contributing to a transformative shift in Nepal’s educational paradigm.

II. Introduction to Nepal’s EdTech Landscape

Nepal’s journey towards a digitally empowered education system is a compelling narrative of rapid transformation. The nation’s tech ecosystem has witnessed a remarkable expansion, evidenced by a dramatic increase in internet penetration, soaring from a mere 0.9% in 2005 to an impressive 65.9% by 2021.1 This digital revolution has laid a crucial foundation for innovation across various sectors, with the information technology (IT) sector itself demonstrating a robust 15% annual growth rate over the past decade, contributing significantly to the national economy.1 Major tech hubs, predominantly in cities like Kathmandu, Pokhara, and Biratnagar, have emerged as fertile grounds for entrepreneurship, fostering an environment conducive to technological advancement.1

The strategic importance of EdTech in Nepal cannot be overstated. It is seen as a vital mechanism for addressing long-standing educational disparities, particularly the widening gap in access and quality between urban and rural areas.2 EdTech offers a pathway to enhance learning outcomes, improve access to quality education, and foster innovation in teaching and learning, especially for communities in remote and underserved regions.3 The increasing adoption of e-learning, propelled by technological advancements and a growing demand for accessible educational opportunities, holds immense promise for fundamentally transforming Nepal’s educational landscape.3

The rapid growth in internet access, even with its inherent imperfections, presents a profound opportunity for Nepal to bypass traditional developmental stages in education. Instead of relying solely on the arduous and costly process of building extensive physical educational infrastructure across challenging terrains, digital platforms offer a mechanism to scale access much faster and more cost-effectively. This signifies a shift towards a hybrid educational model where digital tools play an increasingly central role in overcoming geographical barriers and delivering education. This approach suggests that, despite the ongoing challenges related to physical infrastructure, the existing digital penetration allows for a non-linear progression in educational development, enabling companies and government initiatives to achieve significant reach and impact with comparatively lower capital expenditure than conventional methods.

III. Prominent EdTech Companies in Nepal

The EdTech sector in Nepal is characterized by a range of companies addressing diverse needs, from foundational infrastructure to specialized content and teacher development.

EduTech Nepal

EduTech Nepal is a key player focused on establishing computer lab networks across the country, with an ambitious vision to provide hope and opportunities for over one million Nepali children.5 The organization actively installs computer labs in schools across all seven provinces and 31 districts, typically equipping classrooms with 20 computers, while also offering smaller labs with 10 or even 5 computers for smaller institutions.5 Their impact is tangible: as of November 2024, they successfully installed a 29-computer lab at Shree Jagadamba Secondary School, a significant upgrade for its 572 students who previously shared a single computer.5 Overall, EduTech Nepal has reached 267,643 students and has issued 1,827 respected certificates with exams since 2022, underscoring their commitment to formal digital literacy.5

The organization operates through a network of robust partnerships, including support from entities like YYY Foundation, Himalayan Trust Nepal, and World Vision Nepal, alongside content partners such as Deerwalk Learning Centre and OLE Nepal.5 The involvement of individuals like Amit Agrawal, Co-founder/Director of Khalti Digital Wallet, and Ashok, who manages hardware procurement and teacher training, highlights the blend of technical and operational expertise within their team.6

EduTech Nepal’s focus on physical computer lab installations, particularly in rural areas, addresses a fundamental challenge in Nepal’s educational landscape. Many public schools in these regions lack basic technological foundations, often operating with outdated hardware and inconsistent internet access.2 This means that while other EdTech companies might concentrate on online content or advanced digital tools, EduTech Nepal tackles a more primary issue: providing basic access to functional computing infrastructure. Their work is essential for building the very foundation upon which more sophisticated EdTech solutions can eventually be adopted. Without this foundational “hardware” layer, advanced digital learning platforms would face significant barriers to reaching and impacting students in underserved regions.

MeroSiksha

MeroSiksha positions itself as the “Largest online Learning Platform in Nepal,” aiming to be a “One Stop for all Academic Needs”.8 Its comprehensive suite of services includes notes, videos, quizzes, past paper solutions/guides, flashcards, and expert Q&A.8 The platform caters to a broad student demographic, from Class 5 to 12, as well as those preparing for Bridge Course, IOE/CEE (Institute of Engineering/Common Entrance Examination), and A-Levels.8 MeroSiksha operates on a subscription model, with annual plans varying by grade level, ranging from Rs. 3900 for lower grades to Rs. 11700 for NEB | 12.8 The platform claims an impressive reach, serving over 80,000 students from 500+ schools across Nepal.8 Student testimonials frequently praise its utility for notes, MCQ practice, and subject revision.8

MeroSiksha is a product of Budhanilkantha Education Services (BES), an established education and innovation hub.4 The platform has also gained recognition, with its CFO, Tilak Prasad Dhital, winning the Global Student Entrepreneur Award Nepal in February 2024.10 However, a notable discrepancy exists in the publicly available information regarding its funding. While its operational scale and recognition suggest a robust financial standing, a company profiling platform, Tracxn, reports MeroSiksha as an “unfunded company” and describes it as a “Provider of educational consultancy services for international study opportunities”.11 This directly contradicts the platform’s self-description and the award recognition.

This inconsistency highlights a potential challenge within the Nepalese startup ecosystem concerning data transparency and the external validation of funding. It suggests that many successful ventures in Nepal might be self-funded or receive capital through less conventional channels, such as internal funding from a parent company like BES, which are not typically captured by standard venture capital databases. This situation complicates market analysis and underscores the necessity for more in-depth due diligence for potential investors, extending beyond readily available database information.

Karkhana

Karkhana, a social enterprise established in 2069 B.S. (approximately 2012), is at the forefront of designing hands-on learning experiences, with a particular emphasis on STEAM (Science, Technology, Engineering, Arts, Mathematics) education.12 The company develops learning and maker spaces and crafts curriculum meticulously aligned with Nepal’s national standards, specifically the CDC Science Curriculum for Grades 4-9 and Hamro Serofero for Grades 1-3.13 Karkhana’s ambitious goal is to deliver 2 million STEAM experiences to students by 2027. To date, it has collaborated with over 220 schools and extended its impact to students in more than two cities.13 The company strongly advocates for experiential learning, problem-solving skills, and critical thinking development among its students.13

Financially, Karkhana has demonstrated significant success in attracting investment. It has raised a total of $15.9 million across seven funding rounds, including Seed, Early-Stage, and a Grant (prize money).14 Its largest funding round to date was a $6.3 million Series A in December 2023, led by Arkam Ventures, with other notable institutional investors including Vertex Ventures (Singapore), Unitary Fund (United States), and SIG Venture Capital (Hong Kong).14

Karkhana’s ability to secure substantial funding, particularly from international institutional investors, indicates a growing recognition among both educators and global capital providers of the value of experiential, skill-based learning over traditional rote methods in Nepal. This significant foreign investment suggests confidence in Karkhana’s innovative pedagogical model and the broader potential for such approaches within the Nepalese market. The successful funding of Karkhana signals a maturing EdTech market in Nepal for specific niches, especially those offering scalable and innovative educational solutions. This trend suggests that while domestic funding sources might still be nascent, globally-minded ventures that address real educational challenges can attract foreign capital, potentially helping to alleviate the “funding gap” often observed for early-stage startups in the country.16 This also implies a positive reinforcing cycle: successful funding can validate a pedagogical approach, encouraging wider adoption by schools and inspiring more entrepreneurs to pursue similar models.

ECEC Innovation in Education

Established in July 2001, ECEC Innovation in Education Pvt. Ltd. is dedicated to enhancing the quality of Pre- and Primary School teaching across Nepal.17 The organization champions a child-centered educational philosophy, emphasizing practical activities and play as crucial learning methods for young children, in contrast to traditional rote learning.17 ECEC’s service portfolio includes intensive and practical short- and long-term Teacher Training Courses in Early Childhood Development (ECD), refresher courses for experienced educators, workshops for parents to understand modern teaching approaches, and consultation services for schools on curriculum development and material selection.17 They also facilitate the availability of diverse educational materials.17

The core objectives of ECEC are to increase the impact of culturally appropriate and child-friendly teaching techniques, promote the development and production of adequate teaching materials, and contribute to the nationwide development of the ECD curriculum.17 While the provided information details ECEC’s extensive operational scope and impact, specific funding sources or investors for ECEC Innovation in Education Pvt. Ltd. are not detailed in the available snippets. General discussions on “ECEC funding” in the research refer more broadly to Early Childhood Education and Care policies and grants, rather than direct company investments.18

ECEC, though not a direct “EdTech” company in the digital platform sense, addresses a critical human capital gap that directly influences the effective adoption and integration of any EdTech solution. The World Bank’s EdTech Readiness Index (ETRI) report highlights that the “Teachers” pillar in Nepal exhibits “low readiness due to the absence of standards, limited integration of ICT activities in the curriculum, and lack of support systems and assessments for ICT competences”.24 The report explicitly recommends empowering teachers through ICT competency frameworks and training.24 Therefore, ECEC’s work in foundational teacher training and curriculum development is a prerequisite for successful EdTech implementation, especially at early childhood and primary levels where hands-on and play-based learning are emphasized.17 This underscores that the success of EdTech in Nepal is not solely about technology deployment but heavily relies on developing the “human layer”—adequately trained and pedagogically prepared teachers. ECEC’s model, even without explicit digital products, is an essential component of the broader EdTech ecosystem by building teacher capacity and pedagogical readiness, thereby creating a more fertile ground for digital tools to be effectively utilized in classrooms. This suggests a need for integrated strategies that combine technology provision with robust teacher professional development.

Avyaas

Avyaas, founded in 2019 and based in Kathmandu, operates as an online exam preparation application.26 It offers specialized courses for a variety of competitive entrance examinations, including those for NEB (National Examination Board), MBBS (Bachelor of Medicine, Bachelor of Surgery), Engineering, KUMAT/CMAT (Kathmandu University Management Aptitude Test/Central Management Aptitude Test), and Loksewa (Public Service Commission exams).26 The platform emphasizes personalized learning experiences, providing access to over 50,000 practice questions, customized recommendations, and convenient offline viewing options.27 Avyaas is available as a free-to-download application, with access to premium content, such as question sets from top institutes, offered through a subscription plan.27 Tracxn reports Avyaas as an “unfunded company”.26

Avyaas addresses a highly specific and in-demand market niche within Nepal’s education sector: competitive exam preparation. Nepal faces a significant “brain drain,” with a substantial number of young people leaving the country daily in search of work or study opportunities abroad.16 High-stakes entrance exams are often critical gateways to better domestic higher education or international opportunities, making effective preparation a priority for many students. Avyaas’s focus on extensive practice questions and personalized learning caters directly to the exam-oriented academic culture prevalent in such competitive environments, potentially helping to mitigate the brain drain by improving domestic career and educational prospects. The company’s ability to operate and provide value in this niche, despite being reported as unfunded by Tracxn, suggests a strong organic user base driven by the intense competition for limited higher education and government job opportunities. This indicates a potential for profitability through a direct-to-consumer subscription model, serving a highly motivated segment of the student population, even without external venture capital funding.

Digital Nepal (edigitalnepal.com)

Digital Nepal, established in 2014, is a private company dedicated to providing “School Management Systems” and other ICT-based services to educational institutions across Nepal.28 Its core mission is to catalyze transformation, innovation, and revolution within the education sector by leveraging technology, specifically through the digitalization and systematization of data for effective management.28 The company asserts that it has successfully digitalized over 700 schools and colleges nationwide and claims to be the first company in Nepal to offer a top-tier information management system to educational institutions.28 With its head office in Kathmandu, Digital Nepal has expanded its presence with branches in Janakpur and Itahari.28

Digital Nepal has received notable recognition for its contributions, winning the Smart Urban Technology Challenge Award in 2018, presented by the Prime Minister, and the Best Startup ICT Award in 2019, awarded by the Education Minister.28

Digital Nepal’s work is crucial for building the administrative and operational backbone of educational institutions, which forms a foundational layer for any broader EdTech integration. By systematizing data and streamlining management processes, they create the necessary digital infrastructure for schools to adopt more advanced learning technologies effectively. The awards received from high-level government officials underscore the recognition of this foundational role. This highlights that EdTech in Nepal encompasses not only direct student learning platforms but also the underlying operational infrastructure of educational institutions. Companies like Digital Nepal are vital for preparing schools for a digital future, enabling smoother adoption of other EdTech solutions by reducing administrative burdens and providing a robust digital framework for data management. This implies a holistic view of EdTech development where administrative solutions are as important as pedagogical ones.

Other Noted Companies/Initiatives

Beyond these core EdTech providers, several other entities contribute to or are indicative of the broader tech and education ecosystem in Nepal:

• Khaalisisi: While primarily a waste management platform, Khaalisisi is recognized as a “game-changing digital platform” leveraging technology to solve real-world problems and is listed among “Top 10 Startups that Tech Professionals Should Watch Out for in 2025”.29 Its success underscores a general trend of tech innovation in Nepal that could indirectly influence or intersect with the EdTech sector.
• Prerana Cloud: This company is mentioned as contributing to making education more accessible through digital learning solutions.1 However, detailed information about its specific offerings or impact is not available in the provided sources.
• Leapfrog Technology: Recognized as one of Nepal’s largest and most successful globally-operating tech startups, its founder, Himal Karmacharya, aims to “put Nepal on the map”.12 While not explicitly an EdTech company, its success signifies the growing pool of tech talent and entrepreneurial spirit in Nepal, which could spill over into the EdTech domain.
• Nepal School of Entrepreneurship (NSE): This institution is a private business and design school dedicated to leadership and entrepreneurship, offering “Entrepreneurially-Oriented” and “Opportunity-Driven” programs.30 While it is an educational institution
  for entrepreneurship rather than an EdTech company itself, it plays a relevant role in nurturing future innovators who may contribute to the EdTech sector.
• General Tech Companies: Numerous general web and mobile app development companies in Nepal, such as Webtech Nepal, E-Signature Pvt. Ltd., Futurex Tech, AITC International, and Startups Realm Technology, are listed as providing services across various industries, including education.31 These firms primarily function as service providers rather than direct EdTech product companies.

Key Table: Prominent EdTech Companies in Nepal: Overview of Offerings and Impact

Company Name	Primary Focus	Core Offerings/Products/Services	Target Audience/Grades	Notable Achievements/Reach	Funding Status (as per available data)
EduTech Nepal	Foundational Digital Literacy & Infrastructure	Computer lab installations, “respected certificates” with exams, teacher training	267,643 students reached; 303 schools in 31 districts; 5,892 computers provided 5	250 labs installed (as of Mar 2024); Shree Jagadamba Secondary School lab installation (Nov 2024) 5	Supported by registered NZ Charity & Nepal NGO 6
MeroSiksha	Online Learning Platform	Notes, Videos, Quizzes, Past Paper Solutions/Guides, Flashcards, Expert Q&A	Class 5-12, Bridge Course, IOE/CEE, A-Levels 8	80,000+ students from 500+ schools 8; CFO won Global Student Entrepreneur Award Nepal 10	Unfunded (per Tracxn, but operates on subscription model) 9
Karkhana	Hands-on STEAM Learning	Hands-on learning experiences, maker spaces, curriculum design aligned with national standards	Grades 1-9 (Hamro Serofero, CDC Science Curriculum) 13	220+ schools collaborated; aims for 2 million STEAM experiences by 2027 13	$15.9M over 7 rounds; Series A led by Arkam Ventures 14
ECEC Innovation in Education	Pre- & Primary Teacher Training & Curriculum	Teacher Training Courses (ECD), refresher courses, parent workshops, school consultation, educational materials	Pre- & Primary School Teachers, Parents, School Leaders 17	Established 2001; focus on child-centered education 17	No specific funding details in snippets 18
Avyaas	Online Exam Preparation	50,000+ practice questions, customized recommendations, offline viewing	NEB, MBBS, Engineering, KUMAT/CMAT, Loksewa entrance exams 26	Largest online preparation application for multiple disciplines 27	Unfunded (per Tracxn) 26
Digital Nepal	School Management Systems	ICT-based information management systems, digitalization, data systematization	700+ schools/colleges digitalized 28	Won Smart Urban Technology Challenge Award (2018); Best Startup ICT Award (2019) 28	Private company, social enterprise 28

 

IV. The EdTech Ecosystem and Enabling Environment

The growth of Nepal’s EdTech sector is significantly influenced by a developing ecosystem comprising government policies, supportive incubators, and an evolving investment landscape.

Government Initiatives and Policies

The Government of Nepal has demonstrated increasing commitment to fostering entrepreneurship and digital education. A notable initiative is the Startup Enterprise Loan Programme, formally approved in 2024, which provides collateral-free loans ranging from Rs. 200,000 to Rs. 2 million at a minimal 3 percent interest rate.16 In the fiscal year 2081-82 (2024-25), the government allocated Rs. 1 billion for this program, leading to 661 startups securing loans, a nearly 300 percent increase in beneficiaries.32 Beyond direct funding, the government has launched the National E-Library Program to digitize educational resources and the Digital Nepal Framework, which aims to leverage digital technologies for improved access, enhanced learning outcomes, and innovation in teaching.3

Despite these commendable efforts, the World Bank’s EdTech Readiness Index (ETRI) report highlights significant policy gaps. It notes that “Teachers” and “Students” exhibit low readiness at the policy level due to the absence of standards, limited integration of ICT activities in the curriculum, and a lack of support systems and assessments for ICT competencies.24 Furthermore, the implementation of policies related to devices, connectivity, and digital resources shows limited development, with an absence of clear standards and support systems at the policy level directly impacting practical access and use.24 Only a small percentage of school principals report sufficient technical support or monitoring mechanisms for ICT resources.24

The government’s formal support for startups is a positive step, yet the broad definition of “startup” in the Industrial Enterprise Regulation, which includes businesses under 10 years old with annual revenue below Rs. 150 million and “self-declared innovation and use of technology,” risks diluting the focus.32 This broadness could lead to lumping high-growth, scalable ventures with small businesses or cottage industries, potentially misallocating resources and hindering the identification and support of truly disruptive innovations. This situation underscores a need for clearer, more specific criteria for what constitutes innovation and technology in the context of high-growth startups.

Moreover, the ETRI report identifies a significant discrepancy between “de jure” (defined by government) and “de facto” (understood on the ground) policies across most pillars, with “teachers” having the lowest de jure score.24 This misalignment between policy intent and practical implementation, particularly concerning teachers and digital educational resources, significantly impedes the effective integration of EdTech. It indicates that while policies may exist on paper, their translation into tangible support systems and practical application on the ground is lacking, necessitating better alignment and robust execution mechanisms.

Incubators and Accelerators

A growing network of incubators and accelerators is playing a crucial role in nurturing early-stage EdTech businesses in Nepal. TechX, a business accelerator program implemented by Accelerator Nepal and funded by the Swiss Agency for Development and Cooperation (SDC), specifically targets digital technology innovators in the health and education sectors.33 The program offers business development services, technical assistance, and potential investment support over an 8-month period.33

Higher Education Institutions (HEIs) are emerging as key players in fostering entrepreneurial spirit. Kathmandu University (KU) provides a notable example with its Kathmandu University Business Incubation Center (KUBIC), established in 2014.34 KUBIC aims to facilitate and support high-potential ideas from students, researchers, and individual inventors into viable products and businesses. It currently incubates 24 startups, offering workspace, office facilities, and counseling/training to help them develop, sustain, and prosper.34 Similarly, the Uniglobe Entrepreneurship Development Center (UEDC) established the Uniglobe Incubation Center (UIC) in 2018 as a collaborative effort with Antarprerana.36 UIC’s primary goal is to support Nepal’s entrepreneurial ecosystem by providing mentorship, co-working space, seed funds, networking opportunities, and access to investors.36

These incubation and acceleration initiatives are vital for nurturing early-stage businesses and developing entrepreneurial skills in a nascent market. They provide critical support mechanisms that help aspiring entrepreneurs materialize innovative ideas into real-time businesses, offering guidance and resources to navigate the challenging initial stages of development. However, despite these efforts, the overall support infrastructure, both public and private, needs to expand at a faster pace to keep up with the ambition, ingenuity, and sheer grit of Nepal’s young entrepreneurs, especially in light of the significant “brain drain” challenge facing the country.16

Investment Landscape

Nepal’s tech ecosystem has seen increasing investment, attracting over $40 million since 2020.1 Karkhana’s success in raising $15.9 million over seven funding rounds, including a $6.3 million Series A in late 2023 from institutional investors, exemplifies the potential for high-growth EdTech ventures to attract significant capital.14

Despite these positive signals, the private equity and venture capital (VC) market in Nepal is still in its nascent stages compared to neighboring giants like India.16 There remains a significant “funding gap,” particularly at the very early seed stage, beyond government loans and a few larger funds.16 This reliance on limited funding sources suggests a need for more diversified capital. The market currently lacks sufficient impact investors who are willing to support vital social and green startups with potentially longer timelines for returns.16 This absence of varied funding sources can hold back the development of entire sectors critical for Nepal’s sustainable future.

Key Table: Government Support and Ecosystem Enablers for EdTech in Nepal

 

Initiative/Entity	Type of Support	Key Objectives	Impact/Reach (as per available data)
Startup Enterprise Loan Programme	Government Loan Scheme	Provide collateral-free loans (Rs. 200,000 – Rs. 2M) at 3% interest to foster skill development and business growth for Gen Z entrepreneurs 16	Rs. 1 billion allocated (FY 2081-82); 661 startups secured loans (nearly 300% rise) 32
National E-Library Program	Government Initiative	Digitize educational resources and make them accessible nationwide 3	Aims to enhance digital literacy among students and educators 3
Digital Nepal Framework	Government Policy	Leverage digital technologies to improve access to education, enhance learning outcomes, and foster innovation 3	Prioritizes integration of technology in education 3
TechX (Accelerator Nepal)	Business Accelerator Program	Accelerate innovations to transform health & education through digital technologies 33	Provides business development, technical assistance, potential investment support; selects 8 businesses 33
Kathmandu University Business Incubation Center (KUBIC)	University Incubation Center	Facilitate and support high-potential ideas into products/businesses; educate entrepreneurs 34	Established 2014; currently incubating 24 startups 34
Uniglobe Incubation Center (UIC)	University Incubation Center	Materialize innovative ideas into real-time businesses; support entrepreneurial ecosystem 36	Established 2018; offers mentorship, co-working space, seed fund, networking, access to investors, prototyping 36

 

V. Challenges and Opportunities in Nepal’s EdTech Sector

Despite the promising growth and supportive ecosystem, Nepal’s EdTech sector faces significant challenges that also present unique opportunities for innovation and development.

Infrastructural Gaps

A primary impediment to widespread digital instruction is the lack of a robust technological foundation in many public schools, particularly in rural Nepal.2 Existing computer laboratories often operate with outdated hardware, characterized by less than 4GB of memory and slow processors.7 Compounding this, electricity outages are common, and internet access remains inconsistent or entirely unavailable in many areas.2 The World Bank’s ETRI report confirms that while two-thirds of schools have internet access, student access and internet quality are poor, with only 20% reporting sufficient devices connected to the internet and less than 30% indicating sufficient bandwidth or stability.24

These infrastructural limitations directly constrain the scalability and effectiveness of digital instruction. The prevalence of unreliable electricity and poor internet connectivity means that many online-only EdTech solutions cannot function reliably in large parts of the country. This necessitates a strategic focus on solutions that can operate effectively in low-resource environments, emphasizing offline capabilities and robust hardware that requires minimal maintenance.

Policy and Regulatory Hurdles

Nepal has a stated policy for integrating information and communication technology (ICT) in education, aiming to align its schooling with global practices.37 However, a significant gap persists between government policy and its practical implementation, particularly regarding the provision of ICT infrastructures and teacher training.37 The World Bank ETRI report elaborates on this, highlighting low policy readiness for teachers and students, stemming from an absence of competence standards, limited integration of ICT activities in the curriculum, and a lack of support systems and assessments for ICT competencies.24 Furthermore, there is a noted absence of clear standards, guidance, and support systems at the policy level for digital devices, connectivity, and digital educational resources (DERs), which negatively impacts their accessibility and utilization in practice.24

The discrepancy between policies defined by the government (“de jure”) and their understanding and implementation on the ground (“de facto”) is a critical barrier to systematic EdTech integration.24 This misalignment indicates that even with stated intentions, the practical mechanisms for deploying, maintaining, and effectively utilizing EdTech tools are often insufficient. This necessitates a concerted effort to not only formulate comprehensive policies but also to ensure their practical translation through detailed implementation strategies, adequate funding, and robust monitoring and accountability mechanisms.

Human Capital Development and Brain Drain

The effective adoption of EdTech is heavily reliant on the digital literacy and pedagogical skills of teachers. There is a pressing need for the expansion of pre-service teacher education programs with a strong emphasis on digital literacy, content knowledge, and instructional design.7 Additionally, decentralized regional training centers are required to provide in-service upskilling opportunities across all provinces, supported by rural service incentives like housing and professional development stipends.7

A significant long-term threat to Nepal’s innovative economy, including the EdTech sector, is the “brain drain”—the continuous exodus of talent.16 As of 2022, approximately 1700 young people were reportedly leaving Nepal every day in search of work abroad.16 This outflow deprives the country of its most valuable resource: skilled talent necessary for sustained EdTech development, innovation, and adoption. This trend underscores the critical need for policies and initiatives that not only develop local talent but also create compelling opportunities and incentives to retain skilled professionals within Nepal.

Market Dynamics

The scaling of tech startups in Nepal faces challenges in expanding their customer base beyond the country’s borders.1 Factors such as relatively low purchasing power and limited digital literacy among a significant portion of the population make it difficult for EdTech companies to achieve rapid and widespread adoption.1 These market dynamics necessitate business models that prioritize affordability and accessibility, often focusing on localized content and solutions that can function effectively even with basic digital skills.

Opportunities

Despite these challenges, Nepal’s EdTech sector is ripe with opportunities:

• Offline-Capable Solutions: The prevalence of unreliable electricity and inconsistent internet connectivity creates a strong demand for EdTech solutions that do not require constant online access. A case study involving an offline-capable AI assistant, trained on the Grade 10 Science and Computer Science curriculum, demonstrated encouraging results in low-resource environments.2 This tool, running on outdated hardware without external servers or internet, allowed students to explore questions independently, proving that advanced educational technology can be deployed without major financial or infrastructural overhauls.7 This highlights a significant opportunity for developing and scaling similar solutions tailored to local constraints.
• Multilingual Content Expansion: For equitable access and effective learning, expanding digital instructional materials into Nepali and regional languages is essential.2 This addresses the diverse linguistic landscape of Nepal and ensures content relevance for a broader student population.
• Leveraging Mobile Penetration: The widespread availability of mobile cellular telephone subscriptions, often exceeding one per person, indicates a substantial base of personal devices that can be leveraged for learning.38 This offers a practical pathway for mobile-first EdTech solutions to reach a broad audience, even in areas with limited dedicated school infrastructure.
• Growing Government Commitment: The recent approval of the Startup Support Policy and increased education funding signal a progressively supportive government environment.16 While implementation challenges persist, the declared intent to foster entrepreneurship and invest in education provides a foundation for future growth and collaboration.

Key Table: Challenges and Opportunities in Nepal’s EdTech Sector

Category	Challenges	Opportunities
Infrastructure	Outdated hardware (e.g., <4GB RAM, slow processors) 7	Develop and deploy offline-capable EdTech solutions 2
	Inconsistent/unavailable internet, common electricity outages 2	Prioritize robust hardware and low-resource solutions 7
	Poor internet quality (bandwidth, stability) 24	Leverage high mobile cellular telephone penetration for mobile-first solutions 38
Policy & Regulation	Gap between policy and practical implementation of ICT in education 37	Establish comprehensive EdTech strategies with clear implementation plans 24
	Low policy readiness for teachers & students (lack of standards, support) 24	Define ICT Competency Frameworks for teachers and students 24
	Absence of standards/guidance for devices, connectivity, DERs 24	Improve monitoring and support systems for ICT infrastructure 24
Human Capital	Need for expanded teacher digital literacy and instructional design training 7	Develop decentralized regional training centers and provide rural incentives 7
	Significant “brain drain” (1700 youth/day leaving in 2022) 16	Create compelling domestic opportunities and incentives to retain talent 16
Market Dynamics	Difficulty scaling customer base beyond domestic borders 1	Focus on localized and culturally relevant content 2
	Low purchasing power and limited digital literacy 1	Develop affordable and accessible business models (e.g., subscription-based, freemium) 9
Ecosystem Support	Funding gap, especially at early seed stage 16	Attract diversified capital, including impact investors 16
	Bureaucracy and regulatory hurdles 16	Streamline regulations and foster a more conducive business environment 16
Pedagogy	Traditional rote learning methods 13	Promote hands-on, experiential, and problem-solving approaches (e.g., STEAM) 13

 

VI. Recommendations for Sustainable EdTech Growth

To foster sustainable growth and maximize the transformative potential of EdTech in Nepal, a coordinated and multi-faceted approach is essential. Based on the analysis of current companies, the ecosystem, and identified challenges, the following recommendations are put forth:

• Establish Comprehensive Policies and EdTech Strategies: The Ministry of Education, Science and Technology (MoEST) should prioritize the development of clear and comprehensive EdTech policies that articulate problems and outline actionable solutions.24 These policies must be accompanied by detailed implementation strategies, supported by dedicated technical teams, sufficient funding, political endorsement, and robust monitoring and accountability mechanisms. Leveraging existing frameworks, such as the World Bank’s EdTech Toolkit for Remote Learning, can help consolidate and strengthen current EdTech policies.24 This will ensure that policy intent translates effectively into practical outcomes across all pillars of the education-technology ecosystem.
• Empower Teachers in the Use of ICT: Despite high teacher confidence, the low utilization of ICT in teaching points to a critical lack of supporting policies and infrastructure.24 It is crucial to define and adopt a national ICT Competency Framework for teachers, guiding their use of digital technology for professional practice, curriculum delivery, and developing students’ digital competencies.24 Training programs must be aligned with this framework, providing practical skills for teaching and lesson planning. Implementing formal evaluation or monitoring mechanisms will assess progress and inform tailored training and support. These efforts must be complemented by ensuring reliable access to devices, consistent connectivity, and relevant digital resources.24
• Define and Integrate Expected ICT Skills for Students into the Curriculum: An official ICT competency framework for students is necessary to outline the required digital knowledge and skills across all grades and subject areas.24 These skills should be integrated into the national curriculum, moving beyond basic computer functions to encompass accessing, using, and creating information.24 A comprehensive evaluation policy and assessment plan for students’ digital skills should be defined and implemented to measure proficiency. Enabling digital infrastructure and clear guidance should facilitate more advanced and creative use of digital technologies for learning.24
• Improve Practices and Policies Regarding Digital Devices: Enhanced efforts are required to ensure the adequacy, availability, and functionality of digital devices in schools. This includes providing assistive devices for learners with special needs to promote inclusive education.24 The MoEST should continue and strengthen its technical assistance systems for device training, monitoring, maintenance, and repositioning to ensure ICT devices are suitable for effective usage and learning.24
• Enhance Connectivity: The quality of internet connectivity remains a major challenge, particularly in rural schools.24 Continued efforts are needed to provide quality connectivity to all public schools, focusing on improving bandwidth, speed, and stability. While connectivity is being improved, EdTech solutions that do not require constant internet access (offline options) should be prioritized and scaled.24 Implementing an appropriate planning and monitoring system is crucial to identify and address connectivity issues systematically.24
• Leverage Digital Education Resources (DERs): DERs offer a powerful means to alleviate resource shortages, especially for inclusive education, indigenous language-based resources, and gender-responsive materials.24 Challenges associated with DERs at both policy and practice levels must be addressed. This involves establishing clear quality standards and ensuring the alignment of DER content with the national curriculum to safeguard educational quality. Policies should promote inclusive and equitable access to quality resources, and training should be provided to principals and teachers to increase their knowledge and effective use of DERs. Strategies for DER promotion and use should also consider the limited availability of connected devices and prioritize offline-friendly resources.24
• Address Inequalities by Prioritizing Disadvantaged Schools: To reduce existing gaps in EdTech access and quality, greater effort and resources must be directed towards rural zones and public schools.24 Policies should ensure that these schools receive equitable, if not preferential, attention in terms of connectivity, device support, and teacher training to help them catch up and benefit fully from digital education opportunities.24
• Foster Innovation and Diversified Investment: To overcome the early-stage funding gap and support the growth of innovative EdTech companies, efforts should be made to attract diversified capital, including impact investors who align with social and educational goals.16 Streamlining bureaucracy and regulations will also create a more conducive environment for startups to flourish, reducing obstacles for entrepreneurs and encouraging investment.16

VII. Conclusion

Nepal’s EdTech sector is a dynamic and burgeoning field, characterized by a growing number of innovative companies and increasing digital penetration across the country. Key players like EduTech Nepal, MeroSiksha, Karkhana, ECEC Innovation in Education, Avyaas, and Digital Nepal are addressing diverse educational needs, ranging from foundational digital infrastructure and teacher training to comprehensive online learning platforms and specialized exam preparation tools. The increasing internet penetration and a supportive, albeit evolving, government policy framework, coupled with the emergence of incubators and accelerators, are creating a fertile ground for further development.

However, significant challenges persist, particularly in bridging infrastructural gaps such as unreliable electricity and inconsistent internet access in rural areas. Policy implementation discrepancies, a nascent investment landscape with a notable funding gap, and the pervasive issue of “brain drain” also pose considerable hurdles. Despite these obstacles, the challenges themselves present unique opportunities for innovation, especially in developing offline-capable solutions, expanding multilingual content, and leveraging the widespread mobile phone penetration.

Sustainable growth in Nepal’s EdTech sector hinges on a coordinated, systemic approach. This involves not only continued technological deployment but also robust policy formulation and implementation, comprehensive teacher empowerment through digital literacy training, strategic investments from diverse sources, and a steadfast commitment to addressing educational inequalities. By focusing on these interconnected areas, Nepal can harness the full potential of education technology to transform its educational system, empower its youth, and contribute to broader national development. The future of education in Nepal is inextricably linked to its digital transformation, demanding collaborative efforts from all stakeholders to realize its promising vision.

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