Kathmandu: To strengthen Nepal’s agribusiness financing ecosystem and bridge critical investment gaps, Team Ventures, in collaboration with the FCDO-funded CASA Programme, implemented by Swisscontact Nepal, and supported by the Nepal Private Equity Association (NPEA), hosted a high-impact workshop titled ” Private Equity and Venture Capital (PEVC) Investment Strategies in Agribusiness: Lessons from India” on February 12, 2025.
Agriculture in Nepal stands at a crossroads—while the sector dominates the economy, structured
investments remain scarce. Despite increasing government funding, agriculture’s contribution to GDP is declining, signaling the need for better investment strategies beyond traditional resource allocation. With a 3.05% projected annual growth rate, agriculture presents untapped potential, yet financial constraints and the absence of structured investment vehicles have stifled large-scale capital deployment. As per the FNCCI, the private sector contributes over 95% of agriculture’s Gross Value Addition (GVA), but most investments remain small-scale, limiting transformational impact. Meanwhile, data from the NPEA shows that since 2012, only 3.9% of Nepal’s $101 million PEVC investments have gone into agribusiness, revealing a stark funding gap.
To address these challenges, the workshop provided a structured platform for key stakeholders in Nepal’s PEVC ecosystem to engage in meaningful discussions on investment readiness, market linkages, and financing opportunities in agribusiness. The workshop focused on overcoming investment barriers in agribusiness by drawing insights from India’s experience with PEVC models. Attendees learned from Aavishkaar Group’s $500 million investment experiences in Indian agribusinesses, with case studies highlighting investment challenges such as funding scale and exit strategies, as well as sectoral diversity.The event also identified opportunities for collaboration between Nepali and Indian investors to strengthen the PEVC ecosystem. Experts from Intellecap and Aavishkaar Capital shared insights on key factors driving agribusiness growth in India, including the roles of financiers and supportive policy frameworks. They showcased successful investment models and strategies that Nepal can adapt to strengthen its PEVC ecosystem, underscoring the need for tailored financing solutions to unlock agribusiness potential and drive sustainable growth for smallholder-linked businesses.
Mr. Dhruba Timilsina, Chairperson of the Nepal Private Equity Association, underscored the need to bring investment expertise into Nepal’s agribusiness sector. He stated, “For PEVC investment to thrive, Nepal must create an enabling environment with investment-ready agribusinesses, strong governance, de-risking mechanisms, and supportive policies. Learning from India’s investment strategies could help us integrate small farmers into sustainable value chains and design effective financial structures tailored to Nepal’s unique context.”
Manish Bikram Shah, Country Manager for the CASA Programme, emphasized CASA’s commitment to fostering sustainable investment in Nepal’s agribusiness sector, expressing pride in supporting the workshop. He stated, “While agribusinesses have immense potential, limited access to finance and capital has constrained their growth. By bridging investment gaps and catalyzing connections, we aim to unlock opportunities for agri-SMEs and smallholder farmers. Ultimately, the long-term responsibility for driving investment and resilience lies with private equity and venture capital players.”
The workshop brought together a diverse group of private equity investors, representatives from the Securities Board of Nepal, Private Equity fund managers, agribusiness entrepreneurs, investors, and sectoral experts to explore ways to unlock capital, enhance investor confidence, and drive innovation in Nepal’s agribusiness landscape.
“Harnessing Nepal’s agribusiness potential isn’t about competition: it’s about collaboration. PEVC and alternative financiers must unite to bridge investment gaps and drive impactful growth. At Team Ventures, we’re not just investing; we’re building an ecosystem for scalable, high-return agribusiness. Let’s collaborate and transform this sector together,” said Mr. Tenzin Sonam Gonsar, CEO of Team Ventures, in his closing remarks, reflecting on the transformative potential of structured investment in agribusiness. “The future of agribusiness is not about solely chasing the end product; it is about strengthening the entire value chain, from seed to scale,” added Krishna Babu Bhattarai, Investment Analyst of Team Ventures, reinforcing the importance of investing in the full agribusiness ecosystem to ensure long-term growth and success.
The workshop was a crucial step in demonstrating how PEVC investments can unlock substantial value in agriculture, with strong returns proven in India. With the right enabling environment, Nepal is well-positioned to become a key hub for agribusiness investment, driving economic growth and providing long-term benefits to smallholder farmers nationwide .
