Kathmandu – According to the founder of Foodmandu, while the company has not faced major challenges in accessing financial services from banks and financial institutions, it has encountered several practical difficulties, particularly due to poor coordination among government agencies.

Reflecting on his journey since the company’s inception, the founder noted:

“From my experience, only around 20% of the challenges stem from policy-related issues, while a significant 80% are due to practical problems. These issues are especially acute in the early stages of a company when even small matters can become major obstacles.”

Foodmandu, which began operations in 2013, initially faced numerous hurdles. Over time, however, conditions have gradually improved. One of the key difficulties was obtaining foreign direct investment (FDI) approval, for which the company had to register with multiple entities the local ward office, the Company Registrar’s Office, and later the Department of Industry. Initially, they were unaware of the requirement to register under the industry category in order to access FDI.

“Even after registration and obtaining approvals, valuation issues arise. When a company receives investment, a specific valuation is used, but when someone tries to sell their shares, questions about having the same valuation are raised,” he added. “Although this is well understood in the market, officials are often hesitant to make decisions due to ambiguities in the policy framework, such as the lack of clarity on differential share pricing.”

While coordination with banks has not posed serious problems, dealing with government institutions remains cumbersome and uncoordinated.

Foodmandu was started by the founder and his business partner with their own investment. When the company launched its services in 2010, the market was not ready for such innovation. Gradual market growth followed, and the business was sustained using internal resources for the first 5 to 6 years. Only after 2017 did the company seek external investment, with significant FDI secured by 2023.

The founder emphasized that capital is essential for operating any startup:

“No startup can scale without funding. Banks often perceive innovative startups as high-risk, which is understandable. But for the startup ecosystem to thrive, success stories must be shared to inspire new entrepreneurs.”

He further remarked that current policies seem to lack a vision for motivating or supporting startups:

“Starting a business is just the beginning. The bigger the business, the bigger the challenges. What’s needed is not just policy for operation, but also policy for inspiration and support.”

(Based on the insights shared by the Founder of Foodmandu during the second session of the “Banking Discourse 2025” titled “Challenges in SME Credit Expansion: Innovative and Established Solutions and Our Preparedness”)