Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Nepal

Nepal

The total transaction value in the Crowdlending (Business) market market is expected to reach US$0.0 in Nepal by 2024.
When compared globally, China leads with a transaction value of US$15,970m in 2024.
In Nepal, CrowdLending for capital raising is gaining traction among small businesses seeking alternative financing options in the challenging economic landscape.

Key regions: China, United Kingdom, Brazil, Israel, India

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Analyst Opinion

The CrowdLending (Business) market in Nepal has been experiencing significant growth and development in recent years.

Customer preferences: One of the main reasons for the growth of the CrowdLending (Business) market in Nepal is the increasing demand for alternative sources of financing among small and medium-sized enterprises (SMEs). Many SMEs in Nepal face challenges in accessing traditional bank loans due to stringent lending criteria and a lack of collateral. CrowdLending platforms provide a viable alternative for these businesses to raise funds by connecting them directly with individual lenders.

Trends in the market: The CrowdLending (Business) market in Nepal has witnessed a surge in the number of platforms offering lending services to businesses. This trend can be attributed to several factors. Firstly, the advancement of technology and the widespread use of the internet have made it easier for businesses and lenders to connect and transact online. This has significantly lowered the barriers to entry for new players in the market. Secondly, the success stories of businesses that have successfully raised funds through CrowdLending platforms have generated positive word-of-mouth and increased awareness among both borrowers and lenders. This has further fueled the growth of the market.

Local special circumstances: Nepal's economy is predominantly made up of small and medium-sized enterprises (SMEs), which account for a significant portion of the country's GDP. These businesses often struggle to secure financing from traditional banking institutions due to various reasons, including a lack of collateral and limited credit history. CrowdLending platforms have emerged as a viable solution for these businesses to access the funds they need to grow and expand. Additionally, the government of Nepal has recognized the importance of SMEs in driving economic growth and has implemented policies and initiatives to support their development. This has created a favorable environment for the growth of the CrowdLending (Business) market in the country.

Underlying macroeconomic factors: The development of the CrowdLending (Business) market in Nepal is also influenced by macroeconomic factors. Nepal has experienced steady economic growth in recent years, which has led to an increase in the number of businesses seeking financing to expand their operations. Additionally, the country has a large and growing young population, which is increasingly tech-savvy and open to new financial solutions. This has created a conducive environment for the growth of the CrowdLending (Business) market. In conclusion, the CrowdLending (Business) market in Nepal is experiencing significant growth and development due to the increasing demand for alternative sources of financing among SMEs, advancements in technology, positive word-of-mouth, and favorable government policies. These factors, combined with steady economic growth and a young population, have created a conducive environment for the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.