Upaya launches 'Upaya Warehousing,' announces its financial closure

KATHMANDU: Upaya, a leading logistics company enabled by technology, has unveiled plans to launch a third-party logistics (3PL) warehousing project in Kathmandu. Addressing the significant gap in technology and infrastructure in Nepal’s logistics sector, Upaya Warehousing will develop its first 3PL warehouse on over 18 ropanis of land (approximately 100,000 sq ft) at Sanga, Kavrepalanchok, near Nepal Police School and adjacent to Arniko Highway. Construction is scheduled to begin in April 2025, with completion expected by the end of 2026.

The project, with a total estimated cost of Rs 1.2 billion, represents a substantial investment in Nepal’s logistics infrastructure. During an event held on Sunday, Upaya announced the financial closure of Rs 950 million in consortium debt financing, led by Citizens Bank International and supported by Machhapuchchhre Bank. Equity investment for the initiative will be secured from Dolma Impact Fund II and other investors. Ganesh Pokharel, CEO of Citizens Bank International, the lead financier of the consortium, commented, “There is significant potential for warehouse infrastructure in Nepal. This project will serve as a milestone in advancing new avenues within the infrastructure sector.”

Upaya’s upcoming 3PL warehouse will offer a state-of-the-art multi-client storage and handling facility, accommodating businesses across diverse sectors, including Fast Moving Consumer Goods (FMCG), Fast Moving Consumer Durables (FMCD), e-commerce, quick-commerce, retail chains, lifestyle goods (such as apparel, shoes, and beauty products), electronics, white goods, and auto-parts. Featuring 45,000 sq ft of built-up space and a total storage capacity exceeding 100,000 sq ft, the facility will incorporate Grade A pre-engineered steel structures designed to endure seismic activity. Key features include high-density racking (HDR), multi-tier shelving, and built-to-suit (BTS) facilities for anchor clients. The warehouse, designed by the renowned Indian company Corescape Design LLP, will integrate sustainable technologies such as green energy, waste management systems, and rainwater harvesting.

At the event, Ranjeev Shrestha, Co-founder and Director of Upaya, emphasised the importance of efficiency and innovation in logistics, stating, “Nepal’s logistics costs account for 20% of GDP due to inefficiencies and inadequate infrastructure. Upaya Warehousing aims to lead by example in reducing costs through technology and infrastructure. We plan to develop additional warehouses in other cities to expand these benefits.”

The introduction of 3PL warehousing by Upaya is expected to revolutionise Nepal’s logistics and supply chain industry, enhancing operational efficiency and reducing logistical costs for businesses.

Santosh Koirala, CEO of Machhapuchchhre Bank and President of Nepal Bankers' Association (NBA), addressed the importance of forward-thinking projects during the event. He remarked, “Amid current challenges of surplus investible funds and limited viable projects, such innovative initiatives will undoubtedly contribute to Nepal’s overall economic development.”

Upaya’s 3PL warehouse will deliver scalable logistics solutions by bundling storage, inventory management, invoicing, distribution, and transportation services. Co-founder and Managing Director Suman Rayamajhi added, “This 3PL warehouse enables our customers to focus on growing their businesses while outsourcing the complexities of logistics management.”

Key attendees at the event included representatives from Dolma Impact Fund, Pragati Infra Solutions—one of India’s largest developers of industrial and logistics parks—logistics experts from Nepal and India, officials from development financial institutions, investors, and prospective Upaya customers.

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