Nepal Tea Collective (previously called Nepal Tea), a U.S.-based and immigrant-owned public benefit corporation, is on a mission to disrupt the tea industry and elevate teas and tea farmers from Nepal. They’re currently inviting their customers, the impact-conscious public and members of the tea industry to become co-owners of the company. The company recently launched an equity crowdfunding campaign through Wefunder, where anyone can invest for as little as $250 and become an owner in the business.
“We all know that the tea industry has not been fair to the primary producers though tea is the most popular beverage after water,” said Nishchal “Nish” Banskota, a second-generation tea producer and founder and CEO of Nepal Tea Collective. “I aim to create the most impactful tea company that works for not just the shareholders but all stakeholders. Therefore, to legally hold ourselves accountable to this mission, we converted to a public benefit corporation in January 2022.”
Banskota explained that being a collective allows them to work with multiple tea farms in Nepal and create a collective identity of Nepali teas globally. “We are now taking this one step further by allowing all of our customers or any tea lover around the world to become co-owners of the collective with as little as $250, truly making it a company that is governed by its entire stakeholders.”
(Photo: Courtesy of Nepal Tea Collective)
The World Has Been ‘Sleeping’ on Nepali Teas
According to Nepal Tea Collective, the world has been “sleeping” on Nepali teas because the country itself is sandwiched between two tea giants – India and China. Yet, Nepal produces some of the finest teas in the world and more than 80 percent of its teas are exported to be rebranded. Nepali teas and their unique flavors lose their identity in the global market as it goes through numerous middlemen. This not only hinders Nepal from ever making its own geographical identity but also severely depresses the agricultural farmers. Traders and middlemen make millions while the Nepali farmers are left with pennies.
“There are several reasons why tea industry leaders should invest in us, but the most important one is to allow tea industry to thrive and innovate in the most ethical way,” explained Banskota. “As an industry, we have been talking about the need for traceability and transparency for a while, and we’re now building a proprietary mechanism to set the highest standards in the industry by leveraging technology. In essence, we’re re-inventing the way tea is sold around the world and making it fair for all the stakeholders in the tea supply chain while creating a highly profitable business. The tea industry leaders can obtain amazing monetary returns and a significant impact by choosing to invest in us.”
Nepal Tea Collective brings the freshest teas – organically grown and packed at origin in Nepal – to the United States and worldwide. Through rigorous work and first-hand collaboration with the farmers, Nepal Tea Collective has been shaping Nepali teas in the global market. The teas that they serve are traceable via QR codes, providing consumers with key information about every single individual involved – from who planted the sapling to who packed their product.
(Photo: Courtesy of Nepal Tea Collective)
Overall, Nepal Tea Collective said it’s cutting out the middlemen and working with the farmers directly to give underappreciated tea makers a platform to directly interact and connect with global customers, and the company has been making leaps to change the way Nepali teas are perceived.
Their attempt to bring forth the invisible Nepali farmers to the front of the global market has been featured and lauded in the New York Times and Forbes magazine. In fact, the Nepali orthodox teas that Nepal Tea Collective offers have been voted “Top 10” among 100+ global brands and won multiple national and international tea awards.
Originally established in 2016 as a Limited Liability Company (as Nepal Tea), the company has grown and shifted into a Public Benefit Corporation (as Nepal Tea Collective). To date, thousands of customers have been served worldwide. They’ve also planted 2,000 tea saplings (and counting) in Nepal.
“It isn’t just teas that Nepali farms can share with the world,” said Banskota. “There are so many more local herbs and spices that could benefit not just the farmers but the global food culture as a whole.”
(Photo: Courtesy of Nepal Tea Collective)
Wefunder Campaign Targets US$600,000 Goal
The Wefunder campaign will run through Nov. 16, and Nepal Tea Collective said it hopes to raise US$600,000 to expand its reach. Their equity crowdfunding effort, with support from several investors, has already hit more than US$180,000.
With the money raised, their plans include expansive product development that can better represent Nepali flavors, working with talented people to better their marketing strategies, as well as an immersive tea tourism experience in Nepal for their global customers. Their investment pitch also promises a tentative five to eight times return within the first five years, at least 15,000 farmers out of poverty, and 100,000 tea saplings planted.
“We are honored and very thankful to have such a response so far,” shared Banskota. “However, this is just the beginning, and I am humbled to know that tea drinkers all around the world understand the problem and want to be a part of the solution. Nepal Tea Collective started because of the power of the crowd of amazing tea people around the world [through the initial Nepal Tea Kickstarter campaign in 2016], and it sustains because of that, and now is the time to thrive because of the power of the crowd. I firmly believe in the mission of Wefunder as a platform, as well to democratize investing, and we want all tea drinkers regardless of the income differences be able to produce great returns and significant impact by investing on us.”
The Future for Nepal Tea Collective
What does the future hold for Nepal Tea Collective? Banskota said that in the short-term future, they plan to build a fulfillment facility in Nepal that allows majority of the small-holder farmers to centralize collection, storing, packing and exporting. “We will also be furthering our cultivation work to include highly demanded botanicals,” he said.
In the long term, the company envisions being the solution and a platform for every tea/botanical small holder producer in Nepal and beyond, to sell their products and earn a dignified living by doing so.
“I really believe Nepal Tea Collective can uplift a million farmers from poverty within my lifetime while exponentially expanding the potential of Nepali flavors,” Banskota concluded. “I’ve seen tea change the lives of hundreds of people, so I know this can be done. We only need support from people who know the unrealized promise of teas and herbs from Nepal.”
To learn more about Nepal Tea Collective, visit NepalTeaCollective.com. To learn about or participate in the WeFunder campaign, visit Wefunder.com/NepalTeaCollective.
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