Vidya Sagar Gyanpeeth was founded in 2004 by a husband and wife team, Rajib and Radhika Thapa. It initially accepted 15 pupils. There are presently eight teachers and 109 pupils from nursery grade to grade 8. Classes take place in four class rooms and outside in the schoolyard, though this can be extremely difficult during the monsoon season.

Attached to the school is a boarding hostel for 40 pupils, the principals, and three female teachers. The school is privately run and funded entirely by donations from parents and NGOs. Orphans and children whose parents cannot afford to pay are educated free of charge. The school is non-denominational and instruction is through English.

The school year starts in the second week of February and ends in the first week of December.