Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU – In a strategic leap toward Nepal’s digital finance future, the Khetan Group, one of the country’s most influential business houses, is set to acquire a 20% equity stake in leading payment system operator FonePay Payment Services Ltd. Sources confirm that the deal, already in motion, awaits final approval from the Nepal Rastra Bank (NRB).
The move marks a significant shift in the investment portfolio of business magnate Rajendra Khetan, who recently exited holdings in Gorkha Brewery and Carlsberg India, creating substantial liquidity for new-age ventures. With this calculated transition from FMCG and beverages to fintech, Khetan is betting big on Nepal’s digital payment revolution.
According to sources familiar with the matter, an MoU was signed between Khetan Group and F1Soft Group—the parent company of Fonepay—about two months ago. The agreement was formally submitted to NRB for regulatory approval, and share acquisition proceedings will commence as soon as the central bank gives the green light.
“We’ve submitted the investment file to the central bank following a Non-Disclosure Agreement in our MoU. While we can’t speak in detail yet, the strategic intent is clear—Khetan Group is ready to fuel Nepal’s digital finance ecosystem,” a close source within the Khetan Group confirmed.
The investment, valued around at Rs 1.4 billion, will be structured through Nepal Infrastructure Investment Fund and Nepal Impact Growth Equity Fund-I, both operated under Global Equity Fund, which will manage and route the capital.
“This is not just a financial investment. It’s a long-term commitment to reshape Nepal’s digital economy and empower cross-border fintech innovation,” said a source from Global Equity Fund. The source emphasized the role this partnership could play in building a digitally integrated South Asian payment corridor.
FonePay, licensed by NRB as a Payment System Operator (PSO) since February 9, 2020, currently holds a paid-up capital of Rs 505 million. In FY 2080/81 (2023/24), the company posted a net profit of Rs 180 million, a sharp rise from Rs 19.6 million in the previous fiscal year.
FonePay is also pushing boundaries beyond Nepal, having already launched cross-border QR payments through India’s Unified Payments Interface (UPI) and signed regional agreements with Sri Lanka’s LankaPay and South Korea’s GLN International.
Khetan Group’s diversification into fintech adds yet another layer to its already sprawling portfolio, which includes investments in Laxmi Sunrise Bank, Everest Insurance, Himalayan Snacks and Noodles, and other key sectors.
As digital transactions become the cornerstone of Nepal’s financial evolution, this alliance between legacy capital and fintech ambition could redefine how Nepalese consumers, businesses, and institutions experience financial services in the next decade.
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