Khetan Group to Acquire 20% Stake in Fonepay, Approval File Submitted to Nepal Rastra Bank
Prominent business conglomerate Khetan Group is set to enter Nepal’s digital payment sector by acquiring a 20% stake in payment service provider Fonepay. Rajendra Khetan, who recently became “cash-rich” after selling his shares in Gorkha Brewery and Carlsberg India, is now gearing up to venture into the fintech industry.
According to sources, a preliminary agreement regarding the investment was reached nearly three months ago between Fonepay’s parent company, F1Soft Group, and Khetan Group.
Fonepay has already informed the regulatory authority, Nepal Rastra Bank, about the investment agreement. The share acquisition process will move forward once the central bank grants its approval.
Manish Thapa, Managing Director of Global Equity Fund, stated that Khetan Group will make its investment in Fonepay through the Global Equity Fund.
“We are mobilizing the Nepal Infrastructure Investment Fund and the Nepal Impact Growth Equity Fund-I to make a strategic investment in Fonepay. We believe this investment will play a key role in shaping Nepal’s digital payment landscape,” Thapa wrote on LinkedIn.
About Fonepay
Fonepay Payment Services Ltd. received approval from Nepal Rastra Bank to operate as a Payment System Operator (PSO) on Magh 26, 2076 (February 2020). The company has a paid-up capital of NPR 505 million. In the fiscal year 2080/81 (2023/24), Fonepay reported a net profit of NPR 180.76 million. In the previous fiscal year 2079/80 (2022/23), it had earned NPR 10.96 million in profit.
Fonepay operates not only within Nepal but also provides cross-border QR payment services. In collaboration with India’s Unified Payments Interface (UPI), Fonepay has already launched QR payment services. It has also signed agreements for cross-border payments with LankaPay, Sri Lanka’s national payment network, and GLN International of South Korea.
Read More
