Khetan Group, one of Nepal’s oldest and most influential business conglomerates, has taken a major step into digital finance with the acquisition of a 14 percent stake in Fonepay, the country’s leading payment system operator. The purchase, led by group chair Rajendra Khetan, highlights the group’s growing focus on financial technology as it shifts away from traditional industries.
According to Nepal Rastra Bank (NRB), ten investors collectively acquired 22.23 percent of Fonepay’s shares for around Rs1.49 billion, placing the company’s valuation at Rs6.67 billion. Alongside Khetan’s direct stake, his affiliate Rapid Investment secured an additional 1 percent. Other investors include Nepal Impact Fund One, Nepal Infrastructure Fund, Nepal Impact Global Equity Fund One, Sweda Investment, Laxmi Micro Investment, DJ Shrestha, GGC Investments, and Parsa Holdings.
The shares sold included 14.37 percent previously held by F1Soft, Fonepay’s parent company, and 8 percent owned by early investor Asgar Ali. NRB has approved the ownership change, with final administrative processes underway.
This investment builds on Khetan’s expanding footprint in the financial sector, following his recent Rs1.26 billion purchase of promoter shares in Laxmi Sunrise Bank. Having exited longstanding ventures such as Gorkha Brewery and Carlsberg India, the group is now channeling capital toward banking, insurance, venture capital, and fintech.
“Digital banking is the future of financial inclusion,” said Rajendra Khetan, emphasizing the potential to serve marginalized communities through mobile-based services. With over seven million demat accounts in Nepal, he argued that the public is ready for broader digital financial solutions beyond stock trading.
Since receiving its NRB license in 2020, Fonepay has built near-monopoly status in QR payments, processing 92–94 percent of transactions nationwide. On average, the platform handles 1.8 million daily transactions worth Rs18 billion, including 1.3 million QR payments and 500,000 interbank transfers.
F1Soft, Fonepay’s parent, has been raising capital to expand adjacent businesses such as eSewa, Foneloan, and Fonepoints. Co-founder Subash Sharma confirmed that while Fonepay’s IPO is inevitable, selling a stake now provides financial flexibility to grow new verticals. With profitability achieved, regulators and investors expect Fonepay to move toward a stock market listing soon.
With strong backing from major financial institutions and widespread adoption, Fonepay remains firmly positioned as Nepal’s dominant player in digital finance.
