Fonepay Valued at Rs 6.7 Arba as Khetan Group Acquires 14%

Khetan Group and nine other investors have acquired a 22.23% stake in Fonepay for Rs 1.49 billion, valuing Nepal’s leading fintech at Rs 6.7 billion. Learn why this move matters, the risks of monopoly, and how it could lead to Nepal’s first fintech IPO.

What’s the first thing that comes to mind when you hear “Khetan Group”? For most Nepalis, it’s beer bottles, or maybe those old Coca-Cola ads. But in an interesting turn of events, the very family empire that once brewed our weekend Gorkha beer has just poured crores into Fonepay, the QR network powering our everyday payments.

It’s a wild crossover if you think about it. One of Nepal’s oldest business houses, built on industries like aviation and noodles, now wants to own a big slice of your QR payments. And they’re not just dipping their toes in, they’ve gone all in with a 14% stake.

In this article, we’ll break down why the Khetans are betting big on fintech, what this means for F1Soft, the risks of putting almost all of Nepal’s digital payments in one basket, and even the possibility of Fonepay becoming Nepal’s first fintech IPO.

But before we dive into all that, let’s take a step back and meet the two players behind this story: the Khetan Group, an industrial heavyweight with deep pockets, and F1Soft, the scrappy fintech pioneer that dragged Nepal into the digital payments era.

Meet the Players: Khetan Group and F1Soft

Before we dive into numbers, let’s quickly get to know the two big names in this story.

Khetan Group 

The Khetan family name has been part of Nepal’s business fabric for nearly a century. They started out trading rice, cloth, and other essentials along the Indo–Nepal border long before Nepal even had modern industries. By the mid-20th century, the group had grown into aviation (they were early promoters of Nepal Airways), food processing (instant noodles and edible oils), and consumer goods (Coca-Cola bottling).

In the 1980s and 1990s, the Khetans became synonymous with beer and spirits. Gorkha Brewery, Carlsberg, and Tuborg; household names in Nepal, were all part of their empire. But in the last decade, they’ve gradually stepped away from “old economy” businesses. The brewery stakes were sold off, the bottling units handed over, and instead, the group has gone all-in on financial services.

Today, the Khetan Group holds significant stakes in banks like Laxmi Sunrise Bank, insurance companies like Everest Insurance, and even mutual funds. The move into Fonepay is the continuation of their deliberate shift from factories and breweries towards finance and digital infrastructure.

F1Soft

Now, on the other side, we have F1Soft International. If the Khetans represent heritage, F1Soft represents disruption. Founded in 2004 by Biswas Dhakal and his co-founders, the company started out writing software for banks, helping them digitize services at a time when even SMS banking felt revolutionary.

In 2009, F1Soft launched eSewa, Nepal’s first digital wallet, well before “fintech” became a buzzword here. Back then, mobile data was slow, smartphone penetration was low, and the idea of paying for anything online was almost alien. But F1Soft stuck with it, slowly building partnerships with banks, telcos, and merchants.

By 2018, they doubled down with Fonepay, a national payment switch and QR network. Within just a few years, Fonepay dominated the market. Today, whether you’re buying vegetables, paying for petrol, or transferring funds between banks, chances are your transaction runs on Fonepay rails.

Kantipur Media Group (KMG)

But there’s another influential player in this mix: Kantipur Media Group (KMG), a name most Nepalis know from newspapers, TV, and radio. Back in 2017, KMG quietly took a big leap into fintech by acquiring a stake in F1Soft, a parent company of Fonepay. At the time, F1Soft’s valuation was estimated at around Rs 1.5 billion.

But this wasn’t just about writing a cheque. With its massive media reach, KMG helped put F1Soft’s products; eSewa, Fonepay, and beyond, in front of millions of people, even in rural areas where banks barely exist.

Their role goes deeper too. Sambhav Sirohiya, KMG’s Managing Director, sits on Fonepay’s board, giving them a real voice in how the company is run. So instead of being a silent shareholder, KMG has been an active partner, using its influence and networks to accelerate fintech adoption across the country.

Nepal’s Love Affair with Fonepay

Now let’s talk about why Fonepay is such a big deal.

Just a few years ago, buying vegetables in Asan meant handing over crumpled notes. Today, chances are you just scan a QR code. And almost all of those QR codes? They run on Fonepay’s system.

To put it in numbers: in July 2025 alone, Nepalis scanned their way through 40 million QR transactions worth over Rs 113 billion (Nepal Rastra Bank’s Payment Systems Indicators of 2082 Asar 2082.) And guess what? 92–94% of those went through Fonepay. That’s near-total dominance.

It’s not just about tea shops either. On an average day, Fonepay handles 1.8 million transactions worth Rs 18 billion. That’s everything from your momo lunch to interbank fund transfers. Basically, if money is moving digitally in Nepal, Fonepay is almost always in the middle of it.

Fonepay’s Valuation and the Deal Structure

So how much did the Khetan Group pay to get a piece of this action?

Together with a handful of other investors, they bought 22.23% of Fonepay for Rs 1.49 billion. Out of that, Khetan alone grabbed a chunky 14% stake (plus another 1% through one of their companies). That puts Fonepay’s overall value at a cool Rs 6.67 billion.

Who’s Exiting?

The shares came from two sources: F1Soft, which sold about 14%, and IT entrepreneur Asgar Ali, who sold 8%. Why would F1Soft let go of such a valuable piece of its crown jewel is simple; they need fresh capital to expand other bets like digital lending (Foneloan), micro-loans (Easyloan), and remittance products through eSewa. As for Asgar Ali, one of F1Soft’s early backers, this deal looks like him taking a small step back and freeing up time and focus to put more energy into his own venture, Ambition Guru.

This isn’t the first time someone’s tried to buy into Fonepay either. A few years back, Dolma Impact Fund had a deal on the table for a 20% stake at a much lower valuation. But because it was foreign money, they needed Nepal Rastra Bank’s approval. The central bank not only blocked the deal at the time, it also issued guidelines that capped foreign investment in payment system providers (PSPs) at just 15%. This time, with Khetan Group leading the pack, the regulators gave the green light.

So here we are: one of Nepal’s oldest family businesses now owns a big slice of its most futuristic financial network.

Now, let’s get into why the Khetans are making this move, and what it means for F1Soft’s future.

Why Khetan Group Is Betting on Fintech

So, why would the Khetan Group, with its history in breweries and bottling plants, suddenly fall in love with QR codes?

It’s all about where the future is heading. A few years ago, the group sold off its long-time brewery stakes (Gorkha Brewery, Carlsberg India) and quietly started piling into finance. They grabbed a 7.5% slice of Laxmi Sunrise Bank, beefed up their insurance portfolio with Everest Insurance, and dipped into mutual funds. Now with Fonepay, they’ve sealed their place in fintech.

They’re basically betting that the next wave of growth in Nepal won’t come from factories or breweries, it’ll come from apps. And it makes sense, as more than seven million demat accounts are already open in the country, showing people are ready to invest, trade, and save digitally.

This isn’t unique to Nepal either. Look at Reliance in India; they built Jio into a digital empire that now includes payments, banking, and even e-commerce. Or SoftBank, which tried (sometimes too aggressively) to buy its way into global fintech like Paytm. The Khetan Group is following a similar playbook: move from bricks to bytes, from beer to banking.

And with Fonepay already sitting at the center of Nepal’s digital payment ecosystem, it’s a smart place to start.

What This Means for F1Soft

Now let’s flip the lens. What does this deal mean for F1Soft, the company that created Fonepay?

For starters, it gives them a cash cushion. Running a fintech giant isn’t cheap, and F1Soft has bigger ambitions than just QR payments. They’re building out Foneloan, a platform that lets banks give small digital loans directly through mobile apps. They’re expanding eSewa Easyloan, targeting people who need quick credit without mountains of paperwork. And then there’s the remittance game, where eSewa Money Transfer is going head-to-head with old-school money transfer companies.

Selling part of their stake in Fonepay gives F1Soft the capital to chase all of this without losing control. The founders still run the show, but they’ve spread out ownership to bring in heavyweight backers like the Khetan Group. It’s basically a balancing act: keep innovating, but don’t run out of fuel.

And let’s not forget the IPO angle. F1Soft had actually planned to take Fonepay public before; once in 2020, and again in 2024, but both times they pulled back because the company was still losing money. Now that Fonepay has turned profitable, the IPO is back on the table.

The IPO Question

From day one, fonepay was registered as a public limited company, which means they always had plans to issue IPOs at some point.

Companies need a minimum of Rs 1 crore paid-up capital, at least three years of operations, and two consecutive years of profit before they can list. Fonepay ticks those boxes now. Which means we could be looking at Nepal’s first pure-play fintech IPO very soon.

Why does that matter? Well, for retail investors like us, it could be the first chance to own a slice of the country’s digital payment backbone. Imagine being able to say, “I own shares in Fonepay,” the same way people boast about holding bank and hydro stocks today.

It would also be a big signal for Nepal’s capital market. If Fonepay lists successfully, it sets the stage for other fintechs to follow.

So the IPO is about proving that Nepal’s digital economy has matured enough to take center stage and not just about raising money from the public.

Risks and Concerns

Alright, let’s slow down for a second. Because while it’s easy to get excited about Fonepay and its Rs 6.67 billion valuation, there’s a darker side to the story.

Market Concentration. 

When one company controls 92–94% of QR payments, that’s basically a monopoly in everything but name. Great for efficiency, not so great for competition. If you’re a new fintech trying to break in, going up against Fonepay feels like opening a tea stall next to Bhatbhateni.

Single Point of Failure

Right now, about 1.8 million digital transactions happen daily on Fonepay’s network. If the system crashes; or worse, gets hacked, it’s not just one company that goes down. The entire country’s daily financial activity takes a hit.

Interoperability Headache

The central bank has been telling payment companies to make their systems more open and compatible for years, but in practice, Fonepay still holds the steering wheel. Consumers and merchants are locked into their network, with limited ability to switch.

Consumer Protection and Data Privacy

Who owns the transaction data? How is it being used? What safeguards exist against misuse? These questions don’t have clear answers yet, and that’s risky when one company sits on so much financial information.

Global Lessons

In India, the payments space turned into a duopoly between PhonePe and Google Pay, sparking regulatory pushback. Paytm, once the golden child, went from hero to almost zero when growth slowed and regulators clamped down. Fonepay might be riding high now, but history shows that even the biggest players can stumble.

All of this doesn’t mean Fonepay is doomed, it just means the stakes are higher than ever. Dominance can look like strength, but without competition, oversight, and strong guardrails, it can just as easily turn into vulnerability.

The Bigger Picture

Now let’s zoom out. What does all this really mean for Nepal?

For the Khetan Group, this move is symbolic. It marks a clear shift from old industries; “bricks”, into digital finance; “bytes.” It’s the same story playing out across Asia: traditional conglomerates rebranding themselves as tech-savvy investors.

For consumers like you and me, it’s a double-edged sword. On one hand, Fonepay makes life incredibly easy. Scan a QR, pay in seconds, no need to carry cash. On the other hand, if one company controls almost the entire network, the risk of over-dependence becomes real.

For banks, it’s a bit awkward. On the surface, they’re partners with Fonepay, and millions of interbank transfers happen through the system. But deep down, there’s also tension. If Fonepay (and by extension F1Soft) keeps expanding into loans, remittances, and investments, banks may find themselves competing with the very network they rely on.

And finally, for Nepal’s digital economy, this deal is a major turning point. Does the Khetan Group’s investment accelerate the vision of a Digital Nepal, where everyone has access to modern financial tools? Or does it concentrate too much power in one network, leaving innovation and competition to die on the vine?

That’s the big question hanging in the air.

Final Thoughts: From Beer to QR Codes

When you step back and look at the whole story, it almost feels surreal. The Khetan Group, a business empire that once made its money brewing beer, now owns a big slice of Fonepay, the invisible network that runs Nepal’s digital economy. And honestly, that says a lot about where the country is headed.

But with great dominance comes great risk. When one company controls almost every QR code in the country, we’re basically putting all our eggs in one digital basket. That’s convenient until the day something goes wrong. And in Nepal, where regulators usually act after the crisis rather than before, that’s a bit scary.

So maybe the question isn’t just “Was this a smart move for the Khetans?” The answer to that is obvious; yes. The real question is: Is it healthy for Nepal’s digital future if one network, one company, and one family end up holding all the keys?

Time will tell. But for now, every time you scan a Fonepay QR at your local tea shop, remember that there’s a little piece of the Khetans sitting in that transaction.

Additional Resources:

• Why NIBL Equity Partners Is Betting on Himalayan Java Coffee
• Khalti and IME Pay Merger: A Game-Changer for Digital Payments in Nepal
• Embossed Number Plate: A Digital Dream or Just Another Headache?