House of Raj, an investment group led by prominent Nepali businessman Rajendra Khetan, is set to acquire a 20% stake in Fonepay Services Limited, one of Nepal’s largest fintech firms. Fonepay operates under the F1Soft International group and is licensed by the Nepal Rastra Bank (NRB) as a payment system operator.
The acquisition deal, valued at Rs 1.4 billion, was finalized two months ago, according to Manish Thapa, Managing Director of Global Equity Fund, which is affiliated with House of Raj. The agreement is currently awaiting regulatory approval from the central bank, with approval expected within a week.
Fonepay underwent a due diligence audit prior to the agreement to determine valuation. The strategic investment aligns with House of Raj’s growing focus on Nepal’s financial ecosystem, including sectors such as fintech, insurance, and capital markets. The Khetan group, following a split, has prioritized financial sector investments under Rajendra Khetan’s leadership.
Fonepay has emerged as a dominant player in Nepal’s digital payments landscape. According to NRB, the company facilitated over Rs 2 trillion in interbank transfers during the fiscal year 2023/24. It introduced QR-based payment services in 2019 and has reported rapid growth in transaction volumes. On March 10 of this year alone, it processed over 1 million QR payments in a single day.
In March 2024, Fonepay also launched QR payment functionality for Indian tourists, allowing transactions through India’s Unified Payments Interface (UPI) in Nepal. The company recently announced that cross-border UPI transactions via its QR codes have surpassed 1 million.
