IME Digital Solutions Limited (IME Pay) and Khalti Pvt. Ltd., two of Nepal’s leading payment service providers (PSPs), officially launched integrated operations under the name of “IME by Khalti” on Thursday, July 17, following their merger.
IME Khalti Ltd., the merged entity, has a paid-up capital of over Rs 540 million and a combined user base of 12.7 million. For comparison, eSewa is reported to have around 13 million registered users. However, experts note a significant disparity between registered and active users across Nepal’s digital wallets.
The Deputy Governor of Nepal Rastra Bank (NRB), Bam Bahadur Mishra, handed over the integrated license to the newly formed entity during a ceremony held in Kathmandu.
[Read: Khalti-IME Pay Merger: Reshaping Nepal’s PSP Industry
Krishna Prasad Sharma, Chairman of IME Digital Solutions Ltd., will lead the board of IME Khalti Ltd. Other board members include Diwakar Paudel, Sitaram Thapa, Praveen Regmi, Amit Agrawal, Arvind Shah, and Manish Modi.
The merger follows a key regulatory amendment by the NRB. The revision to the Payment and Settlement Bylaw, 2077 (Amended 2080) permits mergers and acquisitions among licensed PSPs under Sub-rule 13 of Rule 37.
“The consolidation of these two prominent platforms marks a historic step in the evolution of Nepal’s digital financial sector,” said Manoj Kumar Agrawal, Chairman of Khalti. “We believe IME Khalti Ltd. will usher in a new era of financial access and inclusion across the country.”
Binay Khadka, CEO of IME Khalti Ltd., said the company plans to expand digital access, promote financial literacy, and drive broader financial inclusion.
IME Pay, backed by the IME Group, received its PSP license in June 2017. Khalti followed in April 2019. Though IME Pay held a higher paid-up capital, Khalti maintained a significantly larger user base, with over five million downloads on Google Play Store, compared to IME Pay’s one million.
Industry observers see the merger as a strategic alignment—combining IME Pay’s robust financial network, including ties to banks, insurers, cooperatives, and brokers, with Khalti’s strong digital engagement among younger users.
“This merger further consolidates IME Pay’s advantage, particularly with the IME Group’s broader portfolio, which includes InfoDevelopers, Midas Technology, and Sastodeal,” a fintech analyst told New Business Age earlier this year.
The merger is also seen as a move to improve operational efficiency on Khalti’s part. “Khalti has been facing a high cash burn rate. The merger could help optimise resources and ensure long-term sustainability,” the analyst added.
The move comes at a time when Nepal’s PSP industry is under pressure. Experts say only a few companies are currently profitable.
