Khalti and IME Pay, two prominent digital wallet platforms in Nepal, are reportedly in the process of merging, according to several sources. While no official confirmation has been made yet, it is said that the Memorandum of Understanding (MoU) was finalized yesterday. If true, this merger would mark a major development in Nepal’s fintech landscape.
Merger Details and New Entity: The newly merged platform may be called either IME Khalti or Khalti Pay, although the final name has not been decided. While it’s believed that the Board of Directors (BOD) and CEO positions have been finalized, the specifics of the financial structuring and share distribution are still unclear.
Market Dynamics and Competition: Nepal’s digital payment space is currently dominated by eSewa, which holds an 80% market share. Khalti, with 4 million subscribers, primarily offers mobile payment services, while IME Pay specializes in remittance services. Despite IME Pay’s larger paid-up capital of Rs 300 million compared to Khalti’s Rs 50 million, Khalti is said to have a stronger market presence. Should the merger happen, it could enhance the combined entity’s competitive position against eSewa.
Regulatory Environment: This potential merger is in line with the revised Transaction and Settlement Bylaw, 2077, issued by Nepal Rastra Bank (NRB), which now permits digital wallet consolidations. If finalized, this would be the first merger to occur under the new regulation.
Ownership and Stakeholder Information: Khalti was founded by Amit Agarwal, Dhruv Adhikari, Arvind Shah, and Manish Modi. In 2078 BS, Worldlink acquired a 40% stake in Khalti, further strengthening its market position. As of now, it remains uncertain whether Khalti and IME Pay will proceed with the merger, pending official confirmation.
