24th October 2025, Kathmandu
The upcoming Sixth Annual General Meeting (AGM) of Fonepay Payment Service Limited, scheduled for November 10, 2025, in Pulchowk, Lalitpur, represents a crucial moment for one of Nepal’s most dominant forces in the financial technology (FinTech) sector.
Fonepay Announces Sixth AGM
Beyond fulfilling statutory obligations, this meeting will set the strategic tone for the company’s future, including a highly anticipated move toward a public share offering.
As a key player in the national payment system, Fonepay’s AGM is more than just a formal review; it is a barometer for the health and direction of Nepal’s accelerating shift toward a cashless economy.
Mandatory Agenda: Reviewing a Year of Digital Growth
The announced agenda highlights the essential governance and financial review required under the Companies Act, 2063 (2006). Shareholders will be asked to approve the foundation of the company’s financial health and compliance for the past fiscal year.
Key Statutory Items for Approval:
Financial Statements and Reports: Shareholders will scrutinize the financial statements, auditor’s report, and director’s report for the fiscal year 2080/81. Given Fonepay’s massive market presence—handling well over 90% of QR payments in Nepal and processing daily transactions worth billions of rupees—the financial results are critical. Recent reports indicate the company achieved a significant turnaround, showing strong profit growth and a massive jump in earnings per share in FY 2080/81, making this approval a major vote of confidence in the management.
Auditor Appointment and Remuneration: The AGM must appoint an Auditor for the fiscal year 2081/82 and determine their remuneration. This independent appointment ensures corporate accountability and transparency, which is paramount for a company operating an essential public payment infrastructure regulated by the Nepal Rastra Bank (NRB).
Board Member Appointments: Deliberations on the appointment of board members are a key governance function, providing shareholders with the opportunity to shape the leadership that drives Fonepay’s strategic vision in a rapidly evolving FinTech landscape.
The Central Point of Discussion: Dividends and the Path to IPO
Two non-routine, yet extremely critical, items on the agenda are the deliberation on dividend distribution and the implied steps towards going public, which hold the most significant implications for Fonepay’s investors and the broader Nepali capital market.
Dividend Distribution: Rewarding Shareholders
The distribution of dividends—whether in cash or bonus shares—is a pivotal moment for a private company’s shareholders. In Nepal, dividends can only be distributed from accumulated profits and after meeting all statutory obligations. The decision at the AGM will reflect the Board’s view on:
Profitability and Reserves: How much of the FY 2080/81 profit the company is willing to distribute versus retaining for reinvestment in new ventures, infrastructure upgrades, or compliance requirements.
Investor Confidence: A strong dividend payout tends to signal financial stability and reward existing shareholders, which can positively impact the company’s valuation ahead of an expected public offering.
Growth Strategy: Since Fonepay is continuously investing in new technologies—such as its cross-border payment integration with India’s UPI and other international payment networks—the dividend policy will reveal the balance between rewarding shareholders now and fueling aggressive future expansion.
Paving the Way for a Blockbuster IPO
While the official notice may simply refer to discussing “distribution of dividends and appointment of board members,” the undercurrent of the sixth AGM is the crucial preparatory work for a potential Initial Public Offering (IPO). As a public limited company from its inception, Fonepay is legally mandated to issue shares to the public.
Recent announcements by the company’s CEO confirm plans to issue 20% of its paid-up capital through an IPO, potentially at a premium price. The AGM provides the essential corporate platform to:
Pass the IPO Proposal: Formally approve the resolution to issue public shares, which is the first internal step before filing the application with the Securities Board of Nepal (SEBON).
Establish Valuation: The strong financial performance and the recent high-valuation stake acquisition by a prominent business group (like the Khetan Group, which recently bought a significant stake) will underpin the push for a premium IPO. The AGM is the forum where the company will clarify the process and timeline for this valuation.
A successful Fonepay IPO would be a landmark event for the Nepali capital market, introducing a high-growth FinTech stock with a dominant market share. It would likely attract massive public subscription, similar to other highly anticipated infrastructure and financial sector IPOs, and further deepen the digital payments ecosystem by increasing public ownership.
Fonepay’s Position in Nepal’s Digital Economy
Fonepay operates Nepal’s largest and most interconnected payment network, linking over 60 banking and financial institutions, digital wallets, and millions of merchants. The AGM’s discussion of the company’s reports will inevitably highlight its dominant role in accelerating financial inclusion and driving the growth of the digital economy.
The continuous expansion of the network, the introduction of new features like the FoneTAG offline payment solution, and its pioneering work in cross-border payments (like UPI integration) demonstrate a company at the forefront of digital innovation. The resolutions passed and the financial results presented at the Sixth AGM will provide an unequivocal view of Fonepay’s strategy to solidify its near-monopoly and maintain its growth trajectory as Nepal marches toward becoming a digital-first economy.
For More: Fonepay Announces Sixth AGM