FonePay Proposes Cash Dividend of Nearly NPR 10 Crore, AGM Scheduled for November 10 to Discuss IPO
4th November 2025, Kathmandu
FonePay Payment Services Limited, Nepal’s leading Payment System Operator (PSO), has called its Annual General Meeting (AGM) for November 10, 2025, with a pivotal agenda that includes a cash dividend proposal and the formal process to initiate an Initial Public Offering (IPO).
FonePay Proposes Cash Dividend
This AGM marks a critical step in the company’s evolution from a private fintech powerhouse to a publicly listed entity.
Key Agenda Items for the 6th AGM
The upcoming AGM will seek shareholder approval on key financial results and strategic corporate maneuvers essential for the company’s future and its push toward a public listing.
Substantial Cash Dividend Proposal
The Board of Directors is proposing a significant return for its current shareholders, reflecting the company’s strong financial performance in the last fiscal year.
Dividend Rate: A cash dividend equivalent to 19% of the paid-up capital is being proposed.
Total Value: The total cash dividend amount is proposed at NPR 9.785 million (NPR 97,85,000).
This dividend proposal provides a direct financial return to the shareholders, serving as a testament to the robust profitability achieved by the company through its near-monopoly position in the domestic QR payment and interbank transfer market.
Note on Paid-Up Capital: Based on the proposed 19% dividend amounting to NPR 9.785 million, the company’s current paid-up capital is calculated to be approximately NPR 51.5 million (NPR 9,785,000 / 0.19).
Formalizing the IPO Intent
The AGM is set to discuss and seek approval for the necessary steps to transition the company towards a public offering.
IPO Discussion: Shareholders will deliberate on the formal process and plans for issuing an Initial Public Offering (IPO). FonePay, registered as a public limited company from the outset, is legally required to go public eventually. Having recently achieved sustained profitability, the company now meets the mandatory criteria for listing on the stock market, making the IPO an imminent reality.
Articles of Association Amendments: Essential amendments to the company’s Articles of Association will be proposed. These amendments are typically required to align the company’s internal regulations with the stringent guidelines and statutes mandated by the Securities Board of Nepal (SEBON) for publicly traded companies.
Once the shareholders approve the proposals, including the amendments, the company can officially proceed with the lengthy IPO issuance process, which includes financial due diligence, securing regulatory approvals, and selecting a merchant banker (FonePay previously entered into an IPO advisory agreement with NMB Capital).
FonePay’s Dominance in Digital Payments
FonePay is not just a payment system; it is the dominant backbone of Nepal’s digital transaction ecosystem, making its planned IPO a landmark event for the country’s capital market.
Market Leadership
As a Payment System Operator (PSO) licensed and regulated by the Nepal Rastra Bank (NRB), FonePay connects over 60+ banks and financial institutions (BFIs), 20 million+ registered customers, and over 1.7 million merchants. It facilitates a massive volume of transactions, including QR payments, interbank fund transfers via FonePay Direct, and other value-added services like its groundbreaking virtual credit card. Industry data often suggests that FonePay processes over 90% of all QR payments in Nepal, highlighting its near-total market concentration.
Strategic Importance of the IPO
The IPO of FonePay is highly anticipated for several reasons:
Benchmarking: It is expected to set a benchmark for the listing of technology and fintech companies in Nepal, providing an avenue for public investment into the rapidly growing digital sector.
Increased Valuation: Recent secondary market transactions have valued FonePay at approximately NPR 6.67 billion, reflecting the market’s confidence in its growth trajectory. The public listing will solidify this valuation and provide liquidity to its existing shareholders.
Financial Inclusion: By raising public capital, FonePay will further its mission of building an inclusive financial infrastructure, enabling it to continue investing in innovation like cross-border payments (e.g., with India’s UPI/LankaPay) and expanding financial services to unbanked populations.
The AGM on November 10, 2025, is thus a defining moment for FonePay, signaling its transition to a new phase of public accountability and accelerated growth in the digital finance space.
For More: FonePay Proposes Cash Dividend
