Most of the banks and financial institutions of Nepal have been moving toward the e-Banking system as all of them want to increase customer satisfaction and relationship (especially in terms of time), scope, and transaction facilities. Internet banking, also referred to as e-Banking in the context of Nepal, is going to be popular in terms of serving multiple financial services like fund transfers, utility payments, top-ups, etc.
While many banks and financial institutions are shifting to mobile banking, many third-party apps and startups have been introduced to serve that purpose as well. eSewa, Khalti, IME pay, FonePay, etc. are some prime examples of such startups. They are not only apps but separate operating financial institutions working to improve the situation of Internet banking in Nepal.
As of now, they have become a vital organ of Nepal’s economy and related financial institutions.
Among the many of these mobile banking apps available for use, we will be talking about Khalti in this article.
Khalti is one of the emerging online payment solutions in Nepal that allows users to pay for a range of services. It is a mobile wallet that you can use for basic utility payments, hotel bookings, movie, and domestic flight tickets, events, and many more. It offers the safest and fastest online payment experience for various Bill Payments, Mobile Recharges, DTH payments, Money Transfers, Domestic Remittances, shopping, and wallet payments.
Most of the services of Khalti are available through the web and mobile app.
Moreover, Khalti provides an easy way to send money or accept payments instantly as well. It offers smart payment options to overs thousands of merchants across the nation and seamless transactions using e-banking, smart banking, cards, and e-wallets. Apart from its app, Khalti has more than 8000 POS and Agent Network providing Khalti services to end-users throughout the country.
Khalti was launched back in 2017, with the aim to simplify the lives of people by bringing financial inclusivity to every individual in Nepal and to take the payment industry from offline to online through best practices. As of now, it is operated and owned by Sparrow Pay Pvt. Ltd. However, its parent company is Janaki Technology, which has been in the software product industry since 2010.
Khalti currently has a total of over 1,000,000 registered users and the majority of users have registered through the Khalti app. On a monthly basis, it has over 500,000 active users and the number is more than 250,000 per day. Though the number of users is less, the average daily transaction done through the app is between NRS. 50 lakhs to NRS. 1.5 Crores.
Khalti apparently provides services to its users based on one core principle/condition, i.e. KYC (Know Your Customer) Verification. Based on the status of KYC verification, you may or may not have certain limitations. For instance; the minimum transaction limit is Rs. 10 and the maximum is Rs. 50,000 at a time, Rs. 100,000 in a day and Rs. 500,000 in a month for KYC verified users.
Since Khalti is a private operating company, its financial statements are circulated among its management only. Because of that, the official/actual net worth of the company is confidential to the general public. Yet, some have made rough estimations regarding their net worth which we can use as a fair base.
Depending on Khalti’s popularity and usage, the estimated net worth of Khalti is around $20 Million. Let me tell you again, this data is an estimation only and the real figures may be way higher or lower than this.
Even though these numbers are estimations, it is without a doubt that Khalti is able to generate decent yearly revenue. Since Khalti is increasing its collaboration partners and proving cash-back to users, it might suffer from a financial crisis somewhere along the way. But I’m sure they will figure their way out of it eventually.
Khalti’s primary focus is to make its mobile application the most user-friendly one in the market. They have a very product-oriented approach to the market, in the sense that they are so focused on creating the most user-friendly app that is better than the competition.
They believe that doing so will ultimately lead to attracting more agents to their business as that is what the agents are looking for. Therefore, they are using the latest technology and are currently going through a system upgrade.
As a matter of fact, Khalti is home to some of the brightest minds in the country, which includes a team of highly skilled developers, dedicated employees, creative management, and interactive marketers. As a result, their solution-oriented approach is what makes them reliable for any and all kinds of service that customers might require from Khalti with the best user experience possible.
As a digital wallet system, it is being used widely and is appreciated by many people. It has also partnered with many either financial institutions operating in Nepal. The majority of banks and institutions accept transactions through Khalti as well and the amount of transactions is also increasing day by day. The interesting cash-back and discount offers are one of the main attractions for their users.
Khalti was able to achieve the winning position globally at the Google Business Group Storytelling Contest held back in 2017. Khalti has been identified among many companies in Nepal with the potential to bring women and girls out of poverty. For that particular purpose, they have launched a campaign known as the ‘Smart Chhori Campaign‘.
This campaign is supported by Spring Accelerator, backed by the UK’s Department for International Development (DFID), the U.S Agency for International Development (USAID), and the Australian Department of Foreign Affairs & Trade (DFAT).
Likewise, Amit Agrawal, the Founder of Khalti was awarded the prestigious ICT Entrepreneur Award 2019. This annual award is dedicated to IT Entrepreneurs of Nepal who are shaping the arena in Nepal and beyond, to recognize their ability and help them move ahead. In his acceptance speech, Agrawal dedicated the award to the efforts of his incredible team at Khalti and Sparrow SMS.
Recently, Khalti has partnered with ‘The Asia Foundation‘ to provide digital and financial literacy information to all the Nepali migrant workers through the Shuvayatra app, funded by Department for International Development (DFID). In the upcoming days, it aims to collaborate with more institutions, improving the status of Nepal and its citizens.
In an interview, Amit Agrawal, the founder of Khalti Digital Wallet, said, “The basics should be right. We should not run about glamour or buzzwords like startups, entrepreneurship, or apps. We should think like a traditional business person first. Find the problems, the scope, the scale, and the business sense. Be clear on your offering, pricing, and who will be the paying customers.”
To sum up, Khalti has come a long way since its initiation and has brought about a revolution in the financial sector of Nepal. It is one of the very few apps that have been able to thrive in this sector, next to eSewa and IME pay. I’m pretty sure that it is going to reach even greater feats and do more for the nation and its people.
Reference used for the creation of this article:
- Khalti Digital wallet’s Official Site
- Study of Mobile Wallet Market in Kathmandu for the Launch of New Product – CG Pay
I hope that this article was helpful to you. See you in the next article!!
Best Regards!!
