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With over 16 years of operating experience, the F1Soft Group is one of the biggest technology companies in Nepal and a proven pioneer in fintech (financial technology). F1Soft has created an ecosystem of digital products and services, including the very first and the most popular eSewa and Fonepay services that started a digital revolution in the country.

Catering to growing the needs of Nepali customers, F1Soft has been facilitating consumers’ access to financial services and enabling their inclusion in the formal digital economy with a diversified portfolio of Digital Financial Services (DFS). A team of 700+ management and technology professionals, more than 10 years of research and innovations and thousands of clients, F1Soft is a major influencer of fintech services in the Nepali market.

Sunny Mahat for ApEx talks to Subash Sharma, CEO of F1Soft International Pvt. Ltd, about the growing opportunities of fintech services in Nepal and the effects of the pandemic.

How do you see the growth trajectory of fintech services, especially after the Covid-19 pandemic?

In the past year, especially after the pandemic, we have experienced an encouraging growth in digital payments. Our conventional way of conducting business has been disrupted. Every business has been looking to adapt to the new normal. People are actively looking at ways to continue and identify better ways to conduct their businesses.

This has created new opportunities for fintech companies to partner with businesses in multiple aspects. Our platforms, especially eSewa and Fonepay, have seen increased transactions that include bank-to-bank fund transfers, utility bill payments and QR payments.

But when you talk about fintech services and the industry, it is not limited to payments. F1Soft is looking to develop innovative products to target other aspects of financial services. Last year we launched Foneloan, a digital lending platform. This has already been launched with more than five banks. Customer interest in the product has been exciting. This shows our customer base is ready for multiple digital financial services. We as a company focused on fintech are looking to introduce multiple products based on customers’ interest and demands.

Like most technology companies in the country, does F1Soft also face the challenge of high employee turnover?

Yes, high employee turnover is a pressing issue among all technology companies in Nepal. Compared to the industry, we are better positioned to handle the impact. F1Soft is proud to say that our employee retention rate is one of the best in the industry. At F1Soft, we have been able to instill a sense of achievement in our employees and they are proud to see the impact their work has created in the country and the economy.

What could be done to stop the ‘brain drain’ of technology professionals?

‘Brain drain’ is a big issue not just for us but for almost all the developing economies. It is not necessary to always see this as a disadvantage. Often, we have seen people gathering experience and exposure on a bigger stage which can be a huge advantage back home if they ever decide to return or send projects or create partnerships between the local companies and their international business partners.

Stopping brain drain is not just an issue to be handled by individual companies but at the level of the national economy. If our economy can grow faster, we will create attractive opportunities for our young talents. This will definitely help us retain our talents.

What next for eSewa and Fonepay, both of which have had great success?

eSewa has been in the digital wallet and payment industry for the past 12 years. Compared to the days we started when there was no payment infrastructure, today we have a robust infrastructure for digital payments. eSewa is credited for taking the lead in this. Today, we have created an industry and there are multiple companies working in this space including the ones promoted by big business houses. Fonepay has entered the market at the right time to promote digital payments by creating a common network of banks/financial institutions and wallets, and by promoting interoperability.

Though we have already created a robust infrastructure, we have not been able to influence more than 5 percent of the transactions; 95 percent of the market is still untapped. Our immediate focus is to increase adoption and become more inclusive.

Do you think digital money will ever have a dominance over paper money in Nepal?

Honestly speaking, in an economy like ours, I don’t see digital payments completely replacing paper money in the near future. But what is certain is digital payments will continue to grow as they promote convenience and transparency. With the growing need for businesses to be more transparent and customers always looking for convenient ways to make payments, digital payment is on the way to becoming more preferred. If we observe current trends, we see digital payments becoming the dominant form of payment in five years. We see usage of cash decline for all forms of payments. The future is less-cash rather than completely cashless.

Udeep Shrestha, heir to the well-known Panchakanya Group, is a member of a new generation of Nepali business people taking over traditional, family-owned businesses and turning them into major corporate houses. Equipped with the right education, the young generation is adapting quickly to the globalized world and making every effort to put Nepal on the international map for trade, business and industry.

Shrestha, who now leads the decades-old multi-industry conglomerate, is also involved in facilitating and promoting entrepreneurship in Nepal. Sunny Mahat of ApEx caught up with him to talk about the country’s current economic situation and opportunities for entrepreneurs.

How is the Panchakankya Group adapting to the changing times and the economic volatility brought about by the pandemic?

The past two years have been tough for most businesses, right around the world. At Panchakanya, we have taken most of our business activities online. We have also adopted digital documentation within the company and our dealer network, as far as practicable.

Similarly, we have reworked our minimum inventory level, receivable policy and cash flow cycle to make them as lean as possible.

Covid-19 is being seen as a threat to Nepali businesses. Do you also identify possible opportunities it might have created?

Yes, I guess every challenge brings with it an opportunity. The online space has now become the platform to be. With people being compelled to embrace mobile payments and more online buying, studying customer behavior and perception has opened countless opportunities in this arena. The past two years have been tough, but they have also led to a rapid adoption of e-commerce.

Similarly, with lower interest rates and an e-trading platform, the stock market has become more vibrant.

Do you think, after all these years, Nepali businesses can still blame ‘political instability’ for their failures or should businesses see it as just another threat?

Political instability is not something new in Nepal; it has been around for decades. As a result, I believe most businesses have already adjusted to the always-looming political uncertainty. Political instability may not be the only reason for business failure, but it is a reason that undermines and restricts the growth of most companies. It also discourages new investments. It may not be the primary reason a business fails but it is definitely the main reason many businesses may not at all start.

As the new NYEF chair, what are your plans to foster entrepreneurship among youngsters?

At NYEF, we have been utilizing the lockdown to enhance learning among our members and young entrepreneurs. Organizing these online learning sessions across our 10 chapters has allowed us to reach entrepreneurs around the country with valuable content.

NYEF, as the national host, is also currently organizing the Entrepreneur’s World Cup (EWC). The EWC is a global competition for startups with a cash prize of $500,000. NYEF is also closely working with ILO and the Ministry of Industry in developing the much-needed startup policy that will be a guideline for the use of the government’s recently declared challenge fund for subsidized loans for startups.

Further, we are working on developing an entrepreneurs’ portal. The online portal will have information every entrepreneur needs regarding registering, managing and growing a company. We feel this will be a good resource center for Nepali entrepreneurs.

It is also NYEF’s intent to be the voice for youth entrepreneurs in the country. To achieve the same, NYEF along with its chapters have been consistently communicating with all three levels of the government to address the challenges faced by startups and young entrepreneurs.

As a young businessperson yourself, do you think Nepal’s business community is accommodating and inviting for young people?

I think Nepal’s business community has always been inviting and encouraging to the youths. It is the bureaucracy, political uncertainty, challenges in access to finance and unclear policies and regulations that discourage the youth from coming back and doing business in Nepal.

It is important to understand that startups and new businesses are vital to the business ecosystem and key drivers of economic growth and sustainability.

The country is plagued by the Covid-19 pandemic. The health system has reached a critical stage where lack of oxygen and other health supplies has led to premature loss of life. In such a dire situation, the private sector has extended a helping hand to the government to manage the situation. Here’s an excerpt from conversation with Surendra Silwal, deputy managing director at Gorkha Brewery, a company that has stepped up to assist the government and the people to save lives.

What kind of support has Gorkha Brewery provided under its corporate social responsibility program to help those affected by the Covid-19 pandemic?
With support from Temasek Foundation, Singapore. and the Lotus Life Foundation, Gorkha Brewery has provided the government a variety of health products worth about Rs 250 million. The goods that arrived in Nepal on May 22 were handed over to Health Minister Hridayesh Tripathi on behalf of Gorkha Brewery the very next day.

We also expect additional medical supplies to arrive from Singapore in a few weeks. I would personally like to thank Benedict Cheong, chief executive officer of Temasek Foundation International, who played a vital role in providing the health care equipment.

What other activities is Gorkha Brewery conducting under its corporate social responsibility?
Under our CSR programs, we have run a myriad of different types of programs around the country. We run a school for children under Mukundapur Village Development project with the help of the Rotary Club. We provide all the expenses needed to run the school.

Apart from that, we have also been conducting free health camps at different times at the local level. We have been providing necessary assistance to other local schools from time to time. Similarly, we have provided and continue to provide necessary assistance for sports.

We also try to step in with whatever assistance possible during natural calamities and epidemics. 

What role can a private company like yours play to keep the country’s economy afloat? 
Our company, first of all, has contributed to keeping the country's economy afloat. In terms of production, we are producing something that would otherwise be imported. We are also trying to use local raw materials as much as possible. We try to reduce imports and that helps the economy. 

In addition, we are also creating thousands of jobs and also making huge contributions to the country’s tax revenues. 

Why do you think industries are failing to flourish in Nepal?
The role of the government is also important for the prosperity of industries. The government's policies should be industry-friendly to make industries and businesses flourish. We need long-term policies in our favor but we have a problem in this regard. Our policies keep on changing and we cannot keep up to them. There is too much bureaucracy and red tape that discourages industrialists both new and experienced. 

Kathmandu valley and most parts of Nepal are under strict prohibitory orders in an effort to break the chain of Covid-19 infections. Amid this gloom, the entertainment provided by the Nepal Super League (NSL) being held at the Dasharath Rangasala Stadium in Kathmandu is offering Nepalis much-needed respite. The newly established franchise football league, organized by Nepal Sports and Event Management (NSEM) and televised live on AP1 HD, has seven teams vying for the coveted title, with national and international players lining up for each size.

As the first-ever NSL reaches its end stage, Kathmandu Rayzrs FC—the top team on the table based on round robin matches—now looks to secure the title.

Under the expert coaching of Nepali football legend Bal Gopal Maharjan, Kathmandu Rayzrs plays Dhangadhi FC in the final on May 15.

Owned by the MAW Enterprises—one of the biggest and most diverse conglomerates in the country—the Kathmandu Rayzrs is sponsored by MAW’s most popular import—Yamaha motorcycles. Vishnu Agarwal, Managing Director of MAW and owner of Kathmandu Rayzrs, talks to Sunny Mahat of ApEx about the team and the private sector’s involvement in sports.

What made MAW decide to own and operate a football team?
I would call it an opportunity we got. MAW has always been associated with football. We have sponsored football tournaments in the past and have also been giving Yamaha motorcycles to outstanding players every year in coordination with ANFA.

Yamaha motorcycles are designed for the youth and performance driven. And as football is a popular sport among the youth, we decided to sponsor Kathmandu Rayzrs to connect more with them.

Any reason behind calling the team Rayzrs?
You can say the Kathmandu Rayzrs is basically named after the Yamaha Ray ZR scooter, a popular and high selling two-wheeler in the 125cc category. Performance-wise, the Ray ZR is a scooter with maximum mileage and maximum pickup, hence the name for our team.

How do you find the league without live spectators?
It is a rather sad situation. We were really excited about the NSL and looking forward to huge public participation but the ongoing Covid crisis has changed everything. Still, we are satisfied with our team’s performance and how the league has shaped. Covid-19 stalled some of our plans for this year but we hope to do better in the coming years.

Does MAW have other plans of investing in sports?
We plan to make our presence felt on fields besides sports too. As for sports, we do not have any other plans now. At present, we are only exploring the possibilities of taking Kathmandu Rayzrs FC to greater heights.

What kind of contribution can private organizations investing in sports make?
Whenever private organizations are involved, the concerned sport benefits. Not only in Nepal, we see the same phenomena around the world. It is appreciable to see people putting effort to rope in private organizations into sports. We have to encourage and support sports of all kinds.