Introduction to F1Soft International

F1Soft International Pvt. Ltd. (commonly known as F1Soft) is Nepal's leading fintech company and a pioneering force in digital financial services (DFS), dedicated to democratizing access to finance through innovative technology solutions. Founded in 2004, F1Soft has transformed Nepal's financial landscape by developing and deploying enterprise products that enable seamless mobile financial services, transaction banking, digital payments, and beyond. As a concentric conglomerate with fintech at its core, it operates an ecosystem spanning digital wallets, payments, lending, neobanking, insurance, remittances, big data analytics, and more, connecting over 26 million users to affordable, secure financial tools. With a workforce exceeding 1,200 professionals—primarily in Nepal—it partners with 50+ banks and financial institutions (BFIs), powering 90% of Nepal's BFIs and facilitating billions in annual transactions.

Headquartered in Lalitpur, Nepal, F1Soft emphasizes inclusivity, scalability, and security, fostering economic progress by bridging the gap between underserved populations and formal digital finance. Recognized as Nepal's highest taxpayer in the IT sector, it has earned accolades for employee experience and innovation. As of October 2025, F1Soft continues to expand regionally, with a business center in Dubai, while maintaining its innovation hub in Kathmandu Valley. Its impact is evident in metrics like $25B+ yearly transaction volume via Fonepay and 3M+ active eSewa users, positioning it as a key driver of Nepal's digital economy amid rising mobile penetration and regulatory support for DFS.

History and Founding

F1Soft was founded in 2004 by Biswas Dhakal, a visionary entrepreneur born in 1981 in Bharatpur, Nepal, during his freshman year at Nepal College of Information Technology. Starting as a modest software development firm focused on IT services for banks and corporates, it quickly pivoted to mobile financial services amid Nepal's nascent digital banking needs. Dhakal, selected for the U.S. Department of State's International Visitor Leadership Program (IVLP) and the 2016 Global Entrepreneurship Summit, bootstrapped the company with a focus on transaction banking solutions.

Key milestones include:

• 2004-2008: Inception in Kathmandu as a software provider for banks; built initial clients in financial institutions and corporates.
• 2009-2012: Launched eSewa, South Asia's first digital wallet and Nepal's inaugural payment gateway, revolutionizing payments; secured early partnerships with telecoms and media houses.
• 2013-2016: Expanded to omnichannel banking with products like BankSmart and FoneBank; grew to serve 70%+ of BFIs; Dhakal founded subsidiaries like CashOnAd and Logica Beans.
• 2017: Raised undisclosed Series B funding led by Kantipur Media Group; eSewa granted Payment Service Provider (PSP) license by Nepal Rastra Bank.
• 2018-2022: Introduced Fonepay as Nepal's largest interoperable payment network; launched digital lending (Foneloan) and neobanking (OrangeNXT); established eXtensoData for AI/big data and eSewa Money Transfer for remittances; workforce surpassed 600.
• 2023-2024: Merged with eSewaPasal to bolster e-commerce; gearing improved to 1.0x (from 1.8x); ~55% CAGR in net profit over three years ending mid-2024; recognized as top IT taxpayer.
• 2025: Marked 21st anniversary with leadership transition; ICRA Nepal rated [A] for strong operational profile; ongoing expansions in InsureTech (Foneinsure) and loyalty (Fonepoints).

From a student-led startup to a fintech powerhouse, F1Soft's evolution mirrors Nepal's digital shift, with subsidiaries now operating as independent verticals.

Mission, Vision, and Values

• Mission: To democratize financial services, creating new possibilities for economic progress and individual prosperity by leveraging technology to make finance accessible, inclusive, and efficient for all Nepalis.
• Vision: Build a seamless digital financial ecosystem that empowers individuals, businesses, and communities, fostering sustainable growth and financial well-being in an evolving economy.
• Core Values:
• Inclusivity: Removing barriers to ensure equal access, connecting underserved users to formal finance.
• Innovation: Pioneering scalable, secure solutions like digital wallets and AI-driven lending to drive market adoption.
• Integrity and Security: Prioritizing data protection and ethical practices in all transactions.
• Excellence: Committed to adaptability and customer-centricity, reducing operational complexities for partners.
• Sustainability: Contributing to Nepal's economy as the top IT taxpayer, with a focus on employee growth and community impact.

These principles guide F1Soft's "tech stack" philosophy, transforming financial challenges into opportunities.

Products and Services

F1Soft delivers a comprehensive ecosystem of digital solutions, evolved into standalone verticals, emphasizing omnichannel integration, BaaS (Banking as a Service), and HITL (human-in-the-loop) AI for finance. Products serve 90% of Nepal's BFIs, with APIs for seamless deployment.

Services include custom DFS consulting, with a focus on Nepal's regulatory compliance (e.g., NRB PSP licenses).

Leadership Team

F1Soft's leadership blends entrepreneurial vision with banking and tech expertise, driving its conglomerate structure.

The board includes domain experts; recent transition emphasizes continuity and acceleration.

Global Presence and Operations

• Headquarters: Lalitpur, Nepal (innovation center in Kathmandu Valley; HQ at Kalikasthan, Dillibazar).
• Key Offices: Dubai, UAE (business center for regional expansion); subsidiaries across Nepal for verticals like eSewa and Fonepay.
• Operations Model: Nepal-centric (90% workforce), with hybrid remote/in-office for 1,200+ employees; distributed development for BFIs; serves 2 countries primarily, eyeing South Asia.
• Workforce: 1,200+ (up from 600 in 2023); diverse, with strong employee experience (HR Meet 2024 award); average software engineer salary ~NPR 64,167/month.

Partners with 50+ Nepali BFIs; ICRA Nepal rating [A] for operational strength.

Funding, Financials, and Investors

F1Soft remains privately held, with funding focused on early growth; no recent rounds post-2017.

• Total Funding: Undisclosed; single round from 1 investor.
• Financial Highlights: Est. annual revenue $17.8M (2025); gearing 1.0x (mid-2024); ~55% CAGR in net profit (3 years to mid-2024); highest IT taxpayer in Nepal; transaction volumes: $25B+ (Fonepay yearly).
• Acquisitions/M&A: Merged with eSewaPasal (recent, date TBD); acquired by First Global Data (historical).
• Investor Relations: Private; focus on organic growth and partnerships.

Recent News and Developments

• March 2025: Celebrated 21st anniversary; appointed Siddhant Thakuri as President, succeeding Biswas Dhakal; highlighted innovations in mobile banking, wallets, and lending.
• December 2024: ICRA Nepal affirmed [A] rating for strong management, capitalization (gearing 1.0x), and fintech leadership; noted 55% profit CAGR.
• 2024: Won Excellence in Employee Experience Award at HR Meet 2024; partnered with PhonePe and Hotel Association of Nepal (HAN) for UPI adoption via Fonepay at Fewa New Year Festival; launched My ASBA for seamless IPO applications in banks.
• Ongoing: Bankers’ Meetup 2024 keynote by Brett King on embedded finance; hiring for roles like Assistant Product Manager; expansion in eHealth, EduTech, InsureTech.

Future: Accelerate M&A, regional growth (Dubai hub), and AI integrations for DFS.

Challenges and Future Outlook

F1Soft navigates challenges like Nepal's regulatory evolution (e.g., NRB data privacy rules), cybersecurity threats in high-volume transactions, and competition from global players like PhonePe. Economic factors, including remittance fluctuations and digital literacy gaps, pose risks, alongside talent retention in a competitive IT sector.

With a 21-year legacy, [A]-rated stability, and 26M+ users, F1Soft is primed for 30-50% YoY growth, targeting top-5 revenue status by 2026. Its vertical ecosystem and Dhakal-Thakuri leadership position it to lead South Asian fintech, emphasizing inclusive innovation amid Nepal's 70%+ mobile penetration.

For more, visit f1soft.com or LinkedIn updates.