MICROCAPITAL BRIEF: In Response to COVID-19 Pandemic, Khalti Broadens E-commerce Platform to Offer Deliveries from MSMEs to Customers in Nepal

Khalti, a Nepal-based provider of digital financial services, has modified its digital platform to support micro-, small and medium-sized enterprises (MSMEs) in Nepal, including small shops known as kirana stores, with the support of the UN Capital Development Fund (UNCDF). Before the COVID-19 pandemic, Khalti offered a service through which enterprises could open digital storefronts to sell their services and collect payments. In adjusting to the pandemic, Khalti started listing basic necessities for sale, with kirana stores fulfilling the online orders and Khalti arranging for the delivery of the purchases from the kirana stores to customers.

During the pilot period, 690 MSMEs in the Kathmandu Valley, of which 240 are women-owned, completed 213,000 transactions, totaling USD 640,000. As of April 2021, at the end of the pilot project, 4,200 consumers were using the service regularly. By September 2021, Khalti had registered 750 MSMEs and 10,000 customers. Of these, 1,600 received training on the use of the platform, thus increasing their digital literacy.

Launched in January 2017, Khalti is operated by Sparrow Pay and controlled by Nepal-based Janaki Technology. Among Khalti’s services is facilitating payments via 8,000 points of sale. The firm’s goal is “to simplify lives of people by bringing financial inclusivity to every individual in Nepal and take the payment industry from offline to online through best practices.”

Established in 1996 and headquartered in the US city of New York, UNCDF endeavors to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organization operates in 47 low-income countries in Africa, Asia and the Pacific with a particular focus on countries emerging from crises. For 2020, UNCDF had a budget of USD 75 million and supported initiatives providing financial services to 3 million unbanked and underbanked clients.

By Sheen Gupta, Research Associate

Sources and Additional Resources

UNCDF press release
https://www.uncdf.org/article/7379/digitizing-msmes-kirana-stores-in-nepal

Khalti homepage
https://khalti.com/

Janaki Technology homepage
https://janakitech.com/

Previous MicroCapital article on UNCDF
https://www.microcapital.org/microcapital-brief-empire-mosabi-orange-uncdf-seek-to-boost-financial-inclusion-in-sierra-leone-with-focus-on-financial-literacy-recruiting-women-as-mobile-money-agents/

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