Veon, Banglalink express interest to invest in Nagad

Veon, parent company of telecom operator Banglalink, showed interest to invest in Nagad, country's second largest mobile financial service (MFS) provider.

Johan Hendrik Martinus Buse, managing director and CEO of Banglalink had sent a letter to Rehan Asif Asad, prime minister's adviser for the Ministry of Posts, Telecomunications and Information Technology expressing VEON's interest in investing in Nagad.

He also requested to hold a meeting to discuss over the issues in the letter sent on 28 March.

"Veon has demonstrated a strategic interest in expanding its presence in digital financial services across markets, including Bangladesh. In particular, Nagad represents a significant opportunity given its rapid growth, unique services, and good distribution network," said the letter.

"A potential partnership or investment could bring technological expertise, improved user experience, and deeper integration with telecom services. Such collaboration could contribute to building a more seamless digital ecosystem that integrates connectivity with financial services, subject to alignment with government policies and regulatory approvals," according to the letter.

Veon's proposal comes as several other foreign companies—including Malaysia's Axiata, as well as Japanese KDDI and South Korean firm Konai —have also expressed interest in investing in or acquiring a stake in Nagad, according to sources.

Veon is a multinational telecommunications and digital services company headquartered in Dubai, United Arab Emirates, with operations spanning high-growth, underserved markets in Asia, Africa, and Europe. Serving nearly 160 million customers, Veon provides converged connectivity, fintech, entertainment, and digital services.

Banglalink, which is the Veon's Bangladesh brand for telecom operation, is also intending to expand in digital banking services as it submitted an application to the Bangladesh Bank for a digital banking licence.

Though, Bangladesh Bank called for application for digital banking license during the interim government tenure but the newly elected government did take any decision in this regard yet.

When talking to The Business Standard, Nagad Founder Tanvir A Mishuk said "Veon initially began discussions with Nagad in 2024 regarding potential collaboration opportunities. However, due to a range of factors, those discussions did not progress at the time."

"Following the formation of the new government, Veon has once again reached out to us, and we are currently exploring a potential strategic partnership," Mishuk said.

While declining to disclose specific details, Mishuk indicated that, in addition to Veon, several other leading international technology and fintech firms have also expressed interest in discussing potential investment and strategic cooperation with Nagad.

Nagad Limited—created by Third Wave Technologies Limited—acts as BPO's (Bangladesh Post Office) master agent, having built the entire technological and operational backbone of Nagad with its own investment.

Thus, BPO holds the interim MFS license, customer data of Nagad, and the customers' funds stored in the Trust Cum Settlement Account (TCSA).

Nagad Limited, however, owns the IT infrastructure, software, middleware, servers, databases, data centres, distribution channels, human resources, fixed assets and operational accounts.

Nagad currently operates under Bangladesh Bank's interim approval granted to BPO.

After the fall of the Awami League government, Bangladesh Bank took over Nagad, restructured its board and appointed an administrator to manage the company on 21 August 2024.

Besides, six officers were appointed as "assistant officers" in the management of Nagad. The next day Bangladesh Bank and postal department officials went to the Nagad office and took control of the entire institution.

Meanwhile, several former Nagad executives—including ex-MD and CEO Tanvir Ahmed Mishuk—are facing legal action for alleged fund embezzlement. Bangladesh Bank has also filed a case against former chairman Syed Mohammad Kamal and 22 others over the alleged fraudulent creation of Tk645 crore in e-money without backing reserves.

Regarding Nagad takeover, Bangladesh Bank's then Governor Ahsan H Mansur said that the postal department did not have the capacity to operate Nagad and announced plans to privatise the MFS. He said new strategic investors would be brought in within three to four months.

Later, the Bangladesh Investment Development Authority (Bida) on 31 August 2025, issued a Request for Expression of Interest (REOI) to appoint a financial advisory firm to sell Nagad.

However, the process remained stuck since then due to ownership dispute as government has no share in this company to sell.

How Nagad is performing

Nagad has the second highest market share with having nearly 3 crore active customer when the number of registered customer is 9 crore as of May this year, according to the company.

The platform processed transactions worth Tk44,639 crore in May, surpassing its previous monthly record of Tk41,469 crore set in March this year. Customers also transacted Tk40,301 crore through Nagad in January. With the latest figure, Nagad has rewritten its transaction milestones in at least four of the last six months.

The mobile financial service provider also broke its single-day transaction record twice during the Eid-ul-Adha week. Transactions through Nagad stood at Tk2,162 crore on 24 May before rising to Tk2,177 crore on 26 May. Earlier, on 20 May, the platform processed transactions worth Tk2,105 crore.