VEON commits $250m, targets $1bn FDI

The joint venture between VEON Ltd and Square Group has secured approval for a digital bank licence from Bangladesh Bank, as VEON commits an initial $250 million anchor investment toward its goal of mobilising $1 billion in foreign direct investment for Bangladesh across connectivity, digital infrastructure, digital financial services and AI.

The venture combines VEON's global technology expertise with Square Group's manufacturing, distribution and retail networks to reach communities outside conventional financial services, according to a press release.

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The digital bank is expected to integrate closely with Banglalink's mobile ecosystem, extending financial tools to mobile users nationwide.

The licence builds on Banglalink's existing Payment Service Provider licence, which underpins its Mukto Pay digital payments service, VEON said on Friday.

The approval reflects progress under "Invest in Bangladesh NOW!", a public-private partnership with the government that VEON formally launched in New York during UN General Assembly High-Level Week. 

As of the second quarter of 2026, VEON Digital Financial Group serves 59 million active financial services customers across Pakistan, Kazakhstan and Uzbekistan.

"Financial inclusion is key to eradicating poverty, and today's approval marks an important step toward that goal in Bangladesh," said Kaan Terzioglu, group chief executive officer of VEON.

He added that the company was grateful to Bangladesh Bank and the government for their support.

Tapan Chowdhury, managing director of Square Group, said the approval came on the 101st birthday of Samson H Chowdhury, founder chairman of Square Group, and expressed hope that Bangladeshis would benefit from the digital bank's services.

Johan Buse, chief executive officer of Banglalink, said combining the company's nationwide network with digital financial services would help ensure financial inclusion.