VEON plans $1b investment in Bangladesh through digital finance expansion

Global digital operator VEON has committed an initial US$ 250 million anchor investment towards its ambition of mobilising US$ 1 billion in foreign direct investment for Bangladesh, with a joint venture with Square Group set to establish a digital bank as part of the broader investment plan.

The planned investment is being pursued under VEON's "Invest in Bangladesh NOW" framework, a public-private partnership with the Government of Bangladesh that the company formally launched in New York during UN General Assembly High-Level Week, according to a statement of the company.

The joint venture between VEON Digital Financial Group and local conglomerate Square Group has received approval from Bangladesh Bank for a Digital Bank licence, marking VEON's entry into full-scale digital banking in Bangladesh.

The initiative builds on Banglalink's existing Payment Service Provider (PSP) licence, which underpins its Mukto Pay digital payments service.

VEON said its investment ambition covers connectivity, digital infrastructure, digital financial services and artificial intelligence, with the new digital bank expected to integrate closely with Banglalink's mobile ecosystem and extend end-to-end financial services to mobile users across the country.

The venture will combine VEON's global technology expertise with Square Group's domestic manufacturing, distribution and retail networks, with the aim of bringing modern banking services to communities that remain outside the reach of conventional financial services.

"Financial inclusion is key to eradicating poverty, and the approval marks an important step toward that goal in Bangladesh," said Group Chief Executive Officer of VEON Kaan Terzioglu.

He said the company was committed to bringing more of Bangladesh's unbanked population into the formal financial services system and thanked Bangladesh Bank and the Government of Bangladesh for its support in building the country's digital financial infrastructure.

Managing Director of Square Group Tapan Chowdhury said the company was honoured by Bangladesh Bank's approval for the digital bank and hoped people would benefit from its services once it becomes operational.

"VEON brings the right technological expertise and global experience, while Square Group is a trusted name built over the last 68 years," he said.

Chief Executive Officer of Banglalink Johan Buse said the company was well positioned to serve Bangladeshis, particularly those who have lacked access to conventional banking.

"Combining Banglalink's nationwide telecommunications network and distribution with digital financial services enables the new digital bank to ensure financial inclusion for the people of Bangladesh," he said.

Bangladesh Bank on September 24 issued Letters of Intent to five proposed digital banks, including Nova Digital Bank, backed by VEON and Square Group. The other four are bKash Digital Bank, Boost Digital Bank, DK Digital Bank and Kori Digital Bank. The LoIs are initial approvals and the applicants must fulfil regulatory and operational conditions before receiving final licences to launch banking operations.

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

With Bangladesh now set to join that footprint following the approval, the company said the development advances its strategy of building digital financial services ecosystems across its markets and complements recent regulatory and commercial milestones in Kazakhstan.