Most Companies Are Operating in Loss” | Why Nepal’s Remittance Companies Are Quietly Dying
Featuring Ritesh Mittal, Founder & Executive Chairman, NepalRemit
In the episode featuring Ritesh Mittal, the discussion revolves around the challenges and dynamics of the remittance business in Nepal. Ritesh shares his journey of starting Nepal Remit 21 years ago, highlighting the initial struggles and the evolving nature of the industry. He explains the remittance process, emphasizing the importance of partnerships with foreign companies to facilitate money transfers. Ritesh discusses the competitive pressures in the industry, where companies often operate at a loss to maintain relationships and market share. He also addresses the issue of informal channels, which account for a significant portion of remittances, and the need for better regulation and support from the government to formalize these channels. Despite the challenges, Ritesh remains committed to the industry and highlights the critical role remittances play in Nepal's economy.
“Self-discipline is the biggest point. I see that as the most important thing for a sustainable business.”
“Whatever remittance is coming, almost 50-60% is still in informal channels.”
“What exactly is the productive sector? Simply moving the economy is the productive sector... (money spent on schools or restaurants) also moves the economy.”
“Entrepreneurship is about jumping into the opportunity wherever you see it and solving the problem if there is one.”
“Our native companies are also playing on loss while processing money... most of the companies are operating at a loss.”
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