CHANDRA PRASAD DHAKAL, CHAIRMAN, IME GROUP

He is a link between migrant workers abroad and their families here. Before Chandra Prasad Dhakal, no one had thought that transferring money from abroad to Nepal could be a huge business. As a first-generation entrepreneur, Dhakal’s innovation in the financial sector was to introduce a formal system, whereby migrant workers’ hard earned money reaches to their families swiftly, but through legal channels. Riding on the success of the remittance business, Dhakal has expanded his interests to banking, automobiles, travel trade and hydropower.

Dhakal talks to The Kathmandu Post

I used work at the Bishal Bazar branch of Rastriya Banijya Bank. While I was working there, I had a feeling of doing something on my own. As some of my friends were already into carpet and garment business, we decided to start cargo business in 1992. We used to handle cargo of carpet/garment exporters.

In the early 2000s, a lot of Nepalis went to Malaysia as migrant workers. As there was no formal system from the private sector to bring in remittance, most of the remittances used to enter Nepal through the informal channel—hundi. Even those sending money from formal banking channels were facing problems of delayed payment.

I would say this brought the International Money Express (IME) to existence. It was a huge opportunity, whereby we could serve the people and do the business at the same time. Hence, we approached the Nepal Rastra Bank (NRB) to pitch our concept of bringing in remittances through formal channel involving the banking system.

IME started business from Malaysia. When we sought permission from Malaysian authorities in 2001, the Malaysian government reacted positively and their central bank gave us the permission. This was the beginning of an exciting business journey.

Initial days were quite tough as we had to convince the people to send money through us—a private player. IME was the first money transfer company established by the private sector in Nepal. Winning people’s trust was difficult, as they were sceptic whether their money will be delivered to their relatives and on time. A lot of hard work was required in the early days to convince migrant workers to send money through IME. I still remember—our first transaction was of Rs 70,000. There was an incident which I still remember. We had organised a programme at Raddison Hotel during the first year of IME’s operation, in which a media person asked me about IME’s monthly remittance target. Then, I had told him that we could bring $2 million per month. Later, I realised that it was an ambitious target.

But three years later, IME became synonymous to remittance. It was the combination of excellent service along with promotional campaign that was responsible for IME’s success. From the start, we were focused on the robust system, whereby the remittance receiver could get the money swiftly. Our business model was to be present in places where Nepalis are. Therefore, IME is there where Nepalis are.

We have two types of network—one is our own, while another is of Moneygram our partner. We have also recently started bringing in remittance from India.

One of our biggest achievements over the last 10 years is that we have earned a reputation across the migrant worker community. They have the trust on us. We are very popular in Malaysia and the Mideast. Even in South Korea, where we do not have direct presence and we work through bank’s network, the IME brand is popular. Our remittance model from Malaysia to Nepal was even applauded by the World Bank and Asian Development Bank.

When we started the money transfer business through IME, remittances from IME came through various banks. But after banks started the remittance business, we had to compete with them. We sell foreign currency to these banks, and at the same time, we also compete with them. It also taught us that remittance and banking are inseparable. Therefore, we felt the need to have our own banks and financial institutions and we got one. We are now getting into the hydropower sector. We have a huge group of people involved in hydropower projects. In the automobile sector, we have won the dealership of an Indian heavy-duty automobile manufacturer AMW.

We have to take forward the existing projects and businesses. Our focus on remittance business will continue, adopting new technologies. If someone asks me about my target, then I don’t have such. I believe in Karma. And, I still have miles to go.

Published on: 20 February 2012 | The Kathmandu Post