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Global digital operator VEON has committed an initial $250 million investment in Bangladesh as part of a broader plan to mobilise $1 billion in foreign direct investment, with a joint venture with Square Group set to establish a digital bank.
The investment is being pursued under VEON’s “Invest in Bangladesh NOW” framework, a public-private partnership with the Bangladesh government launched in New York during the UN General Assembly High-Level Week, the company said in a statement.
The joint venture between VEON Digital Financial Group and Square Group has received Bangladesh Bank’s approval for a digital bank licence, marking VEON’s planned entry into full-scale digital banking in Bangladesh.
The initiative builds on Banglalink’s existing payment service provider licence, which supports its Mukto Pay digital payments service.
VEON said its investment plan covers connectivity, digital infrastructure, digital financial services and artificial intelligence. The proposed digital bank will be integrated with Banglalink’s mobile ecosystem to provide financial services to users across the country.
The venture will combine VEON’s technology expertise and global experience with Square Group’s domestic manufacturing, distribution and retail networks.
“Financial inclusion is key to eradicating poverty, and the approval marks an important step toward that goal in Bangladesh,” said Kaan Terzioglu, group chief executive officer of VEON.
Square Group Managing Director Tapan Chowdhury said the company was honoured by Bangladesh Bank’s approval and hoped people would benefit from the new bank once it becomes operational.
Banglalink CEO Johan Buse said the combination of the operator’s nationwide network and distribution system with digital financial services could help expand financial inclusion, particularly among people with limited access to conventional banking.
On September 24, Bangladesh Bank 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 represent initial approvals, with applicants required to meet regulatory and operational conditions before receiving final licences to begin banking operations.
VEON Digital Financial Group had 59 million active financial-services customers across Pakistan, Kazakhstan and Uzbekistan as of the second quarter of 2026.