Pepper Group To Invest $150 Mn To Launch Fintech Startup In India

Global consumer finance company, Pepper Group, has unveiled plans to invest USD 150 million in the launch of a fintech startup in India under its Pepper Money brand. 

Spearheaded by former FlexiLoans co-founder Abhishek Kothari, the startup aims to tap into the potential of India's growing economy and young population. With a focus on Tier 2 and 3 cities, Pepper Money India seeks to transform the financial experience for consumers in these regions.

Expanding into the Indian Market

Pepper Group, with USD 21 billion in assets under management (AUM) of self-generated loans and an additional USD 55 billion in AUM of third-party loans under credit management, is making a long-term commitment to the Indian market. The company recognizes India's impressive economic growth and the potential for significant market expansion. The launch of Pepper Money India marks the company's entry into the country, joining its existing presence across Australia, the UK, Europe, South Korea, Japan, and Southeast Asia.

Pepper Money Is Targeting Tier 2 and 3 Cities

Pepper Money India aims to cater to the needs of consumers in Tier 2 and 3 cities, which are experiencing increased economic growth. These cities, home to approximately 150 million households, represent a significant market opportunity. By localizing and personalizing financial products, Pepper Money India seeks to transform the financial experience for these consumers, providing them with tailored solutions.

Abhishek Kothari, CEO and founding member of Pepper Money India, emphasized the importance of localizing financial products and personalizing them to meet the unique needs of consumers in Tier 2 and 3 cities. He also highlighted the support of Pepper Group, citing their experience in scaling consumer finance businesses and their potential contributions to product launches and strategic acquisitions.

“With Pepper Money India, our vision is to transform the experience of Tier 2 and 3 consumers by localising and personalising financial products for them …I am delighted to have the support of the Pepper Group, as their experience with scaling consumer finance businesses will be extremely beneficial as we launch new products and consider strategic acquisitions along the way,” said Abhishek Kothari.

Building a Local Team and Strategic Partnerships

Pepper Money India plans to hire a team of over 200 professionals to deliver consumer finance products with a localized approach. The company aims to provide a seamless and personalized experience to its customers. Additionally, Pepper Money India intends to establish strategic partnerships, including co-branded card partnerships and collaborations with co-lenders. These partnerships will further enhance the company's offerings and expand its reach in the market.

Pepper Group's $150 Million Investment Signals Confidence In Indian Economy

Pepper Group's USD 150 million investment in Pepper Money India signals its confidence in the Indian economy and the potential for growth in the fintech sector. With a focus on Tier 2 and 3 cities, the company aims to transform the financial experience for millions of consumers, leveraging its expertise in consumer finance. As Pepper Money India prepares for its launch in the second half of 2023, it aims to establish a strong presence in the Indian market and contribute to the financial empowerment of individuals and households.