Pepper Group, a global consumer finance company, announced on Monday that it will invest $150 million over the next four years to establish a fintech company in India. The fintech, under the Pepper Money brand, will be led by Abhishek Kothari, who previously co-founded FlexiLoans.
The company aims to hire a team of more than 200 people to deliver consumer finance products with a localised approach to the market.
With plans to launch in the second half of 2023, Pepper Money India will introduce personal finance products to target 15 crore households in Tier 2 and 3 cities, which are witnessing an increase in economic growth, the company said in a statement.
Pepper Money India will offer a range of financial products to consumers in India, including personal loans, credit cards, and BNPL (buy now, pay later) services.
The investment in Pepper Money India is part of Pepper Group's broader strategy to expand into emerging markets. The company already has operations in the UK, Australia, and New Zealand.
"With 65 per cent of the population under 35 years of age and over 90 per cent smartphone adoption between 18-35 years, India has the potential to become one of the largest markets for us in the next 5 years," said Mike Culhane, Group CEO of Pepper.
"Kothari's fintech experience and deep understanding of the consumer will be instrumental in building the Pepper Money brand across India," he added.
The investment in Pepper Money India is a vote of confidence in the Indian fintech sector, which has grown rapidly in recent years, with the number of fintech startups in India increasing from 100 in 2015 to over 2,000 in 2022.
The government, which has also been supportive of the fintech sector, introduced a number of policies to promote innovation and growth. These policies include the introduction of a unified payments interface (UPI) and the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, which has provided over 400 million Indians with a bank account.