Pepper Group to Launch Pepper Money: Fintech Startup for Indian Market

Global consumer finance company, Pepper Group, has announced its plans to enter the Indian market with a new fintech startup under the brand name Pepper Money.

The company will invest $150 million over the next four years to establish its presence in India, targeting the untapped potential of smaller cities.

Pepper Money aims to revolutionize consumer finance in Tier 2 and 3 cities, leveraging the country’s impressive economic growth and a young, tech-savvy population. Former FlexiLoans co-founder Abhishek Kothari will be at the helm.

Expansion into the Indian Market

Pepper Group, known for its successful operations in Australia, the UK, Europe, South Korea, Japan, and Southeast Asia, is making a long-term commitment to the Indian market.

Recognizing India’s high-growth performance and favorable demographic trends, Pepper Group plans to launch its fintech startup in the second half of 2023. The company believes that India has the potential to become one of its largest markets within the next five years.

Mike Culhane, the Group CEO of Pepper, expressed confidence in the Indian economy, highlighting the country’s young population and high smartphone adoption rates.

He said, “India has the potential to become one of the largest markets for us in the next five years.” Culhane’s optimism stems from India’s status as a high-growth performer in recent years.

Pepper Money will tap into the vast market potential of smaller cities in India, particularly those showing signs of economic growth and increased disposable income.

The fintech startup will focus on serving over 15 crore households in Tier 2 and 3 cities. By localizing and personalizing financial products, Pepper Money intends to transform the consumer finance experience for these populations.

Leadership and Expertise

Heading the Indian operations is Abhishek Kothari, a seasoned fintech entrepreneur and co-founder of FlexiLoans.

Kothari’s deep understanding of the consumer landscape and experience in scaling consumer finance businesses will be instrumental in establishing Pepper Money as a leading player in the Indian fintech industry.

Pepper Money India plans to build a solid network of strategic partnerships, including collaborations with co-lenders and co-branded card partnerships.

These partnerships will enable the fintech startup to expand its reach and offer innovative financial solutions tailored to the needs of Indian consumers.

To support its ambitious growth plans, Pepper Money India aims to hire a team of over 200 professionals. This team will work towards delivering localized financial products and implementing the company’s strategies in the Indian market.

Impressive Asset Under Management

Pepper Group boasts $21 billion in assets under management (AUM) of self-generated loans through its Pepper Money brand.

Additionally, it manages an impressive $55 billion in AUM of third-party loans through its Pepper Advantage brand, providing a solid financial foundation for its Indian venture.