Pepper Group, a consumer finance company, has revealed its plans to invest $150 million over the next four years to establish a fintech startup in India called Pepper Money. The fintech startup is scheduled to be launched in the second half of 2023 and will be led by Abhishek Kothari, former co-founder of FlexiLoans. Pepper Money will primarily target the 15 crore households in smaller cities that show potential for economic growth, driven by factors such as increased disposable income.
Mike Culhane, Group CEO of Pepper, expressed confidence in the Indian economy, stating that with a population where 65% are under the age of 35 and over 90% have adopted smartphones between the ages of 18 and 35, India has the potential to become one of the largest markets for Pepper Group in the next five years.
Pepper Group already has a presence in Australia, the UK, Europe, South Korea, Japan, and Southeast Asia. The launch of Pepper Money in India signifies the company’s long-term commitment to the Indian market. The group currently manages $21 billion in assets under its Pepper Money brand, with an additional $55 billion in assets under credit management through its Pepper Advantage brand.
Established in 2000 by Mike Culhane, the New South Wales-based company has served over 327,000 Australians in achieving their financial goals through various lending options such as home loans, car loans, equipment and asset finance, and personal loans.
The Indian fintech industry has witnessed significant growth. According to Inc42’s State Of Indian Fintech Report Q1 2023, the market opportunity is expected to reach $2.1 trillion by 2030. Despite challenges posed by funding constraints, with a decline in deal value and count, the future of fintech in India appears promising.
Major players in the Indian fintech sector, such as PhonePe, Google Pay, and Paytm, dominate the market, accounting for a significant market share in terms of transaction count and value. These companies have been actively launching new products and services in India to capitalize on the increasing opportunities.
PhonePe Group recently announced the launch of its Account Aggregator (AA) services, while Paytm introduced its UPI SDK, enabling online merchants to streamline their checkout processes. With the entry of Pepper Money and the continuous innovation in the Indian fintech space, the industry is poised for further growth and development.
