Pepper Money India to launch three to five co-branded cards: CEO
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Pepper Money India’s chief executive officer and founding member Abhishek Kothari told Financial Express in an interview that the company plans to issue three to five co-branded cards in the next two years.
For co-branded credit and prepaid cards, the company will enter into co-branding agreements with banks. However, according to Kothari, the cards would not be tied to pre-approved credit limits.
“There are many layers to the tier-2 market.” A tier-2 young professional and a tier-2 businessman will behave very differently. “I believe we will remain in the three-to-five card range for the next two years,” he said.
Pepper Group announced on Monday that it will invest $150 million over the next four years to develop a financial technology company in India under the Pepper Money brand.
The Pepper Money brand has $21 billion in assets under management (AUM) of self-generated loans. It also owns $55 billion in third-party loan assets via its Pepper Advantage brand.
“With an existing presence in Australia, the United Kingdom, Europe, South Korea, Japan, and Southeast Asia, the launch of Pepper Money India represents a long-term commitment to the Indian market,” the firm stated in a news release.
Former FlexiLoans co-founder Kothari has been appointed to lead the financial technology company in India.
Pepper Money India, which expects to begin in August, would target 150 million families in tier 2 and tier 3 cities. The company intends to hire around 200 people.
While Pepper Money India’s primary focus will be co-branded cards, the company will also offer personal loans. The average loan term will be 12-18 months, with a ticket size of Rs 75,000-100,000.
“The personal loans will have to be tailored to the tier-2 segment.” In this market, we must be synonymous with responsible lending. “As a group, we believe that the product should be easy to understand and encourage positive behaviour in the customer,” Kothari added.
“We’re not in a hurry. My goal is not to accumulate the most AUM in the shortest amount of time. My priority is to learn as much as possible about the consumer so that we can establish a solid ethical lending business in the country.”
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