Pepper Group, a global consumer finance company, announced on Monday that it would invest $150 million to establish a fintech startup in India under its Pepper Money brand over the next four years.

The new startup would launch in the second half of 2023 under the leadership of former FlexiLoans co-founder Abhishek Kothari. The company aims to deliver consumer finance products to over 15 crore households in Tier 2 and 3 cities.

Pepper Money India plans to hire over 200 people to build a strong network of strategic partnerships, including co-branded card partnerships and collaborations with co-lenders.

Pepper Group manages $21 billion in assets under management (AUM) of self-generated loans through its Pepper Money brand and another $55 billion in AUM of third-party loans through its Pepper Advantage brand.

With a presence in Australia, the United Kingdom, Europe, South Korea, Japan, and South-East Asia, the firm says the launch of Pepper Money India represents a long-term commitment to the Indian market.

Mike Culhane, Group CEO of Pepper, said that the Indian economy has been among the high-growth performers in recent years and can become one of the company’s largest markets in the next five years.