Neo-bank Jupiter will appoint a chief executive officer for its non-banking financial company (NBFC) operations in the next three months, says founder and chief executive officer Jitendra Gupta.
“We are trying to bring a professional chief executive officer (for the NBFC business). We are already at an advanced stage of making an offer,” Gupta said.
Recently, Jupiter had obtained an NBFC licence from Reserve Bank of India (RBI), a move that would help the company provide credit lines to customers. The NBFC would be housed under the Amica Financial Technologies, which is Jupiter’s parent company.
As a part of the NBFC operations, the company will offer consumer-focused unsecured loans through the Jupiter application. It will also enter into lending partnerships with financial technology companies.
The average ticket size of these loans is expected to be around Rs 75,000-1 lakh with maximum loan tenure of 18 months.
In the next one year, the company intends to disburse loans worth Rs 700 crore and hit an assets- under-management of around `350-400 crore by sticking to a “purely digital” approach.
“In the personal loan segment, the industry benchmark for asset quality is that your delinquency rate is at around 2.0-2.5%. We will try to maintain it at the benchmark or go lower. We will grow responsibly and not compromise on credit quality for the sake of growth,” he said.
In January, the Bengaluru-based company had raised `100 crore in venture debt funding from Alteria Capital in order to scale up its lending processes.
While the company will continue to focus on scaling its business, Gupta feels that an initial public offering is still far away.
“I do not think we are ready for the IPO related stuff for the next five-to-seven years. We are not that mature in terms of our revenue scale. Let me put it that way. I do not see us reaching a meaningful scale which is IPO-able even in the next five years.”