Markets

Bajaj Capital eyes ₹1-lakh cr AUM by 2025

K.R. Srivats New Delhi | Updated on June 03, 2019 Published on June 03, 2019

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Keen to ride on economic growth, technology-enabled expansion to achieve scale

Bajaj Capital, a wealth management firm, is eyeing 10x (10 times) growth in assets under management (AUM) to about ₹1-lakh crore by 2025, its CEO Rahul Parikh has said.

As on date, Bajaj Capital has AUM of about ₹10,300 crore.

Speaking to BusinessLine, Rahul Parikh said the firm is now “growth-ready” and focussed on strengthening its pan-India presence.

Currently, Bajaj Capital has presence in more than 100 cities and has more than 270 points-of-presence (PoP).

Elaborating on the firm’s strategy, Parikh, who has over two decades of experience in the financial services domain, said that in the top forty cities, Bajaj Capital will have deep physical presence supported by technology.

Beyond 40 cities, Bajaj Capital will expand on a capital-light model — there will be a human face, but will be in the form of an entrepreneur to represent the firm in the market.

“We will focus on building scale and growth over the next couple of years. We believe the wealth creation happening in the smaller cities is growing by leaps and bounds and we want to capture that fast,” he said

Already, Bajaj Capital — which has a legacy of over 50 years and is among the top five players in non-bank retail distribution and non-aggregator space — has assets under advisory of over ₹20,000 crore.

Parikh also said that between 2016-17 and 2018-19 the firm saw consecutive historic high topline and bottomline, while revenue grew 62 per cent. “Our profit has grown 13 times in two years. Networth of the company almost doubled in two years,” he said.

Asked if Bajaj Capital will tap the public markets with an IPO in the near future, he replied in the negative.

Bajaj Capital has been leveraging technology and is now focussed on “human relationships powered by Artificial Intelligence,” according to Parikh. It is providing an Omni channel experience and technology-enabled Touch is delivered through the platform — Bajaj Capital One, he said.

The deployment of Amazon Web Services has improved efficiency, reducing infrastructure cost by 97 per cent and time by 40 per cent, he said.

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Published on June 03, 2019
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