Retail wealth management firm Bajaj Capital is looking to raise additional funds to boost its expansion drive in the underserved financial products market through private equity investments.
The company has seen phenomenal growth in both revenues and profits due to the transformation in the past two years, Bajaj Chief Executive Officer Rahul Parekh told news agency PTI. Parekh said that the company has increased its revenue by 70% in the last two financial years while profits have jumped a whopping 13 times, adding that the goal is 10 times value creation over the next five years.
“So, for the next phase of growth, the company would need capital and we are exploring external funding option by roping in private equity partner," he said and added that an Initial Public Offering is indeed the long term intention of the promoters to “create and share value with all the stakeholders”, the company is open to funding its ambitious growth plans through a private equity investor.
What works for the company is that it’s debt-free, he claimed and added that a strategy is already in place to achieve exponential growth.
Bajaj Capital is looking to expand its nationwide client base from the existing 3.9 million to 6 million and grow asset under management 10-fold to Rs 1 lakh crore in the next five years. To achieve this objective, the company is investing in technology which can provide wealth management solutions to its customers with a unique model that is backed by artificial intelligence and data analytics.
Apart from investing in technology, the company has also poured money in providing tools and resources for its large workforce to increase their efficiency. At the same time, the company is looking to strengthen its research function which could help its customers get the right guidance to invest their money.