Retail wealth management firm Bajaj Capital is planning to tap the private equity space to raise funds to meet its ambitious growth plan in the underserved financial products distribution market.
After the transformation in the past two years, the company has witnessed phenomenal growth in both its topline and bottomline, Bajaj Capital Chief Executive Officer Rahul Parikh said.
In the previous two financial years, revenue increased 70 per cent but profit surged 13 times, he said, adding that the goal is on 10x 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.
"While IPO (initial public offering) is the long-term intention of the promoters to create and share value with all stakeholders, in the near term, we have ambitious growth plans and are open to fundraising for accelerating our growth journey with a private equity investor," he added.
Being a debt-free firm, he said, the company is now ready for the next level of growth and strategy is in place to achieve the exponential growth.
The company aims 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 trillion in the next 5 years.
Besides, there is also plan of expanding its touchpoints, which are 270 currently, to achieve accelerated growth in retail, digital and wealth management segments.
To achieve its growth objective, he said, the company is investing in technology to provide wealth management solution to its customers with unique tech-plus-touch model backed by artificial intelligence and data analytics.
At the same time, he added, the company has invested in its core strength, its people by providing them additional tools and resources to increase efficiency.
The company has also strengthened its research function, so that customers continue to get right guidance to invest hard-earned money.