KKR-owned Pepper Advantage is ramping up operations in India, with public sector banks increasingly outsourcing debt services. Mukund Kulkarni, CEO of Pepper Advantage India, said banks are shifting to a more centralised technology-driven model.Pepper is also working with fintech companies that have the digital infrastructure but lack the physical infrastructure to improve debt servicing capabilities. Fraser Gemmell, CEO of Pepper Advantage, said fintechs tend to invest in the front-end and user experience, but capital does not flow into the back-end. This has led to a technology deficit, compelling them to look for cost-effective options, Gemmell said.

Pepper Advantage is a global credit intelligence, management and investment company that helps public sector and private sector banks, fintechs and NBFCs manage their credit portfolios.The company has launched a global tech hub in Pune to drive AI product development. The hub will serve Pepper Advantage’s customer base in India and develop credit technologies for global markets, including the Middle East, Indonesia and South East Asia. The company has presence in 50 cities servicing 6,000 pin codes and has been able to bring in a 15-20% increase in debt resolution, he said. Personal loans, home loans and credit cards dominate the Indian portfolio.According to Kulkarni, local debt servicing vendors either provide telecommunication solutions, field services or digital tech support. Pepper offers the entire debt lifecycle management from risk assessment, sourcing and also a digital platform for customer onboarding and collections.