PB Fintech Q2 Results: Loss Narrows 9% YoY To INR 186.5 Cr, Revenue Doubles

PB Fintech, the parent entity of insurtech platform Policybazaar, reported a 8.6% decline in its consolidated net loss to INR 186.5 Cr in the September quarter of the financial year 2022-23 (FY23) as against a loss of INR 204.4 Cr reported in the corresponding quarter of last year, helped by a strong growth in its lending business. 

Sequentially, the company’s loss narrowed 8.5% from INR 204.3 Cr loss reported in Q1 FY23.

PB Fintech’s operating revenue more than doubled to INR 573.5 Cr in Q2 FY23 from INR 279.6 Cr in the same quarter last year. Sequentially, it rose 13.5% from INR 505.18 Cr.

Revenue generated by the core business, which includes Paisabazaar and lending platform Policybazaar, grew 55% year-on-year (YoY) to INR 410 Cr. On the other hand, the adjusted EBITDA for the core business stood at INR 12 Cr during the quarter.

The fintech major’s new initiatives, which include its seller aggregator platform PB Partners, generated a revenue of INR 164 CR, up 10X YoY.

PB Fintech said that its lending business grew 94% YoY during the quarter and currently has a disbursal annualised run rate (ARR) of INR 12,000 Cr, with over 75% disbursals coming from its existing customers who are demonstrating strong repeat behaviour. 

Digitisation is becoming significant in driving lending as about 73% of credit cards issued in Q2 were end-to-end (E2E) digital. “As the lending moves to more E2E digital, a digital marketplace with improving experience like ours would stand to benefit,” the company said in a statement.

By the end of September, Paisabazaar had 3.2 Mn total transacting customers on its platform, with 31 Mn having access to their credit scores on the platform.

Meanwhile, insurtech vertical Policybazaar witnessed a 79% YoY growth in ARR for insurance premium. The company’s current ARR for insurance premium stands at over INR 10,000 Cr, it said.  

Policybazaar processed insurance premiums worth INR 2,545 Cr in Q2 FY23 as against INR 1,423 Cr in the same period last fiscal year, while its total transacting customers stood at 12.8 Mn at September-end. 

“While there has been an industry slowdown in retail protection sales, we delivered 34% growth in health insurance premiums and 29% in life insurance new biz premiums, which is 2 5x of the industry,” the company said.

PB Fintech reiterated that it expects to be adjusted EBITDA positive by Q4 this year.

However, the company’s total expenses jumped over 62% to INR 820.6 Cr during Q2 FY23 from INR 504.5 Cr a year ago, with employee benefit expenses contributing the major position to it.

The fintech major’s employee benefit expenses grew to INR 410.3 Cr during the quarter from INR 276.5 Cr in Q2 FY22. Meanwhile, advertising and promotion expenses also jumped over 93% to INR 312.4 Cr in Q2 from INR 161.4 Cr in the same quarter last year.

It is pertinent to note that after roping in Bollywood actor Akshay Kumar for its advertisement in the last fiscal last year, this year the company got many new faces for business promotions, including actors Pankaj Tripathi, Gulshan Grover, and Shakti Kapoor.

Shares of PB Fintech ended Monday’s session 2.5% higher at INR 386.25 on the BSE.

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