PB Fintech’s Q3 Loss Declines 70% YoY To INR 87.6 Cr; Paisabazaar Adjusted EBITDA Positive

PB Fintech, the parent entity of insurtech platform Policybazaar, reported a 70.6% year-on-year (YoY) decline in its consolidated net loss to INR 87.6 Cr in the December quarter of the financial year 2022-23 (FY23), helped by strong growth across businesses.

The startup had reported a loss of INR 298 Cr in the corresponding quarter last year. Meanwhile, its loss reduced by 53% in Q3 from INR 186.5 Cr reported in Q2 FY23.

PB Fintech’s operating revenue jumped over 66% to INR 610 Cr in Q3 FY23 from INR 367.3 Cr in the year-ago quarter. Sequentially, it rose 6.4% from INR 573.5 Cr. 

PB Fintech’s existing businesses, Policybazaar and Paisabazaar, contributed INR 425 Cr to the total operating revenue during the quarter under review, registering a growth of 34% YoY. 

Its new initiatives, which include its insurance seller aggregator platform PB Partners, generated INR 185 Cr in total revenue, a rise of 270% YoY.

In a statement, the company said that its lending vertical Paisabazaar witnessed a 57% YoY increase in credit disbursal to INR 3,021 Cr, and achieved break even on an adjusted EBITDA level in Q3 FY23.

The business achieved sustainable margins on the back of improved processes, better offerings and higher conversion rates, it said, adding that Paisabazaar’s continued investments in brand, product and tech capabilities are expected to improve the margins further.

Paisabazaar provides credit options across consumer segments, enabling the users to take the right decisions using its proprietary algorithms. It is also a platform for checking credit scores. 

Paisabazaar added about 20 Lakh new consumers in Q3 FY23. Its annualised disbursal rate stood at about INR 12,700 Cr at the end of the quarter, while annualised credit card issuance rate stood at 5.2 Lakh.

“Digitisation is becoming significant in lending – currently led by credit cards where ~75% of cards issued in Q3 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. 

Meanwhile, Policybazaar, which provides end-to-end insurance solutions to retail consumers, registered a 70% YoY growth in insurance premium to INR 3,028 Cr. Policybazaar’s ARR for insurance premium stood at over INR 12,000 Cr in Q3 FY23 as against INR 10,000+ Cr in the preceding September quarter.

As of December 31, 2022 data, Policybazaar had 65.4 Mn registered consumers on its platform, including 13.4 Mn transacting consumers — those who purchased at least one insurance policy through the platform.

The adjusted EBITDA loss of new initiatives was roughly the same in Q3 FY23 as in the year-ago period, the company said.

On the expenses front, PB Fintech spent a total of INR 766.4 Cr during the quarter, an increase of 9.7% from INR 698.8 Cr in the corresponding quarter of the previous fiscal year. 

Employee benefit expenses declined 9.7% YoY to INR 356.5 Cr in Q3 FY23. Sequentially, PB Fintech spent 13.1% lower amount towards employee benefits during the quarter. 

While the insurtech major managed to lower its advertising and promotional expenses by over 4% on a quarter-on-quarter basis to INR 298.5 Cr, it rose 26% on a YoY basis. 

Overall, PB Fintech said it is confident of being adjusted EBITDA positive by Q4 this year and delivering the first full year of positive profit after tax in 2023-24. 

The company released the financial results after market hours on Friday. Its shares ended the session 2.4% higher at INR 524 on the BSE.