Policybazaar Parent PB Fintech’s Q2 Loss Declines 89% YoY To INR 21 Cr

PB Fintech, the parent company of insurtech platform Policybazaar, saw its net loss decline over 89% year-on-year (YoY) to INR 21 Cr in the quarter ended September 2023. The company had reported a net loss of INR 187 Cr in the second quarter (Q2) of the financial year 2022-23 (FY23). 

However, net loss widened from nearly INR 12 Cr in Q1 FY24.

Revenue jumped 42% to INR 812 Cr in Q2 FY24 from INR 573 Cr in the year-ago quarter. Sequentially, it rose 22% from INR 665 Cr. 

Revenue from Policybazaar and PaisaBazaar, which are classified as core businesses, jumped 46% to INR 597 Cr in the quarter ended September 2023 from INR 410 Cr in the year-ago period. 

Meanwhile, expenses continued to be a major headache for the company, rising more than 11% to INR 910 Cr in Q2 FY24 from INR 820.6 Cr in the year-ago period. Total expenditure jumped 18% from INR 768.4 Cr in Q1 FY24.

Employee benefits and advertising expenses accounted for the biggest chunk of expenditure. Employee-related costs stood at INR 422.84 Cr and marketing costs at INR 247.35 Cr during the quarter under review. Together, the two accounted for nearly 73% of the total expenses. 

It was the third consecutive adjusted EBITDA-positive quarter for PB Fintech. The consolidated EBITDA, excluding ESOP costs, stood at INR 13 Cr in Q2 FY24 as against an adjusted EBITDA loss of INR 53 Cr in Q2 FY23. The metric, however, declined 43% quarter-on-quarter (QoQ) from INR 23 Cr. 

Even as it targets breakeven by FY24 end, employee stock option plan (ESOP) cost the company a hefty INR 102 Cr in Q2 FY24. The number, however, was up 2% QoQ and down 54% YoY.

Meanwhile, the startup said the adjusted EBITDA of its core businesses improved to INR 68 Cr in Q2 FY24 from INR 12 Cr in the year-ago period. 

Policybazaar clocked insurance premiums worth INR 3,475 Cr in Q2 FY24, up from INR 2,545 Cr in Q2 FY23. 

Meanwhile, credit business Paisabazaar also continued to scale, disbursing loans worth INR 4,139 Cr in Q2 FY24, up 41% from INR 2,922 Cr in Q2 FY23. The lending arm’s annualised run rate for disbursals stand at INR 16,500 Cr, while it is on path to issue 6 Lakh credit cards on an annual basis. 

“Credit business continues to grow very well and has been adjusted EBITDA positive since December 2022. We are now at the annualised run rate of INR 16.5K Cr disbursal and about 6 Lakh credit card issuance on an annualised basis. We added about 2.24 Mn new consumers who accessed their credit score through our platform in Q2 FY24, bringing our total credit score consumer base to 39 Mn,” the company said. 

PB Fintech Fires On All Cylinders

PB Fintech’s new initiatives vertical, which include seller aggregator platform PB Partners and the UAE business, reported a revenue of INR 215 Cr in Q2 FY24 as against INR 164 Cr in Q2 FY23. 

EBITDA loss for the vertical improved to INR 55 Cr during the quarter ended September 2023 from INR 65 Cr in the year-ago period. 

PB Fintech also noted that its UAE premium grew by 2.5X YoY.

Meanwhile, the company reiterated its focus on new initiatives arm, noting that it continues to strengthen leadership in the vertical while building further efficiencies. The company also claimed that the agent aggregator platform continues to lead the market in scale and efficiency of operations.

Elaborating further, the fintech major said that the new initiatives vertical has ‘increasingly’ moved its business  towards ‘smaller and higher quality advisors.’ PB Fintech added that the vertical accounts for the highest proportion of non-motor business and has a presence in 16,300 pincodes across the country. 

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