Policybazaar Parent’s Losses Widen To INR 298 Cr, Revenue Jumps 31% In Q3 FY22

PB Fintech, which operates policy aggregator platform Policybazaar and digital consumer credit marketplace Paisabazaar saw its losses widen by 45.7% in Q3 of FY22. PB Fintech posted a loss after tax of INR 298 Cr in Q3 of FY22, a significant jump from INR 204.4 Cr in Q2 of FY22. The startup’s loss grew by 15X from INR 19.5 Cr it posted in Q3 of FY21. 

PB Fintech has clocked a total earning through sales worth INR 367.2 Cr in the Q3 of FY22. This is almost a 31.3% increase in revenue from operations from the Q2 of FY22 where PB Fintech had witnessed earnings of INR 279.5 Cr. PB Fintech had earned INR 212 Cr during Q3 of FY21. 

Under its revenue from operations, insurance web aggregator and insurance broker services earned INR 196.3 Cr in Q3 of FY22. PB Fintech earned INR 33.5 Cr from its other sources, thus taking its total revenue earned to INR 400.8 Cr in Q3 of FY22. 

PB Fintech through Policybazaar’s insurance premium has earned INR 1,796 Cr, a 68% year-on-year growth from INR 1,067 Cr in Q3 of FY21. Its credit disbursal business (Paisabazaar) grew by 94% year-on-year to INR 1,926 Cr .

PB Fintech spent INR 698.8 Cr in Q3 of FY22, a 38.5% rise from INR 504.5 Cr in Q2 of FY22. In Q3 of FY21, PB Fintech has shelled out INR 247.9 Cr in Q3 of FY21. 

In the last quarter of the ongoing financial year, PB Fintech, the parent company of Policybazaar, spent the most  on employee benefit expenses. It spent INR 394.7 Cr for employee benefits expense which mostly comprises salary, gratuity, and PF contribution, among others. 

The above is almost 56% of the total expense. This is also a 42.75% rise from what the startup had spent – INR 276.5 Cr – for the same in Q2 of the ongoing financial year. In the same quarter of last financial year, the startup had spent INR 126.7 Cr for employee benefits. 

Advertisement and promotion was the second most heavy expense after employee benefit spent. In Q3 of FY22, Policybazaar’s parent shelled out INR 236 Cr for the same, a significant jump than INR 161 Cr it spent in Q2 of FY22.

Founded in 2008 by IIT Delhi and IIM Ahmedabad alumni Yashish Dahiya, Alok Bansal and Avaneesh Nirjar, PolicyBazaar is an online platform allowing users to purchase insurance policies, ranging from life, car and two-wheeler insurances. The startup does this as it features products from all major insurance companies in India, to help its users decide the policy which suits them the best.

The startup’s parent company PB Fintech last year in November went public to raise INR 6,017 Cr. Post a strong listing on November 15th, 2021, its shares had largely been on a downturn in tandem with the broader markets amid concerns over the Omicron variant of Covid-19.

On February 8, PB Fintech’s shares traded at INR 887.40 when the markets closed.