Fintech is going like hotcakes at the moment in the Indian startup ecosystem. In fact, it’s been this way since the November 2016 demonetisation in India. Besides pushing people towards cashless transactions, Prime Minister Narendra Modi’s masterstroke opened the floodgates of opportunities for companies to unleash a never-ending wave of digital financial products on Indian consumers.
Riding on the wave of increased financial transactions and the digital push in the economy, online insurance aggregator PolicyBazaar registered a standalone growth of 383% and consolidated growth of 331% (along with PaisaBazaar, the loan and credit card aggregation platform of PolicyBazaar).
PolicyBazaar started its operations in 2008 as a web aggregator and comparison website for insurance products. Later, in February 2014, it started PaisaBazaar — its financial advisory platform — thereby marking its entry in the digital lending space.
A few weeks earlier, we analysed the financial performance of another leading fintech player BankBazaar. While BankBazaar clocked a revenue of INR 71.16 Cr ($10.38 Mn) in FY17, it showed little growth compared to FY16. With an almost 4X growth and a consolidated income of INR 76.45 Cr ($11.15 Mn) in FY17, PolicyBazaar has caught up with BankBazaar.
While BankBazaar offers insurance, credit card, and loans on a single platform, PolicyBazaar offers insurance on the PolicyBazaar platform and loans and credit cards on PaisaBazaar. It is interesting to note how PolicyBazaar, by selling insurance through one platform and loans and credit cards through another has been able to clock a higher growth rate than BankBazaar.
This prompted us to look at the financials of the PolicyBazaar and PaisaBazaar separately to assess the extensive growth registered by the company.