Policybazaar parent net loss down to Rs 12 Cr in first quarter of FY24

The losses incurred by PB Fintech, the parent company of Policybazaar and Paisabazaar, were, however, 33% higher than the previous quarter that ended in March 2023.

Policybazaar parent net loss down to Rs 12 Cr in first quarter of FY24

Monday August 07, 2023,

3 min Read

PB Fintech, the parent company of PolicyBazaar and Paisabazaar, reported a sharp narrowing of losses in the first quarter of the current financial year (Q1 FY24). The company netted a loss of Rs 12 crore compared to Rs 204 crore in the corresponding period last year.

However, the losses were 33% higher than the previous quarter that ended in March 2023 (Q4 FY23).

The company had narrowed down its losses to Rs 9.34 crore in the March quarter this year while announcing breaking even at the operating level.

PB Fintech’s revenue from operations (consolidated) followed a similar pattern, where it was up by 32% YoY to Rs 665.58 crore for the April-June 2023 period, but was down by almost 23% compared to the revenue generated in the first three months of the year.

The company’s revenue was Rs 869 crore in Q4 FY23 and Rs 505 crore in the corresponding quarter last year.

While expenses remained nearly steady YoY—Rs 768 crore earned in the quarter gone by compared to Rs 756.79 crore in Q1 FY23—it was down almost 20% from the quarter prior where it stood at Rs 960 crore.

Interestingly, PB Fintech saw a sharp decline in its advertisement cost at Rs 198.85 crore, down from Rs 289.8 crore last year, and Rs 456.54 crore in the March quarter. At the same time, its other expenses ballooned almost 182% to Rs 133 crore compared to the quarter last year.

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Credit business and new initiatives

The company had previously announced that its existing businesses, comprising Policybazaar and Paisabazaar, have been adjusted EBITDA positive. “For the last five quarters, adjusted EBITDA has improved at an ARR of over Rs 200 crore,” it said in an exchange filing.

It further stated, “Our consolidated adjusted EBITDA was a positive Rs 23 crore for Q1, an improvement from minus Rs 66 crore same quarter last year, an increase of Rs 89 crore.”

PB Fintech said it sourced Rs 3,011 crore worth of insurance premiums in Q1 FY24, marking a growth above Rs 2,430 crore in Q1 FY23, the exchange filing read.

The company said it has seen continuous improvement in customer onboarding, service, and claims support and it maintains a CSAT (Customer Satisfaction) of 88%.

In the credit business, the company has a run rate of Rs Rs 16,000 crore disbursal and 5.8 lakh credit card issuance on an annualised basis (July 2023). About 36.9 million customers have accessed credit scores on its platform.

The new initiatives recorded operating revenue of Rs 149 crore, an 11% rise YoY, while losses in new initiatives stood at Rs 46 crore—down from Rs 71 crore.

On Monday, PB Fintech's shares closed 1.73% higher at Rs 794.50 on NSE.

Capital infusion

PB Fintech’s board approved an infusion of up to Rs 700 crore capital in its subsidiary, Policybazaar Insurance Brokers, for FY24 and FY25, to meet the subsidiary’s general operating expenses, enhance brand awareness, office presence and strategic initiatives, it said.

It also approved the infusion of up to Rs 200 crore in another subsidiary, Paisabazaar Marketing and Consulting, and Rs 200 crore in PB Fintech FZ-LLC, its UAE arm. 

(The story was updated with additional information on capital infusion by the group into its subsidiaries)

Edited by Kanishk Singh