Policybazaar parent's loss widens 55% to Rs 297 cr in Q3, revenue up 73%

Revenue contribution of insurance services slides to 53 per cent in Q3 of FY22 from 68 per cent in the year-ago period

PB Fintech, the parent company of recently listed online insurance aggregator Policybazaar, saw its net loss in the December quarter (Q3) jump 55 per cent to Rs 297 crore, compared to the year-ago period. Meanwhile, the company recorded a revenue growth of 73 per cent to Rs 367 crore in the same period.

While the company’s insurance premiums (through Policybazaar) grew by 68 per cent to Rs 1,796 crore in Q3, credit disbursals (through Paisabazaar) rose 94 per cent to Rs 1,926 crores. Adjusted EBITDA (non GAAP) was a loss of Rs 92 crore, reflecting investment in new initiatives and brand advertising.

According to the company’s financials, its insurance aggregation services accounted for 53 per cent of the total revenue of Rs 367 crore in Q3 of FY22, whereas it made up 65 per cent of the total revenue of Rs 212 crore in the year-ago period.

Yashish Dahiya, Chairman and Group CEO of PB Fintech, said: “Scale is critical to the success of any marketplace. We are currently at an ARR (annual recurring revenue) of over Rs 8,000 crore which is a growth of 60 per cent on a YoY basis. Margins in our existing businesses were maintained at 40 per cent.”

According to him, while renewal revenue is at an ARR of over Rs 210 crore, the renewal book operates at a contribution margin of 90 per cent and will be the biggest driver of the company’s long-term profitability.

Alok Bansal, Executive Director and Group CFO, added “Policybazaar premium has grown 45X in the last 8 years and Paisabazaar’s loan disbursals are 46X higher over the last 7 years. Given the low levels of insurance and credit penetration in the country and increased digitisation, we are very confident of our future growth and profitability prospects.”