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PB Fintech to wipe out accumulated losses in next 4 years on revenue growth

PB Fintech, the parent firm of Policybazaar, expects to wipe out accumulated losses in the next four years on the back of revenue growth, a top official said

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Press Trust of India New Delhi

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PB Fintech, the parent firm of Policybazaar, expects to wipe out accumulated losses in the next four years on the back of revenue growth, a top official said.

The total revenue of the company increased to Rs 1,710 crore in FY23 from Rs 1,200 crore in the preceding fiscal. As a result, the loss narrowed to Rs 488 crore from Rs 833 crore in the previous fiscal.

"FY24, our hope is EBITDA coming out of core business will be more than enough to cover all investments and overall, as a company, we should be PAT positive for the full year. What we want is Rs 1,000 crore PAT by FY27. Three years from now.

 

"In another four years, we should be able to wipe out our accumulated losses. Between, FY 27-28, we should be able to wipe out losses," PB Fintech chairman and group CEO Yashish Dahiya told PTI.

The breakeven will be reached only after accumulated losses are wiped out.

This year, he said, the company would be Rs 400-500 crore cash positive and therefore, there may not be any need for additional capital infusion.

Capital required would be through internal accrual for existing business and new business, he added.

The focus area for the company would be a new business, renewal revenue and bringing down fixed cost, he said, adding new business gives scale not profitability.

Talking about the financial, he said the annual run rate on the renewal income is now Rs 388 crore, which was Rs 265 crore last year in the same quarter, this typically operates at about 85 per cent margin and is a significant source of profit growth.

"We are now at an annual run rate of about Rs 14,000 crore insurance premium. The operating metric, we look at is the premium per inquiry, which is now at Rs 1,754 which is our highest ever, it is 27 per cent higher than last year," he said.

Apart from Policybazaar, the other platforms run by the company are Paisabazaar, PB partners, doc prime and money wide.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jun 12 2023 | 8:45 PM IST

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