PB Fintech, the parent company of online insurance and credit platform Policybazaar and Paisabazaar, has reported consolidated net sales of Rs 367.28 crore in the third-quarter ending December 2021. The sales figures are up by 73.19 per cent year on year when compared to Rs 212.09 crore net sales in the corresponding month of the last financial year. The company’s net losses, however, also grew exponentially in this quarter. From the reported net loss of Rs 205 crore in the previous quarter ending September 2021, PB Fintech’s losses climbed to over Rs 298 crore, recording a rise of nearly 45 per cent.
In comparison, the company had reported a net loss of Rs 19.12 crore in the corresponding quarter of the previous financial year.
In the first nine months of the current financial year, the company has recorded a consolidated net loss of Rs 613.07 crore.
PB Fintech’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in the December quarter closed at negative Rs 283.78 crore which is 7739 per cent down from Rs 3.62 crore in December 2020. The adjusted EBITDA (non-GAAP) was a loss of Rs 92 crore which the company claims reflects the investments made in new initiatives and brand advertising.
While the company’s existing business contribution maintained a margin of 40 per cent, new initiative revenue also showed promising signs. From Rs 3 crore last year, PB Fintech’s new initiative revenue jumped to Rs 50 crore with an initial investment of Rs 41 crore. The company claims that PB (PoSP business) in just 6 months of its launch in July 2021 became the number one platform in the B2B2C segment.
While PB Fintech’s insurance premium grew by 68 per cent year on year to Rs 1,796 crore, the company’s credit disbursals moved to Rs 1,926 crore recording year-on-year growth of 94 per cent
Commenting on the QIII FY22 results, 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 of over Rs 8,000 Cr which is a growth of 60% YoY, we are now growing at scale. Margins in our existing businesses were maintained at 40%. Renewal revenue is at an ARR of over Rs 210 Cr, the renewal book operates at 90% contribution margin and will be the biggest driver of our long-term profitability.”
Soon after the release of the quarterly report, PB Fintech’s shares fell more than 3 per cent in early trade today. However, there was some recovery from the day’s low.
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