PB Fintech doubles its turnover in the fourth quarter; loss multiplied by 3.4

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PB Fintech reported a total income of Rs 591 crore in the fourth quarter of fiscal 2022, doubling the revenue of the same quarter a year ago.

The company, which went public in 2021, is known for its insurance marketplace PoliticsBazaarand a personal finance platform, Paisabazaar.

However, PB Fintech reported a loss of Rs 219.6 crore in Q4 FY22i.e. 3.4 times the loss for the corresponding quarter a year ago.

What happened in the fourth quarter of FY22?

PB Fintech revenue from operations was Rs 540 croreof which 71% came from existing activities and the rest from “new initiatives”.

The existing business is ‘Breakeven EBITDA‘, according to management. EBITDA is the abbreviation of earnings before interest, taxes, depreciation and amortization.

The new initiatives rose 37 times to Rs 154 crore and rose 209% sequentially. Investment in new initiatives was Rs 90 crore in the fourth quarter of FY22.

OK, what was the whole year like?

PB Fintech’s total revenue was Rs 1,550 crore in FY22, up 62% from the previous year. Again his loss was Rs 832 crore, up 5.5 times on the loss for fiscal year 21.

The core insurance business broke even, according to management. “Credit business core

is headed firmly toward profitability,” he said in the stock exchange filings.

Of the operating income of Rs 1,425 crore in FY22, almost 16% came from “new initiatives” and the rest from existing companies. The company has booked Rs 171 billion(3 per cent of its cash reserves of Rs 3,700 crore) for new initiatives.

What are the new initiatives?

PB Fintech did not specify them. But he said he preferred ‘build’ rather than ‘buy’ in new neighborhoods. “We were unable to identify an inorganic growth opportunity where we were confident that buying overbuild was the right move for us,” management said.

But there are three new initiatives, of which he describes one: a platform for independent insurance sellers and other financial products. This application allows sellers to sell products and suppliers and manage customers.

Launched last July, this initiative is used in 11 816 out of India’s 19,100 PINs, according to the exchange’s filing. PB Fintech generated more than Rs 200 crore in monthly bonuses in March 2022, he said.

So what?

PB Fintech did not opt ​​for inorganic options valued between $200 million and $700 million. “We have instead reached the leadership position (organically) with less than $7 million (in six months),” the stock market filing said.

Basically then,

PB Fintech flagship Policybazaar reported renewal revenue of over Rs 250 crore in FY22. Insurance premiums increased by 46% year-on-year to Rs 6,975 crore in FY22.

It has nearly 59 million registered customers, including 11.8 million are customers who transact. Policybazaar owns 93% of the online insurance aggregator market in India, remember?

Paisabazaar’s loan disbursements were Rs 9,168 crore in FY22, up 39% on the previous year. It added 5.8 million customers last year.

And PB Fintech will use a economic environment to invest and develop new businesses.

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