The parent company of Policybazaar, PB Fintech, reported revenues of Rs 1,010 crore for April–June 2024, marking a 52% increase compared to the previous year. It posted a net profit of Rs 60 crore for the period, reversing a loss of Rs 12 crore from the same quarter last year.
PB Fintech, which is publicly listed, could have achieved a net profit of Rs 90 crore but chose to invest more in its core online insurance business, according to CEO Yashish Dahiya. The company has invested over Rs 25 crore to “build up capacity” for the business. “We are in a phase of growth akin to a child and do not want to optimize the input of protein,” he explained to analysts.
The total insurance premiums for the company increased by 61% year-on-year to Rs 4,871 crore, driven by strong growth in its health and life insurance segments. New premiums are growing at 78%, twice the rate of renewals.
Key expenses rose during the quarter, with employee benefits up by 18% to Rs 455 crore and spending on advertising and promotions increasing by 23% to Rs 245 crore. In FY24, PB Fintech had previously cut advertising expenses to focus on profitability.
Sequentially, compared to January–March 2024, revenues declined by 7.5% in April–June 2024. This drop is attributed to the seasonal surge in health insurance purchases or renewals before the end of the fiscal year.
Policybazaar’s customers represent 15-20% of the insurance claims submitted to hospitals and other healthcare facilities. Dahiya informed analysts that the company aims to capitalize on this scale by establishing direct relationships with hospitals and plans to introduce a new product, though details were not disclosed.
“In the past six months, I have spent over 50% of my time addressing this issue… The current healthcare model focuses on revenue per bed. We believe the future model will center around the lifetime value of the customer, starting with the insurance premium they pay,” he explained, hinting at the rationale behind the upcoming product.
Paisabazaar’s Performance: Besides Policybazaar, which contributes over 83% of the group’s revenue, PB Fintech also operates Paisabazaar, a lending platform that assists customers in securing unsecured personal loans from non-banking financial companies and obtaining credit cards, generating income from commissions and advertising.
Paisabazaar’s business grew by 8% during the quarter, falling short of the 10% growth projected in the previous earnings call. The platform facilitated loan disbursements of Rs 3,100 crore, a 25% decline from the peak of Rs 4,139 crore recorded in July–September 2023.
Paisabazaar is working to enhance its secured lending segment, which includes home loans and loans against property, but progress is slow. “We need to strategize on how to grow the business,” Dahiya commented.
A Write-Off: PB Fintech is writing off Rs 44 crore related to its investment in MyLoanCare, an NBFC previously associated with Paisabazaar.
MyLoanCare’s founder left the company earlier this year. “Looking back, we overextended by acquiring too much equity, taking a 70% stake in MyLoanCare. A more appropriate range would have been 22–35%, as exceeding 50% means it’s no longer the founder’s company,” Dahiya noted.
He also indicated that PB Fintech will not distribute cash to shareholders through dividends or buybacks until March 2026, despite having cash reserves exceeding Rs 5,200 crore.
The company announced the appointment of Dhruv Shringi as an independent board director. Shringi, founder and CEO of the travel platform Yatra, previously worked with Dahiya at the European travel firm Ebookers.
Following the results announcement, PB Fintech’s shares rose 8% to a new 52-week high of Rs 1,552 on Wednesday, August 7.