Policybazaar Q1 Net Loss Surges 84% YoY To INR 204.33 Cr, Operating Revenue Up 112%

Operating revenue jumped 112% YoY, to INR 505.18 Cr during the period under review as total expenses increased 105 percent.

Policybazaar handled insurance policy premiums of INR 2,430 crore in Q1 FY23, which was up 52% from Q1 FY22.

Paisabazaar issued credit of INR 2,320 crore in the last quarter and grew by 136% annually on a basis.

PB Fintech, the parent company of fintech company Policybazaar this Wednesday (August 10) reported a net loss that was INR 204.33 Cr in the initial period (Q1) in the year of 2022-23 (FY23). The loss increased by 84 percent on a year-on-year (YoY) basis, up from INR 110.84 Cr during the period ending June 2021, whereas it reduced by 77% on the quarterly-on-quarter (QoQ) base.

Operating revenue increased 112% YoY, to INR 505.18 Cr in the period under review. The total expenses also increased 10% in the Q1 FY23, to INR 756.79 Cr, up from INR 369.01 Cr in the same time in the year before.

Benefits for employees made up the biggest portion of the total costs, increasing 81% YoY , to the figure of INR 381.65 Cr in the first quarter of FY23. Marketing expenses recorded a significant rise by 172%, on a year-on-year basis, reaching INR 289.79 Cr in the period which ended in June 2022.

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The fintech company announced an adjustment to its EBITDA in the range of 18 INR Crore for its non-core and core businesses.

Policybazaar stated they processed premiums for insurance amounting to INR 2,430 crore during the first quarter of FY23, an increase of 52% over the same time last year. The latest insurance premium per inquiry per month was INR 1,595.

Quality of our business regarding claims ratios and retention rates make our company profitable for the partners we work with. A high rate of disclosure and detection of fraud are helping to improve the claims settlement ratios of our clients, it said in an announcement.

Policybazaar said the insurance industry is experiencing an ongoing shift in the business mix to rural India. The company said that 59 percent of its insurance business originated from cities outside of Tier-I FY22, a rise from the 28% it had during FY17. Policybazaar said.

PBFintech also operates an online payment platform Paisabazaar. PBFintech said it had disbursed credit amounting to INR 2,320 crores during the period under review increasing 136% over a year-on-year basis.

We are currently at a steady pace in the range of INR 11,200 Cr disbursement as well as 4.3 Lakh credit card issuance on an annual basis. More than 29.5 millions of customers have access to credit scores on our paisabazaar platform to date from more than 823 cities, the statement said.

PB Fintech had close to 61.2 Million registered customers on its Policybazaar platform as of the close in June of 2022. The company held close to ninety percent market share the insurance aggregator market online.

It boasts that it has more than 12.3 Mn users who have transacted since its start and has it has sold 27.9 million policies to date.

The fintech firm also announced that it runs 40 physical stores across 32 locations across the United States as well as on-ground support for 114 cities.

PBFintech shares PBFintech on Wednesday closed 0.59 percent higher, with an the price of INR 560.50 at the BSE. The company announced its financial results following market hours.

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