BankBazaar Aims for Positive Bottomline in FY2024, Sets Sights on IPO Filing Next Year
- ByStartupStory | July 31, 2023
Fintech firm BankBazaar is optimistic about achieving a positive bottomline in the current financial year, driven by new product offerings, such as co-branded credit cards on UPI. Once the company reaches breakeven, it plans to prepare for listing and aims to file the Draft Red Herring Prospectus for an initial public offering (IPO) in the next financial year, as stated by BankBazaar.com Founder and CEO Adhil Shetty.
BankBazaar.com Founder and CEO Adhil Shetty told PTI. The company which started off as a loan comparison platform in 2008, is now majorly into co-branded credit card space, issuing such cards in association with banks. BankBazaar.com expects to soon launch co-branded credit cards on UPI, Shetty said, adding that this is going to accelerate revenue as demand for credit is high. Besides, he added, targeted no-cost EMIs every month are going to add to the topline and the company is set to push revenue to over Rs 250 crore in FY2024 with profit. During the first quarter, the company posted a 51% increase in revenue driven by its portfolio of co-branded credit cards and personal loans.
Initially founded as a loan comparison platform in 2008, BankBazaar.com has now shifted its focus to the co-branded credit card space, partnering with banks to issue such cards. The company is soon launching co-branded credit cards on UPI, expecting it to boost revenue due to high credit demand. Additionally, targeted no-cost EMIs every month are expected to contribute to revenue growth, aiming to surpass Rs 250 crore in FY2024, along with achieving profitability.
In the first quarter, BankBazaar.com experienced a 51% increase in revenue, primarily driven by its portfolio of co-branded credit cards and personal loans. The audited revenue for FY2023 was Rs 159 crore, showing a significant 66% growth over the previous fiscal, with EBITDA burn at 14%.
The audited FY2023 revenue of BankBazaar.com was Rs 159 crore, registering a 66% growth over the previous fiscal with earnings before interest, taxes, depreciation, and amortisation (EBITDA) burn of 14%. With a strong momentum of 66% growth in FY2023 and a significant reduction in EBITDA burn, the company was strategically positioned to accelerate the revenue growth in FY24 to Rs 250 crore, he claimed. “In a landscape where governance is critical, we are working on showcasing our dedication to transparency and financial responsibility as we look to an IPO in the coming year. Our proactive approach and focus on EBITDA allows us to maintain our strong position in the market and instils confidence in our stakeholders,” Shetty added.
With a robust momentum of 66% growth in FY2023 and a reduction in EBITDA burn, the company is strategically positioned to accelerate revenue growth in FY24 to reach Rs 250 crore, according to Adhil Shetty. As the company eyes an IPO in the coming year, it emphasises its commitment to transparency and financial responsibility, aiming to instil confidence in stakeholders through its proactive approach and focus on EBITDA.
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