BankBazaar Turns Profitable With New Co-Brand Strategy; Exits FY22 With Rs.156 Cr Annualized Revenue Run Rate
National, April 07, 2022: BankBazaar.com, an Indian fintech co-branded credit card issuer and online platform for free credit score, reported that it is profitable in March 2022. The company is exiting the year with an annualised revenue run rate of Rs.156 Cr and declared that its revenue is growing at a CAGR of 100% with EBITDA profitability. The company attributes this growth to its new co-brand credit card business model that’s now contributing over half of the total issuance in less than five months of launch.
Success of Co-brand Model
BankBazaar used FY21 to build and sharpen its business strategy to pivot to a co-brand business model. Co-brand contribution to issuances is expected to scale up to 80% in FY23 from the current 50% contribution. The company aims to have one million co-brand credit cards in circulation within two years.
BankBazaar was able to boost credit card issuances by 82% in FY22 over FY21, tapping into its high-quality registered customer base of over 50 million. Over 70% of customers who use the BankBazaar credit tracker to keep track of their credit score have a score of 700+. The company is looking to cater to this high-quality customer base via several tailored co-branded credit products, including credit cards and personal loans from multiple banks and NBFCs. BankBazaar also plans to launch co-branded BNPL products in the coming year to build an expansive credit portfolio and sustainable revenue.
BankBazaar grew operating revenue 48% in FY22 over FY21. The company improved its EBITDA margin from -51.5% in FY21 to -25% in FY22. BankBazaar’s EBITDA improved every quarter in FY22 and it hit the all-important milestone of EBITDA profitability in March 2022. With its 100% CAGR revenue growth continuing in FY23, the company plans to exit FY23 with full-year EBITDA profitability.
Adhil Shetty, CEO, BankBazaar.com, said: “As a business, BankBazaar has always been focussed on three things: great technology, customer focus, and the bottom-line. I am proud to say that we are one of the few fintechs in India and the world to be growing rapidly and profitably. What makes it more memorable is the fact that we have managed to achieve this in very tough times when the entire nature of the BFSI structure is undergoing unprecedented shifts due to the pandemic. The shift to a co-brand business strategy has yielded great results for the company and will remain the key to our growth in coming years.”
2022 Hiring & 2023 IPO Plans
BankBazaar plans to intensify hiring across sectors and recruit 1500+ new employees as it prepares for technology and product expansions to support accelerated and sustainable revenue growth in the coming months. The company is also preparing for an IPO in 2023.
BankBazaar.com is an Indian fintech co-branded credit card issuer and online platform for free credit score and has a captive base of 50 million registered users.
Supported by global investors such as Experian, Eight Roads, Sequoia India, WSV, and Amazon, BankBazaar has been at the forefront of democratising finance in India by providing end-users with frictionless access to credit.