BankBazaar posted a 51% YOY increase in revenue in Q1-FY24, driven by its portfolio of co-branded Credit Cards and Personal Loans, closing FY23 with audited revenue of ₹159 crore (66% revenue growth from FY22). Read on for more.
BankBazaar.com, a fintech co-branded credit card issuer and online platform for free credit score, posted a 51% YOY increase in revenue in Q1-FY24, driven by its portfolio of co-branded Credit Cards and Personal Loans. This performance is against the backdrop of Credit Card spends in India hitting a record high of ₹1.4 trillion in May with 87.4 million Credit Cards in force. This significant growth is driven by consumer demand for digital Credit Cards that provide multiple add-on benefits such as No-Cost EMIs for electronics, and travel and hospitality in addition to the usual rewards. The company is also excited about shortly enabling a Credit Card on UPI option for consumers which will open up 60 million merchants.
The brand has also filed its audited revenue from operations for the financial year ended March 2023 with the Ministry Of Corporate Affairs. The audited FY23 revenue of BankBazaar was ₹159 crore (a 66% YOY growth compared to FY22) with an EBITDA burn of 14%. By further narrowing the EBITDA burn in Q1, the company stated it is poised for sustainable co-brand business scale-up. With Q1-FY24 growth momentum established in tough market conditions for digital businesses and tight control of fixed costs, the company is set to accelerate revenue to over ₹250 crore in FY24 with profit.
Adhil Shetty, Co-Founder and CEO, BankBazaar.com, says: “BankBazaar is committed to delivering a compelling growth story. With a strong momentum of 66% growth in FY23 and a significant reduction in EBITDA burn, we are strategically positioned to accelerate our revenue growth in FY24. 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 instills confidence in our stakeholders.”
Pankaj Bansal, Chief Business Officer (CBO), BankBazaar.com, attributes the 51% revenue growth in Q1-FY24 against Q1-FY23 to the growth of the co-brand Credit Card business. Says Bansal: “The strategic shift to a co-brand business has proven to be a game-changer for us, and we firmly believe that this approach will continue to be the cornerstone of our growth in the coming months and years. The horizon for the upcoming quarters and years is positive, thanks to our rapidly growing co-brand partnerships with large banks. There is a lot of interest in BankBazaar co-brand Credit Card offering Credit Score health check, special rewards for digital spends, and targeted No-Cost EMIs every month, which is going to accelerate our revenue and our journey to profitability this year.”
BankBazaar.com is one of India’s fintech co-branded Credit Card platform and online platform for free Credit Score, and has a customer base of over 56Mn users. Supported by global investors such as Experian, Eight Roads, Sequoia India, WSV, & Amazon, BankBazaar has been at the forefront of democratising finance in India by providing users with frictionless access to credit.
[Source: Company Press Release Dated July 26th, 2023.]