PB Fintech Ltd, the parent company of insurance platform Policybazaar and lending marketplace Paisabazaar, reported its first ever net profit on the back of strong revenue growth during the third quarter of fiscal year 2024.
PB Fintech turned profitable on a consolidated basis with a net profit of Rs 37 crore, compared to a loss of Rs 87 crore in Q3 FY23. The Rs 125 crore jump in profitability was aided by improving unit economics across businesses.
The company posted consolidated operating revenue of Rs 871 crore, a 43% increase year-over-year (YoY).
Revenue from its core online business, consisting of Policybazaar and Paisabazaar, grew 39% YoY to Rs 593 crore. The core online business also saw its contribution margin improve to 44% versus 43% last year. Adjusted EBITDA for the core online business jumped 3x to Rs 76 crore, compared to Rs 26 crore in Q3 FY23. The adjusted EBITDA margin improved significantly to 13% from 6% YoY.
PB Fintech’s new initiatives segment, including its insurance distribution platform PB Partners, grew revenue by 50% YoY to Rs 278 crore. This segment also achieved contribution margin breakeven during the quarter.
On the operational front, the total insurance premiums serviced by Policybazaar hit an annualized run-rate of Rs 17,000 crore, rising 43% YoY. The protection segment (health and term insurance) saw even faster growth of 44% YoY. Renewal or trail revenues rose 44% YoY to Rs 454 crore annualized, which typically generates over 85% margins. The company maintained strong customer service levels with a customer satisfaction score of 88%.
Paisabazaar facilitated Rs 14,321 crore of annualized loan disbursals and issued 5.6 lakh credit cards. Over 75% of cards and disbursals were processed completely digitally.
"We continue to deliver robust topline growth with improving unit economics. Our core online business has achieved adjusted EBITDA breakeven and both Policybazaar and Paisabazaar have cemented themselves as clear market leaders," said Yashish Dahiya, Chairman and Group CEO.
The company remains confident of achieving its full year growth and profitability guidance on the back of strong momentum across business segments.