PB Fintech to wipe out accumulated losses in next 4 years on revenue growth

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PB Fintech, the parent company of Policybazaar, expects to wipe out accumulated losses in the next four years on the back of revenue growth, a senior official said.

The company’s total revenue rose to Rs.1,710 crore in FY23 from Rs.1,200 crore in the previous financial year. As a result, the loss narrowed to Rs. 488 crore from Rs. 833 crore in the previous financial year.

“Fiscal year 24, we hope EBITDA generated by core business will be more than enough to cover all investments and in general, as a company, we should be PAT positive for the whole year. What we want is Rs 1,000 crore after value added by the financial year. 27. Three years from now.

“In four more years, we should be able to eliminate our accumulated losses. Between FY27-28, we should be able to eliminate losses,” PB Fintech Chairman and Group CEO Yashsh Dhahia told PTI.

The break-even point will only be reached after the accumulated losses have been eliminated.

This year, he said, the company will be Rs 400-500 crore cash positive and hence, no additional capital injection may be required.

He added that the required capital will be through internal accrual for existing business and new business.

The company’s area of ​​focus will be new business, renewal revenue and fixed cost reduction, he said, adding that new business gives scope, not profitability.

Speaking of finances, he said the annual run rate on renewal income is now Rs. 388 crore, which was Rs. 265 crore last year in the same quarter, this typically works out at a margin of 85 per cent and is an important source of earnings growth.

“We are now at an annual operating rate of about Rs 14,000 crore insurance premium. The operational metric, which we are looking at is the premium per inquiry, which is now Rs 1,754 which is the highest ever, which is 27 per cent higher than the previous year,” he said.

Apart from Policybazaar, the other platforms operated by the company are Paisabazaar, PB partners, doc prime and money wide.

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