PolicyBazaar parent narrows loss by 12% in FY20

PolicyBazaar parent narrows loss by 12% in FY20
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4 Feb, 2021

PB Fintech, the parent holding of startups including PolicyBazaar and PaisaBazaar, shrunk its yearly loss by 11.7%, as per its latest regulatory filing.

The company said its loss stood at Rs 304.03 crore, in the financial year ended March 2020, having tapered from Rs 344.20 crore, a year earlier.

Total revenue rose by 61.7% to Rs 855.56 crore.

The group’s largest expenses were in areas of employee, advertising, and information technology costs, in the reported period.

Total employee benefit expense rose by 31% to Rs 520.85 crore. Advertising promotional expenses rose by 28.7% to Rs 445.22 crore.

Information technology (IT) expenses, which include internet and server charges, computer and equipment rentals, IT consultancy charges, and communication expenses, rose by 60% to Rs 50.75 crore.

PB Fintech, formerly called Etechaces Marketing and Consulting, operates a total of seven businesses. It runs online insurer PolicyBazaar, online marketplace of financial products PaisaBazaar, as well as call centre operator Icall Support Services, online healthcare services provider Docprime Technologies, and motor vehicle claims and related assistance services provider Accurex Marketing and Consulting.

The other two entities are PB Marketing and Consulting, earlier called Policybazaar Insurance Broking, and PB Fintech in the United Arab Emirates -- both entities that provide online, offline and direct marketing of insurance products.

On a standalone basis in the reported period, PolicyBazaar scored total revenues of Rs 518.84 crore, up 66% year-over-year. Its total loss ballooned by 2.4% to Rs 218.16 crore.

PaisaBazaar, on a standalone basis in the reported period, made total revenues of Rs 229 crore, up 47% year-over-year. Its total loss ballooned by 4.2% to Rs 101.19 crore.

Insurance aggregator PolicyBazaar, based in Gurugram, is set to go public in September 2021, at a valuation of over $3.5 billion, as per a Bloomberg report in July 2020.