BankBazaar.com, which eyes to become the most profitable co-branded credit card platform, expects to turn profitable this fiscal and plans to file for an IPO by 2023 end, CEO Adhil Shetty said
BankBazaar.com, which eyes to become the most profitable co-branded credit card platform, expects to turn profitable this fiscal and plans to file for an IPO by the end of next year, founder and CEO Adhil Shetty said.
The company which started off as a loan comparing platform in 2008 is now majorly into co-branded credit card space, issuing two such cards in association with Yes Bank and RBL Bank.
In the second quarter of FY23, the company registered 85 per cent year-on-year growth in its top line, clocking a revenue of Rs 170 crore. Company’s credit card sales were up by 115 per cent in Q2.
“We are happy that we are growing profitably and we have delivered 85 per cent year-on-year top line growth in Q2FY23. We had annualised revenue of Rs 170 crore (up by 85 per cent from a year ago) in Q2 and in August and September, both the months, we were EBITDA positive.
“So we are projecting that whatever we have delivered in Q2, that will continue and that’s the kind of growth we would like to deliver for the full year. And we would like to deliver like we have delivered in August and September. We would like to aim and deliver a full year profit for FY23,” Shetty told PTI in an interview.
EBITDA (earnings before interest, taxes, depreciation, and amortization) is the measure of a company’s overall financial performance.
In fiscal year 2021-22, BankBazaar.com had a top line of Rs 150 crore on an annualised basis.
Shetty said that the growth trend will continue in Q3 and Q4 of this fiscal because of the growth in its co-branded credit card segment.
“We believe this puts in a unique position, when investors reach out to us and talk to us, they are like this is very-very exciting, you are building a long-term company which fits in with the regulatory regime because we are not trying to replay some bank kind of thing but trying to partner with a bank,” he said.
BankBazaar is relying on the banks to provide the balance sheet and compliance on KYC (know your customer).
“We believe we are in a sweet spot. Our vision for the company is to build India’s most profitable co-branded credit card platform…with the kind of conversations that are happening now, we remain committed to our goal that we would like as a profitable company to go for an IPO (Initial Public Offer) and file for it by the end of next (calendar) year,” he said.
In August, the official had said that the company is mulling to raise about USD 100 million over the next three years. However, there is no any immediate need of capital for the current fiscal.
“In terms of what we feel is whenever an investor reaches out to us and talks, is that we are growing profitably. We don’t need the capital to grow, but obviously if capital is available from a good strategic investment to accelerate growth…I think we are happy to engage with the conversations that are happening,” he said further.
BankBazaar.com claims to be the largest fintech co-branded credit card issuer and online platform for free credit score with over 5 crore registered users. It is backed by global investors such as WSV, Experian, Eight Roads, Sequoia India, Walden International and Amazon.
Talking about the credit card spend behaviour of the customers, he said a lot of spend is now moving to online mode.
“At BankBazaar, all our co-branded credit cards, we are seeing that the online ticket size is increasing and currently our online ticket size is about Rs 25,000. What we are seeing that more and more people are spending online.
The online ticket size per transaction is significantly higher than the offline transactions of about Rs 13,000-14,000, Shetty said.