By 2023, online financial services market place BankBazaar on Thursday announced that it plans an IPO in order to list on the public markets. This announcement comes amid company clocking its first profit in the month of March 2022 as well as reported revenue growth in fiscal year 2021-22.
In the statement the fintech firm headquartered in Chennai said that it is going to recruit over 1500 employees across departments as this year it aims to expand its product offerings such as tailored co-branded credit products, including credit cards and personal loans from multiple banks and NBFCs (non banking financial company).
Decreased Negative EBITDA in this Fiscal
In the fiscal 2021, the negative EBITDA was 51.5 per cent. The company could manage to narrow down its negative EBITDA to 25 per cent. It added that the company which is backed by Sequoia India and Amazon reported annualised revenue run rate of Rs 156 crore with revenue growing at a CAGR of 100%.
In a statement, CEO of BankBazaar.com Adhil Shetty said that “As a business, BankBazaar has always been focussed on three things: great technology, customer focus, and the bottom-line. I am proud to say that we are one of the few fintechs in India and the world to be growing rapidly and profitably”.
He added that “What makes it more memorable is the fact that we have managed to achieve this in very tough times when the entire nature of the BFSI structure is undergoing unprecedented shifts due to the pandemic. The shift to a co-brand business strategy has yielded great results for the company and will remain the key to our growth in coming years”.
Plan to Have 1 Million Co-Brand Credit Card in Circulation
Within 2 years, the company aims to have one million co-brand credit cards in circulation. For the current contribution of 50%, the share is supposed to scaled upto 80% in FY23. For the cobranded cards, BankBazaar counts Yes Bank as one of its partners.
The company said that much of its growth it attributes to the co-brand credit card business model that’s now contributing over half of the total issuance. According to a PwC report, the concept of co-branded cards was introduced in 1996, is not a new model. Co-branded cards model is when two parties, typically an issuing bank and a corporate/merchant, join hands to offer a product which encompasses the best of both worlds.