Fintech firm BankBazaar.com is anticipating a positive turnaround in its financial performance this year, thanks to its introduction of new products, including co-branded credit cards on UPI.
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Adhil Shetty, the Founder and CEO of BankBazaar.com, shared that once the company achieves breakeven, it will begin its listing preparations, with plans to file the Draft Red Herring Prospectus for an IPO in the next financial year.
Initially starting as a loan comparison platform in 2008, BankBazaar.com shifted its focus to co-branded credit cards, collaborating with various banks to issue such cards.
The introduction of co-branded credit cards on UPI is expected to be a game-changer, as there is a high demand for credit in the market, likely accelerating the company’s revenue growth.
Moreover, the company’s strategy of offering targeted no-cost EMIs every month will further contribute to its top line, and they aim to achieve revenue exceeding Rs 250 crore in FY24, along with achieving profitability.
During the first quarter, the company reported a significant 51% increase in revenue, primarily driven by the success of its co-branded credit cards and personal loans.
For FY23, BankBazaar.com’s audited revenue stood at Rs 159 crore, representing an impressive 66% growth compared to the previous fiscal year, with an Earnings before interest, taxes, depreciation, and amortization (EBITDA) burn of 14%.
With a strong growth momentum of 66% in FY23 and a substantial reduction in EBITDA burn, the company is strategically positioned to accelerate its revenue growth in FY24, aiming to reach Rs 250 crore.
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Adhil Shetty emphasized the company’s commitment to transparency and financial responsibility in the business landscape as they gear up for a potential IPO shortly.
BankBazaar.com’s proactive approach and focus on EBITDA have enabled them to maintain a strong market position and foster stakeholder confidence.