Fintech firm BankBazaar.com plans to launch IPO, aims to go public in next 12-18 months
Fintech platform BankBazaar.com said its plan for the initial public offering (IPO) is under process with a target of listing in the next 12-18 months. Before the IPO, BankBazaar said it is considering raising a round of capital and appointed ICICI Securities as its adviser.
On the earnings front, the company ended FY23 (2022-23) with a net income of Rs 160 crore, up 60 percent over FY22 due to a growth in credit card issuances, it said.
In a year of global headwinds, a rising repo rate (rate at which the RBI lends money to banks) and high inflation, BankBazaar said it continued to consolidate its position in the unsecured lending space even as retail credit expanded sharply, supported by strong consumer credit demand.
“Today, investors are clearly looking for companies that have a track record of consistent revenue growth and profitability. We believe that sustainable digital companies that can deliver both profitability and growth at the same time have a tremendous opportunity to gain market share. Our sustainable growth strategy demonstrates our strong fundamentals and our scalable co-brand solutions that can deliver value to existing and new investors even in the long term,” said Adhil Shetty, CEO, Bankbazaar.
“We have a compelling growth story to tell at a time when reports suggest that PE/VC investment almost halved in February 2023 and that the funding winter will get worse before it gets better due to concerns about a global recession and increased cost of capital,” he further stated.
According to RBI data, India’s retail credit outlook continues to look strong and was up 20.40 percent year-on-year (YoY) in January.
The company said it hopes to exit FY24 with a revenue of Rs 250 crore and full-year EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) result with the co-brand model as the growth driver.
“We have built a co-branded portfolio of digital products that have generated sustainable revenue while improving margins,” Shetty added.
The company also mentioned that it is working to increase the depth of its offerings to serve digital customer demand while ensuring profitability, which both private and public investors look for in digital businesses.
BankBazaar.com is a fintech co-branded credit card issuer and online platform for free credit scores and has a customer base of over 56 million users. The portal is supported by Experian, Eight Roads, Sequoia India, WSV and Amazon.
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