Fintech firm BankBazaar.com plans to launch IPO, aims to get listed in next 12-18 months

Fintech platform BankBazaar.com said its initial public offering (IPO) plan is under process with an aim to list in the next 12-18 months. Prior to the IPO, BankBazaar said it is considering raising a round of capital and appointed ICICI Securities as an advisor for it.

On the earnings front, the company closed FY23 (2022-23) with net revenue of Rs 160 crore, up 60 per cent against FY22 due to a growth in its credit card issuances, it stated.

In a year of global headwinds, a spiking repo rate (rate at which 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 strongly, backed 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 simultaneously have a tremendous opportunity to capture market share. Our sustainable growth strategy demonstrates our strong fundamentals and our scalable co-brand solutions which can bring value to existing and new investors even for the long term," said Adhil Shetty, CEO of Bankbazaar.

"We have a compelling growth story to tell at a time when reports suggest PE/VC investments nearly 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 per cent year-on-year (YoY) in January.

The company said it hopes to exit FY24 with a revenue of Rs 250 crore and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) profit for the full year with the co-brand model as the growth driver.

"We've built a co-branded portfolio of digital products which has created sustainable revenue while improving margins," Shetty added.

The company also mentioned that it is working to increase the depth of its offerings to service the digital customer demand while ensuring profitability, which both private and public investors are looking for in digital businesses.

BankBazaar.com is a fintech co-branded credit card issuer and online platform for free credit score 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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