BankBazaar Reports Significant Revenue Growth for FY25
BankBazaar, the online financial marketplace, demonstrated a 33% year-on-year increase in revenue for the fiscal year ending March 2025 while also managing to lower its losses during this period. The operating revenue for BankBazaar rose to Rs 249 crore in FY25, up from Rs 187 crore in FY24, as indicated by the consolidated financial statements submitted to the Registrar of Companies (RoC).
Overview of BankBazaar’s Financial Performance
BankBazaar serves as a co-branded credit card issuer, allowing users to check their credit scores while cross-selling third-party loans and insurance services. The company’s primary source of revenue stems from commissions earned from banks upon loan disbursals. With the inclusion of non-operating income amounting to Rs 5 crore, BankBazaar’s total income reached Rs 254 crore in FY25, compared to Rs 188 crore in the previous fiscal year.
Key Revenue Insights from BankBazaar
In a media interaction last year, the CEO of BankBazaar, Adil Shetty, noted that the firm generated approximately Rs 210 crore in recurring revenue through co-branded credit card distribution. The company strategically refocused its efforts on credit card distribution and a subscription model for credit health management.
Analysis of Operating Expenses
While the financial statements provided by BankBazaar did not present a detailed breakdown of expenses, it was noted that operating expenses totalled Rs 165 crore, accounting for 59% of overall costs. This figure represents a significant increase of 65%, rising from Rs 100 crore in FY24. Employee benefit expenses saw an 8% decline, totalling Rs 61 crore, whereas advertising expenditures remained unchanged at Rs 14 crore. Financing costs increased by 40%, amounting to Rs 14 crore. Consequently, total costs rose by 29% to Rs 278 crore in FY25, compared to Rs 215 crore in FY24.
Net Loss and Financial Ratios
BankBazaar recorded a net loss reduction of 13% to Rs 23 crore in FY25 from Rs 26.5 crore in FY24. The company’s Return on Capital Employed (ROCE) and EBITDA margin were reported at -9.86% and -4.42%, respectively. At a unit level, BankBazaar expended Rs 1.12 to generate each rupee of operating revenue during FY25. The company’s current assets were valued at Rs 140 crore, which included Rs 11 crore in cash and bank balances for FY25.
Funding and Investment Insights
According to various reports, BankBazaar has successfully raised a cumulative total of $133 million in funding. Prominent investors, including Peak XV, Amazon, and Walden International, have played leading roles in these funding rounds.