Policybazaar parent EtechAces swings to profitability in FY17
EtechAces, which operates Policybazaar and Paisabazaar, posts profit of Rs12.9 crore for 2016-17, the first time since its 2008 launch
New Delhi: EtechAces Marketing and Consulting Pvt. Ltd, which operates Policybazaar and Paisabazaar, posted a net profit of Rs12.9 crore for 2016-17, the first time since its 2008 launch. Last year, it had posted a net loss of Rs110 crore.
According to the documents sourced from Tofler, consolidated revenue also doubled year-on-year to Rs213 crore, which includes about 30% contribution from Paisabazaar, its loans platform launched in 2014.
“This is the second year we have delivered 2x growth in sales. On every transaction, we were making some money, so as the number of transactions grew, while money coming in became significant, we were also able to make more on each transaction,” Policybazaar founder and chief executive officer Yashish Dahiya told Mint.
Paisabazaar has emerged as a key focus area for the company. Having spent about $12 million on the unit, the company expects to significantly scale Paisabazaar. “By March 2019, we expect Paisabazaar to overtake Policybazaar in terms of sales,” Dahiya said.
While Policybazaar offers insurance products and comparison tools, PaisaBazaar is positioned as a more consumer banking-centric offering. Along with loans and investment products like mutual funds and fixed deposits, the company is now planning to add on Paisabazaar a separate healthcare tab that will allow users to book doctor appointments, lab tests and even order medicines online, Dahiya said.
“We are close of selecting our bankers, but 2018 is very unlikely to do the IPO. It is much more likely to be 2019,” he said.
Last month, PolicyBazaar raised Rs500 crore from True North, IDG Venture Partners, and Wellington Management Group.
He also said managing the interest of all investors is one of the reasons to defer the IPO. “When we’ll IPO, it will all have to be secondary. The biggest reason IPO is being shifted back is because the investors don’t want to sell so soon.”
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