ETtech In-depth: Policybazaar’s dream run at the bourses decoded
fintech industry is grappling with issues around stagnating private market valuation and a slowdown in venture funding, the stock price of insurance marketplace Policybazaar’s parent has been on a tear.
At close of trading Monday, PB Fintech had a market capitalisation of $9.8 billion. Its stock price has crossed Rs 1,800 — closed 8% higher at 1,819.90 on the BSE Monday — compared with around Rs 1,000 six months back.
A strong financial performance, with two quarters of net profit, steady revenue growth and expansion in new insurance premium collection business, is making the Gurugram-based company an attractive investment option.
Returns on investments in new biz
In the June quarter, the company crossed the Rs 1,000 crore quarterly revenue mark and reported a net profit of Rs 60 crore.
“Our initial investments in multiple new business lines have started to show some healthy returns; our losses in the agent business and corporate business have started to go down which is working in our favour,” Policybazaar chief executive Sarbvir Singh said.
The insurance marketplace, which was focused on building a direct-to-consumer online business all these years, now has a network of 200,000 agents, out of which 60,000 are active agents.
Singh said while the persistency in premium payments is going up, growth in fresh business is building a strong pipeline for the future.
The company reported an annual revenue run rate of Rs 559 crore for its renewal business, compared with Rs 418 crore last year.
Its June quarter
