Mumbai (Maharashtra) [India], January 17 (ANI/NewsVoir): BankBazaar.com, India’s largest fintech co-branded credit card issuer and online platform for free credit score posted 80% year-on-year growth in credit card issuances between December 2020 and December 2021.
The growth was built on new credit card issuances via completely digital processes and a co-branded business model that currently accounts for 50% of the company’s credit card issuances. This fits into the wider trend of rising credit card and digital payment adoption in India, fast-tracked by the pandemic. Parallelly, on the revenue front, BankBazaar tightly controlled EBITDA burn at 6% of revenue even as December 2021 revenue grew 68% over June 2021.
This growth was supported by some crucial business changes. The company expanded its portfolio to include co-branded credit cards. The first of such partnerships is with YES Bank for the YES Bank-BankBazaar FinBooster co-branded credit card. The co-branded cards tackle the most important concern expressed by credit card customers in pandemic – managing credit prudently to keep credit score at its peak. They double-up as an advisor on credit health and management and provide accelerated reward points on digital spends. The company is looking to scale up to 1 million BankBazaar co-branded credit cards in force.
Adhil Shetty, Co-founder and CEO, BankBazaar.com, said, “For many, credit cards are the first preference as they help users handle several aspects of their financial life, from payments to credit to incentives. Small wonder that the number of outstanding credit cards in India rose to 67.6 million. As the first movers in enabling contactless digital KYC solutions especially during the pandemic, BankBazaar has been indispensable to both its 50 million registered customers as well as its bank and NBFC partners. As the demand grew, so did our ability to connect a larger number of customers and partners to enable safe, secure, and simplified access to credit.”
The company is looking at 100% CAGR with EBITDA positivity in FY23 riding on the backs of their co-branded products. The company is focussed on profitability, which will pave BankBazaar’s way for a public listing in the near future. “This is a great time for the fintech space in India, with companies vying with each other to develop newer and better innovations that harness technology to solve complex problems and make finance simpler and easier to access. Bank Bazaar has made significant progress in its business model and is now close to profitability while growing quickly in an exciting market,” said Shailesh Lakhani, MD, Sequoia India.
Andrew Kau, Managing Director, Walden International, concludes, “We are super excited about the progress that BankBazaar has made with its innovative fintech products, on the B2B2C side and now on the B2C side as well. The management team at BankBazaar has proven their grit, determination, and imagination during an incredibly tough two years of COVID-19. We look forward to a stellar 2022.”
BankBazaar.com is India’s largest fintech co-branded credit card issuer and online platform for free credit score, and has a captive base of 50Mn registered users.
Supported by global investors such as Experian, Eight Roads, Sequoia Capital India, WSV, and Amazon, BankBazaar has been at the forefront of democratising finance in India by providing end users with frictionless access to credit.
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