This represented an 11% rise on a sequential basis, the company said.
The firm has also grown its disbursals by 53% year-on-year to Rs 3,542 crore in the first quarter of FY24, from Rs 2,320 crore a year ago.
While it declined to comment on actual figures, the credit marketplace added that it is operating at a 6%-7% EBITDA (earnings before interest, taxes, depreciation, and amortization) to revenue ratio, holding on to its guidance of clocking a net profit in FY24.
This comes on the back of parent PB Fintech posting an operating profit and a significantly smaller net loss for the fiscal first quarter.
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On Monday, PB Fintech said net loss for the quarter ended June 30 shrank to Rs 11.9 crore from Rs 204.3 crore a year earlier, even as operating revenue rose 32% to Rs 665.58 crore.Paisabazaar roughly contributes to 20% of the group’s overall operating income every quarter.
“Our (Paisabazaar) revenue growth is more or less in line with our growth in credit disbursals and issuance of credit cards (for partners) and our aim is to continue growing three to four times,” said Naveen Kukreja, cofounder and chief executive of Paisabazaar.
The digital lending platform only acts as a distributor of credit for its 65 financial partners and does not take any loan on its books since it doesn’t hold a non-banking finance company (NBFC) licence. It earns a commission from lending partners on loans availed by users.
Back in 2021, the credit marketplace had started with its strategy around co-creating products along with its financial partners to tap into near credit-worthy segments.
Accordingly, instead of taking an upfront commission to acquire the customer, Paisabazaar started taking only a fraction of the fee upfront along with a certain share of the loan or credit card interest (as commission) when the customer repays.
Paisabazaar accrues this revenue for the lifetime of the product, which it calls ‘trail income’.
“About 13-14% of our quarterly revenues is coming from trail income (back book). It was almost zero six quarters ago. Our objective is to try and take this to 25% over a period of time, so that our trail becomes a meaningful part of revenues which helps us during tougher times (slower quarters) and makes us more profitable,” added Kukreja.
Paisabazaar operates on an 80% margin for these co-created partnerships, helping it increase profitability.
At present, 87% of Paisabazaar’s books is unsecured, while the rest are secured lines of credit. Its unsecured credit lines also include giving loans to small and medium enterprises.
The platform also adds close to 2.1 million customers every quarter.
